U3 Topic 9

Question 1

Q2

Which Of The Following, Covering The Fact Find process? Select all that apply.

-Customers, income and outgoings
-customers employment
-Recommended mortgage product
-Customers attitude to interest rate rises
-Customer’s medical history
-Customer’s ideal mortgage term

Answer 1

-Income and outgoings
-Customers employment
-Customers attitude to rate rises
-Customers ideal mortgage term

Question 2

Q4

Complete the sentence

When presenting information about the recommended mortgage product, info should be presented in …… that the Customer can easily …… , without unnecessary use of technical …….

Answer 2

-languange
-understand
-jargon

When presenting information about the recommended mortgage product , information should be presented in language that the customer can easily understand without unnecessary use of technical jargon.

Question 3

Q8

Which of the FCA’s principles for businesses listed below is of least relevance to the fair treatment of customers?

-Principle 2: a firm must conduct its business reduce skill care and diligence
-Principle 6: a firm must pay you regards to the interests of its customers and treat them fairly
-Principle 10: affirm must arrange adequate protection for client assets when it is responsible for them

Answer 3

-Principal 10 a firm must arrange adequate protection for client assets when it is responsible for them

While principle 10 is important, principles 2 and 6 a more directly relevant to the fair treatment of customers.

Question 4

Q10

The fair treatment of customers means that an adviser:

-Must recommend the most appropriate product from the range
-Must always recommend the type of product the customer stated they require
-May recommend a product in which the customer has not expressed an interest

Answer 4

-May recommend a product in which the customer has not expressed an interest

If the advisor does not have a suitable product within the range they offer, no recommendation should be made. In doing what is best for the client, the advisor may recommend a product entirely different from the one that they expressed interest.

Question 5

Q15

The consumer duty includes free cross cutting obligations, which develop the overarching expectations from principle 12.
Which of the following is not one of them?

-Act in good faith towards retail customers
-Avoid causing foreseeable harm to customers
-Ensure products provide fair value for customers

Answer 5

-Ensure product provide fair value for customer

The requirement for a firm to ensure products provide fair value for customers is a consumer duty outcome rather than cross cutting obligation.