IMC UNIT 1: Past paper mistakes &
tricky questions & answers 2025/2026
What are threshold fund requirements (relating to AIFMD) - ANS ✔✔A home regulator must
approve if fund:
- over €100m with leverage
- over €500m with no leverage
What is AIFMD? - ANS ✔✔Alternative Fund Managers Directive
What are sub-threshold fund requirements (relating to AIMFD) - ANS ✔✔MiFID Passport
doesn't apply in EU and fund must comply to local laws
Through what are directives issued - ANS ✔✔European Treaty, Article 58
What are the two ways directives can be issued? - ANS ✔✔- through primary legislation
- through delegated legislation (European Community Act Section 2(2))
Who has a macro-prudential role? - ANS ✔✔FPC
What are extra roles the FCA was given in 2014 - ANS ✔✔- lending/brokering credit
- credit reference agency/credit info
- debt collection/admin
- contracts for hire of goods
,What are ancilliary services - ANS ✔✔- safekeeping and admin of financial instruments for
accounts of clients
- granting credit/loans for a transaction the firm loaning is involved in
- advice for undertakings & services relating to mergers and purchase of mergers
- research and analysis relating to transactions in financial instruments
- providing services relating to underwriting
- providing investment & ancilliary services relating to underlying of derivatives
What are regulated activities under UK regulations - ANS ✔✔- accepting deposits
- issuing electronic money
- deals/management of investment
- mortgage arrangement
- MTFs
- OTFs
- contracts of insurance as capital
What is the ICO - ANS ✔✔Information Commissioner's Office
What are fines for breaching the GDPR rules - ANS ✔✔€20m fine or 4% annual turnover / €10m
fine or 2% annual turnover
What is under the Information Commissioner's Office (ICO) - ANS ✔✔- GDPR
- Freedom of INformation Act
- Environmental Information Regulations
- Privacy & Electronic communications Regulations
, What is exempt from PSR - ANS ✔✔Payment systems embedded in securities trading
systems/clearing houses/central counterparties (BoE)
Where does money for the PTM come from? - ANS ✔✔- PTM Levy- 100p for each contract for
transactions over £10,000
- charging fees eg. offer documents
What must trustees ensure? - ANS ✔✔- suitability of an investment
- portfolio appropriately diversified
(get advice if needed)
What does not come under the Trustees Act 2000 - ANS ✔✔- authorised unit trusts
-occupational pension schemes
- some schemes under Charities Act
What did the Pensions Act 2004 do in relation to occupational pensions? - ANS ✔✔- Created
the Pensions Regulator (TPR)
- Introduced the Pensions Protection Fund (PPF)
- scheme specific funding requirements
What did the Pensions Act 2008 change? - ANS ✔✔- All employees with minimum £10,000
income pa must be enrolled in a qualifying pension
- Introduced the National Employment Savings Trust (NEST) for anyone who doesn't have a
quality scheme
What are the objectives of the Pensions Regulator (TPR)? - ANS ✔✔- Protect the benefits of
members of occupational pension schemes
- reduce risk of situations arising that could lead to needing PPF
tricky questions & answers 2025/2026
What are threshold fund requirements (relating to AIFMD) - ANS ✔✔A home regulator must
approve if fund:
- over €100m with leverage
- over €500m with no leverage
What is AIFMD? - ANS ✔✔Alternative Fund Managers Directive
What are sub-threshold fund requirements (relating to AIMFD) - ANS ✔✔MiFID Passport
doesn't apply in EU and fund must comply to local laws
Through what are directives issued - ANS ✔✔European Treaty, Article 58
What are the two ways directives can be issued? - ANS ✔✔- through primary legislation
- through delegated legislation (European Community Act Section 2(2))
Who has a macro-prudential role? - ANS ✔✔FPC
What are extra roles the FCA was given in 2014 - ANS ✔✔- lending/brokering credit
- credit reference agency/credit info
- debt collection/admin
- contracts for hire of goods
,What are ancilliary services - ANS ✔✔- safekeeping and admin of financial instruments for
accounts of clients
- granting credit/loans for a transaction the firm loaning is involved in
- advice for undertakings & services relating to mergers and purchase of mergers
- research and analysis relating to transactions in financial instruments
- providing services relating to underwriting
- providing investment & ancilliary services relating to underlying of derivatives
What are regulated activities under UK regulations - ANS ✔✔- accepting deposits
- issuing electronic money
- deals/management of investment
- mortgage arrangement
- MTFs
- OTFs
- contracts of insurance as capital
What is the ICO - ANS ✔✔Information Commissioner's Office
What are fines for breaching the GDPR rules - ANS ✔✔€20m fine or 4% annual turnover / €10m
fine or 2% annual turnover
What is under the Information Commissioner's Office (ICO) - ANS ✔✔- GDPR
- Freedom of INformation Act
- Environmental Information Regulations
- Privacy & Electronic communications Regulations
, What is exempt from PSR - ANS ✔✔Payment systems embedded in securities trading
systems/clearing houses/central counterparties (BoE)
Where does money for the PTM come from? - ANS ✔✔- PTM Levy- 100p for each contract for
transactions over £10,000
- charging fees eg. offer documents
What must trustees ensure? - ANS ✔✔- suitability of an investment
- portfolio appropriately diversified
(get advice if needed)
What does not come under the Trustees Act 2000 - ANS ✔✔- authorised unit trusts
-occupational pension schemes
- some schemes under Charities Act
What did the Pensions Act 2004 do in relation to occupational pensions? - ANS ✔✔- Created
the Pensions Regulator (TPR)
- Introduced the Pensions Protection Fund (PPF)
- scheme specific funding requirements
What did the Pensions Act 2008 change? - ANS ✔✔- All employees with minimum £10,000
income pa must be enrolled in a qualifying pension
- Introduced the National Employment Savings Trust (NEST) for anyone who doesn't have a
quality scheme
What are the objectives of the Pensions Regulator (TPR)? - ANS ✔✔- Protect the benefits of
members of occupational pension schemes
- reduce risk of situations arising that could lead to needing PPF
