Conduct Of Business Requirements II Flashcards
A mortgage arranged for which of the following mortgagors would not be a regulated mortgage?
A) Terry and Angel, who are joint borrowers buying their first home.
B) Laszlo and Yuri, who are creating a mortgage in their role as trustees
C) John, who is a sole borrower, trading up to a bigger property
D) Decor plus, which is a public limited company
D) Decor plus, which is a public limited company
Which of the following methods of obtaining new business is not permitted for a regulated mortgage?
A) cold calling
B) mortgage introducers
C) radio advertising
D) TV advertising
A) cold calling
Maurice wants to use the equity in his property by arranging a lifetime mortgage. He wants exactly the same product that his brother has and does not want to waste time considering other options. Why would it not normally be possible for Maurice to proceed on an execution only basis even though he knows exactly what he wants?
Execution only transactions are permitted only for business borrowers, high-net-worth individuals and mortgage professionals.
Even if Maurice were a high-net-worth client, it would not be possible to carry out the transaction on an execution-only basis because it is not possible to opt out of advice for an equity release scheme such as a lifetime mortgage.
Which of the following statements is UNTRUE in relation to the offer document that is produced following a mortgage application.
A) it must contain details of the monthly payments
B) it must state how long the offer is valid for
C) it must explain how the customer can withdraw from the contract once the mortgage is completed.
D) it must be accompanied by an up to date tariff of charges
C) it must explain how the customer can withdraw from the contract once the mortgage is completed.
It is not possible to withdraw from the contract once the mortgage is completed.
When assessing affordability for a mortgage application, which of the following is regarded as committed expenditure?
A) repayments on a personal loan
B) council tax
C) water bills
D) costs of travel to work
A) repayments on a personal loan
The others are seen as basic essential expenditure
To ensure there is no danger of misrepresenting the policy benefits, an advisor must always provide the product information published by the product provider and allow the customer to make their decision on the basis of that information, true or false?
False
ICOBS 6 requires firms to ensure customers are given appropriate information about a policy. What is appropriate may very depending on the customers knowledge, experience, and ability, and the complexity of the product.
Eva has just taken out an income protection policy. If she changes her mind and decides she no longer wants this policy, what cancellation rights dies she have?
Eva may cancel within 30 days as its a protection policy.
The standards of lending practice are an example of self regualtion. True or false?
True
A customer who wishes to buy a stakeholder pension product may receive:
A) focused advice
B) generic advice
C) information only
D) basic advice
D) basic advice
Basic advice maybe given for stakeholder products
What is the key difference between focused advice and simplified advice?
Focussed advice is when the customer has set parameters for the areas they wish to discuss.
Simplified advice is provided when the advisor sets out specific areas of a customers needs for which they are providing advice.
