Topic 21 Flashcards
Vulnerable customers due to financial arrangements being considered
1) those considering Right-to-buy
2) those considering Sale-and-rent-back
3) equity release applicants
Determining suitability of a mortgage…
1) assess whether a mortgage is in itself a suitable product for the client
2) assess what type of mortgage is suitable, for example repayment, interest only, interest scheme, additional features
3) select Best mortgage and mortgage provider to meet clients needs and circumstances
What is meant by committed expenditure?
Repayments on credit agreements or other contractual arrangements
What is meant by basic essential expenditure?
Expenditure on food and other housekeeping costs, utilities, telephone, council tax, buildings insurance, ground rent and service charges for leased properties, and essential travel to work and School
What are the Insurance Conduct of Business Rules?
1) application
2) general matters
3) distance communications
4) information about the firm, its services and remuneration
5) identifying clients needs and advising
6) product information
6a) product specific rules
7) cancellation
8) claims handling
What are the Banking Conduct of Business Rules?
1) application
2) communications with banking customers and financial promotions
2a) restriction on marketing or providing an optional product for which fee is payable
3) distance communications and e-commerce
4) information to be communicated to banking customers and statements of account
5) post sale requirements
6) cancellation
7) information about current account services
8) tools for personal current account customers
What is a Money Remitter?
A payment services provider that accepts funds for payment without necessarily holding an account with either the payee or the payer . It enables one party to send money to another using its services to get the money to the required destination
What is a Non-bank Merchant Acquirer?
A financial institution other than a bank that processes credit or debit card payments
Key requirements of the Standards of Lending Practice
1) product and service design
2) product sale
3) account maintenance and servicing
4) money management
5) financial difficulty
6) consumer vulnerability
7) governance and oversight
What is basic advice?
Basic advice is a limited form of advice that applies to stakeholder products
What is generic, focused and simplified advice?
Generic advice…
- Advice or information that does not relate to a particular product or investment and does not meet the characteristics of regulated advice
- For example ‘for most people that is sensible to have adequate financial protection in place’
Focused advice …
- At the request of the customer, advice and recommendations relate to specific need to investments
- Also referred to a limited advice
Simplified advice …
- Advice that is limited, by the firm providing it, to one or more of the customers needs
- Does not involve analysis of the customers circumstances that are not directly relevant to those needs
- this type of advice may be provided face-to-face, over the phone or online
What is Robo advice?
Robo advisors are a class of financial advisors that provide financial advice or portfolio management online with minimal human interaction
