CeMAP – Unit 2 – Mock Exams

Which regulatory body is responsible for:

1. Protecting and enhancing Monetary and Financial Stability
2. Maintaining Economic Stability

The FCA has one strategic objective which is:

The FCA has several powers that it can enforce on financial firms such as:

(Select all that apply)

What are the 3 Main Components of the Senior Management Regime & Certification Regime?

There are two types of financial promotions:

Select 2 answers

Which one of the following not covered by the FCA’s “fit and proper” test?

Which one of the following is considered an unstructured Continued Personal Development activity?

If someone has information that is not available to other investors and then uses that information for personal gain, what is this called?

What should the initial disclosure document include?

Select all that apply.

What is the cooling-off period for pension policies?

What is the cooling-off period for general insurance policies?

Basel III requires banks to reach a minimum solvency ratio of:

Financial advisers must keep records of their advice:

Which one of the following mortgage arrangements is outside FCA regulation?

If someone knowingly provides false or misleading information to influence the price of a share, product, commodity or currency for personal gain, this is called:

A suitability report must be provided for which types of mortgage, if any?

The reforms to The Consumer Credit Act offered better protection and create a fairer and more competitive credit market. The reformed Consumer Credit Act 2006 resulted in better protection for:

A regulated mortgage, subject to MCOB is defined as a contract that satisfies which one of the following conditions?

The rules relating to financial promotions state that unsolicited visits or calls can only be made at ‘an appropriate time of the day’ this is between:

Which of the following are considered Non-Real Time Financial Promotions?

Jay and Lucy currently have a mortgage. They have recently received written advice asking them to check the performance of their repayment vehicle. This suggests that:

Under the General Data Protection Regulation (GDPR) – who processes personal data on behalf of the ‘legal person’ who determines the purpose for which data is processed?

Lisa recently paid £1,000 for third party car insurance and the insurance company then went out of business resulting in Lisa losing the £1,000. How much compensation (if any) would Lisa be entitled to from the FSCS.

The maximum compensation the FOS can award for complaints about acts or omissions by firms on or after 1 April 2020 is:

Samantha previously worked in a pension transfer business. She left the job in August 2021, when can the firm destroy Samantha’s training and competence records?

Nicky previously worked in a MiFID business. She left the job in May 2021, when can the firm destroy Nicky’s training and competence records?

What is the maximum penalty under The Bribery Act 2010?

Which of the following is not correct in relation to the Bribery Act 2010?

Which of the following are the Financial Conduct Authority’s Principles for Businesses that firms must comply with?

Matthew is a senior manager at a large firm but he has been found guilty of reckless misconduct (in court). Matthew could face a prison sentence of up to:

Dispute resolution can involve:

What is the maximum penalty for breaching the GDPR data protection regulations?

Which one of the following is not part of the Fit & Proper Test Criteria?

Under Prudential Supervision what are the main risks to Financial Services Consumers?

There are 3 categories of clients identified in the Conduct of Business Sourcebook, these are:

There are 2 types of advisors identified in the Conduct of Business sourcebook, these are:

When would a financial advisor submit a form to the company’s money laundering reporting officer (MLRO)?

Which government department is responsible for the regulation of financial services under the direct authority of the Chancellor of the Exchequer?

What is the purpose of stress testing?

Suitability reports are required for:

Advisers who advise on packaged products must provide a Key Features document:

If a customer invests a lump sum into a unit-linked investment and then cancels the policy within the cooling-off period, how much of their initial investment would they be refunded (if any)?

A financial adviser is selling a product to a client on an ‘execution-only’ basis, what does this mean?

When is cold calling permitted for mortgage contracts?

Which of the following products can be classified as Packaged Retail and Insurance-based Investment Products (PRIIPS) ?

Someya had £20,000 in her bank account and then sold her house for £400,000. As the house was mortgage-free she received the full amount in her bank account which made the total balance £420,000. Someya had planned to use the proceeds of the sale to purchase another house. If the bank becomes insolvent or defaults, how much money would the FSCS be able to compensate Someya?

Where the complaint relates to MiFID business, records should generally be kept for:

Liquidity risk is:

Individuals that have a role where it’s possible for them to cause ‘significant harm’ to the firm or its clients must be approved by:

Under the Senior Management Regime & Certification Regime any disciplinary action or any breaches of the code of conduct by a senior manager must be reported to the FCA: