CH1 Flashcards

1
Q

What are Regulated mortgage activities/authorised persons/subject to MCOB?

A

mortgage lending, advice, arranging and administration

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2
Q

When is a firm exempt from regulation?

A

If has contract with authorised person which it can only advise on their products (appointed representative)

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3
Q

What is a regulated mortgage contract?

A
  • provides credit to individual
  • at least 40% used as dwelling
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4
Q

What mortgages are not regulated?

A
  • business BTL
  • loan to company
  • loan for purchase of commercial property
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5
Q

What are promotions subject to MCOB?

A
  • advertisements
  • calls
  • personal visits
  • presentations to groups
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6
Q

What promotions does MCOB not apply to?

A
  • Letters and illustrations to just one customer
  • Simple promotions containing only name of product, firms name, contact, logo & brief factual details
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7
Q

When must an ESIS be provided to customer

A

Before application

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8
Q

What is APR?

A

Way of comparing similar costs of mortgages inc setting up fees/charges as well as actual interest rate
Must be calculated inc; rate of interest charged, other setting up charges payable, premiums for insurance required by firm

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9
Q

What is APRC?

A

Amount of interest applied on annual basis
Inc additional expenses/discount inc how much time left on mortgage term

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10
Q

If firm aware customer has gone into arrears, what must they provide

A
  • Fact Sheet on mortgage areas within 15 working days
  • Written policy & procedures
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11
Q

When does an intermediary not need to have PII?

A
  • Can rely on guarantee of assets > £10m
  • Subsidiary of bank, building society or insurance company
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12
Q

If firm holds money on behalf of client, what must they do?

A
  • Hold in separate client bank account
  • Banked within 1 day of receiving
  • Interest belongs to customer
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