CeMAP - Certificate in Mortgage Advice and Practice UK Financial Regulation Questions and Answers

Question 1

Which of the following is the primary body responsible for the prudential regulation of banks, building societies, and investment firms in the UK?

Accepted Answer

The Prudential Regulation Authority (PRA)

Answer

The Financial Conduct Authority (FCA)

Answer

The Financial Ombudsman Service (FOS)

Answer

HM Treasury

Question 2

A mortgage adviser is meeting a new client for the first time. Under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, when must the adviser complete identity verification?

Accepted Answer

Before the establishment of a business relationship

Answer

After the mortgage application has been submitted

Answer

At any point before the mortgage completes

Answer

Only if the client is applying for a mortgage over £100,000

Question 3

The FCA's Consumer Duty introduced a new Consumer Principle. What does this principle require firms to do?

Accepted Answer

Act to deliver good outcomes for retail customers.

Answer

Guarantee a positive outcome for all customers.

Answer

Offer the lowest possible price for their products.

Answer

Treat all customers in an identical manner.

Question 4

A client has their mortgage application declined and is unhappy with the advice they received. They raise a formal complaint with the mortgage advice firm, but eight weeks later they have not received a final response. What is the client's next course of action?

Accepted Answer

Refer the complaint to the Financial Ombudsman Service (FOS).

Answer

Wait for the firm to issue its final response, regardless of how long it takes.

Answer

Refer the complaint directly to the Prudential Regulation Authority (PRA).

Answer

Initiate legal proceedings against the adviser in a civil court.

Question 5

The Financial Services Compensation Scheme (FSCS) provides a 'safety net' for customers of authorised financial services firms. What is the maximum level of protection it offers for deposits per person, per authorised firm?

Accepted Answer

£85,000

Answer

£50,000

Answer

£75,000

Answer

£100,000

Question 6

Under the UK General Data Protection Regulation (UK GDPR), which principle requires that personal data collected must be adequate, relevant, and limited to what is necessary for the purpose for which it is processed?

Accepted Answer

Data minimisation

Answer

Integrity and confidentiality

Answer

Storage limitation

Answer

Purpose limitation