U3 Topic 8 Flashcards
Q2
Which of the following are requirements for initial disclosure information on a new mortgage? Select all that apply?
-A list of lenders his products the firm offers if it does not offer an unlimited service
-The exact fee that the firm will charge and when it’s payable
-Details of appropriate mortgage products
-An assessment of the appropriateness of alternative finance options
-The exact amount of any commission the firm will be paid by the lender
-The list of lenders products offered if not unlimited service
-An assessment of appropriateness of alternative finance options
-exact amount of commission firm paid by lender
The firm can provide an exact fee if known but can provide an indication of how the fees would work if a figure is not shown .
There is no requirement to provide any product details at this stage because no advice has been given .
The client must be made aware of potential alternative finance options, but there is no requirement to assess their appropriateness.
Q3
Which of the following statements are true of execution? Select all that apply.
-A firm can offer execution only as a standard
-Execution only may be provided at Customer’s request
-Records of execution only sales must be kept for 12 months from the start of contract
-Execution only is only permitted when there is no interactive dialogue between the firm and the customer during the sale
-Not permitted to proceed on an execution only basis may reject the advice given and opt for another product
-execution only may be provided at the customers request
-Execution only is permitted when there is no interactive dialogue between firm and Customer during sale
-Not permitted to proceed on execution only basis may reject advice given and opt for another product
A firm cannot offer execution only as a standard service, but it may do so at the customers request if the customer meets the criteria.
Records of execution only sales must be kept for 36 months .
Q4
When advising on MCD regulated mortgage, the lender or intermediary must provide the customer with:
-A suitability report outlining the product detail details and reasons for the recommendation
-An adequate explanation of the recommended product
-A key features illustration explaining how the products works.
-An adequate explanation of the recommended product
Suitability reports do not apply to mortgages.
Care buyers are given as part of the pre-application requirements for for regulated (non-MCD) mortgages.
Q7
Argos mortgages ltd offers MCD regulated mortgages but wishes to use KFIs rather than ESIS. Is it true to say that Argos mortgages ltd:
-Can continue to issue the standard KFI
-Cannot use a KFI for MCD regulated mortgages
-Must provide ESIS top up if it issues or KFI
-Cannot use a KFI for MCD regulator mortgage mortgages
The information provided for an MCD regulated mortgage must follow a prescribed format through an ESIS.
Q8
For how long from the date of a customer’s mortgage application must firm keep a record of a KFI or ESIS?
-One year
-Three years
-Five years
-One year
A firm must keep a record of the key features illustration or an ESIS for one year from the date of a customer’s mortgage application thank you
Q9
Which of the following statements applied to an offer document for a mortgage credit director regulated mortgage? Select all the apply.
-The document is an FCA prescribed format
-The offer is is subject to a seven day reflection period for client
-The offer cannot be withdrawn by the lender under any circumstances
-The document must state the period for which that offer is valid
-The document must state the period for which they offer is valid
-The documents must state what would happen if the customer did not go ahead with the mortgage
-The document must state the type amount of maturity date of any investment vehicles used to repay the mortgage
-Offer is subject to 7 day reflection period for client
-Document must state period for which offer is valid
-Document must state what would happen if Customer did not go ahead with the mortgage
There is no prescribed formats for the document but certain key information is required.
Are they described as a binding offer? There are circumstances Linda can withdraw the offer e.g. lying on application or property not worth value.
The document must confirm the customers repayment strategy but does not require details of investment
Q10
MCOB 7 covers the disclosure requirements at the start of a new mortgage contract at what point must the required information be provided to the borrower?
-On execution of the mortgage deed
-Within 14 days of the execution of the mortgage deed
-Before the first mortgage payment is made
-Before the first mortgage payment is made
Q11
Which of the following is true in all circumstances in relation to unsolicited real financial promotions?
-Contacts cannot be made on a unlisted telephone number
-They can only be made to existing customers
-They can be made to any person who is on the company mailing list
-They cannot be made as an on social hour
-They can be only made to exist in Customer
Unsolicited real-time financial promotions could be made at an unsocial hour or an unlisted number if the customer has previously agreed to it and could be made to a person on mailing list if they are an existing customer.
Q20
The offer document must include details of the amount and dates of the initial and subsequent repayments due. true or false ?
-False
This information must be provided before the first payment is made on a new mortgage a further advance or a variation to the terms of a mortgage .
