Cemap 2 Unit 9

Question 1

Which of the following are covered during the factfind process? Select all that apply

Answer 1

Customer’s income and outgoings
Customer’s employment.
Recommended mortgage product.
Customer’s attitude to interest rate rises.
Customer’s medical history.
Customer’s ideal mortgage term.

Question 2

Which of the following apply once a mortgage application has been submitted? Select all that apply.

Answer 2

The lender is responsible for underwriting the application.

Correct Answer Incorrect Response
The adviser may be required to collect further information or documentation from the customer.

Question 3

Which of the FCA’s Principles for Businesses listed below is of least relevance to the fair treatment of customers?

Answer 3

Principle 10: A firm must arrange adequate protection for clients’ assets when it is responsible for them.

Question 4

Which of the following is true regarding the new Consumer Duty?

Answer 4

It applies to all new and existing contracts with retail customers.

Question 5

The fair treatment of customers means that an adviser:

Answer 5

may recommend a product in which the customer has not expressed an interest.

Question 6

The primary requirement of the advice process is that

Answer 6

the recommendation should be suitable for the customer’s needs

Question 7

If a mortgage adviser asks a customer about the age at which they expect to retire, this is most likely to be so that the adviser can:

Answer 7

recommend an appropriate term for the mortgage

Question 8

The Consumer Duty includes three ‘cross-cutting’ obligations, which develop the overarching expectations from Principle 12. Which of the following is not one of them? Firms must

Answer 8

ensure products provide fair value for customers.

Question 9

The Consumer Duty effectively replaces which Principles for Businesses in relation to a firm’s retail business?

Answer 9

Principles 6 and 7.