topic 21 - conduct of business requirements 2

Question 1

A regulated mortgage is defined as

Answer 1

• The lender provides credit to an individual or trustees
• The contract provides for the obligation of the borrower to repay to be secured on land
• At least 40% of that land is used or intended to be used, as or in connection with a dwelling

Question 2

Consumer buy to let

Answer 2

Where the mortgage has not been entered into wholly or predominantly for the purpose of a business carried out by the borrower

Question 3

A firm must keep a record of non-real-time financial promotions for….

Answer 3

12 months

Question 4

Lenders have 15 working days to write to borrowers …..

Answer 4

who are in arrears with their mortgage (MCOB 13)

Question 5

Basic advice

Answer 5

Limited form of advice that applies to stakeholder products

• Focused on one or more specific need
• Involves use of a set of scripted questions to establish whether a stakeholder product within the firm’s range is suitable for the customer

Question 6

Generic advice

Answer 6

advice/info that does not relate to a particular product or investment. Does not meet the characteristics of regulated advice

Question 7

Focused advice

Answer 7

at the request of the customer, advice and recommendations relate to specific needs or investments

Question 8

Simplified advice

Answer 8

advice that is limited, by the firm providing it, to one or more of a customer’s needs. Does not involve analysis of the customer’s circumstances that are not directly relevant to those needs