Mortgages Knowledge Assessment

Mortgages Knowledge Assessment

General Insurance Knowledge Assessment

Test PaperGI03

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DATE ______RESULT ______

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You are allowed 30 minutes to complete this paper.

The pass mark is 70% overall.

Only one answer is required per question i.e. no multiple answers are required.

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1. Which body is responsible for the Financial Ombudsman Service?

  1. Competitions and Markets Authority
  2. Financial Conduct Authority
  3. Financial Policy Committee
  4. Prudential Regulation Authority

2. What is the advantage of explaining the benefits when making a product presentation to a client?

  1. It enables the adviser to focus on the sale rather than the client queries
  2. It enables the client to better understand how this product will meet his or her needs
  3. It ensures that all point-of-sale FCA regulatory requirements are met
  4. It ensures that the client understands the cancellation rights offered by the product

3. One of the six outcomes for retail consumers in relation to Treating Customers Fairly requires that firms ensure that there are no unreasonable barriers to:

  1. Accessing products, receiving suitable advice, or complaining
  2. Accessing products, switching product or provider, or making a claim
  3. Switching product or provider, receiving suitable advice, or making a claim
  4. Switching product or provider, making a claim, complaining

4. If a customer cancels their general insurance contract within the cooling-off period, the insurance company must return any sums paid to it within how many days?

  1. 7
  2. 14
  3. 28
  4. 30

5. Which of the following is not one of the Financial Conduct Authority’s Principles for Business?

  1. To act with due skill, care and diligence
  2. To act with integrity
  3. To have a clear chain of responsibility
  4. To observe proper standards of market conduct

6. Once an employee of a regulated firm is deemed to be competent, the firm must have arrangements in place for this competence to be maintained. This is most commonly achieved through:

  1. Continuing professional development
  2. Imposed learning courses
  3. In-house tutorials
  4. Regular testing

7. When an adviser makes a recommendation to a client, but the client insists on selecting a different product, the adviser:

  1. cannot proceed and should terminate the process
  2. should record the advice given and ask the client to sign to the effect that they wish to pursue an alternative
  3. should refer the client to a restricted adviser, who is governed by lower suitability requirements
  4. should refer the client to another adviser

8. To meet the FCA definition of independent advice, recommendations must be based on:

  1. a complete analysis of the relevant market
  2. a comprehensive and fair analysis of the relevant market
  3. a comprehensive and inclusive analysis of the whole market
  4. a thorough and fair analysis of the whole market

9. Under the FCA’s complaints-handling requirements, firms must make a commitment to try to resolve complaints within:

  1. Three working days
  2. One month
  3. Eight weeks
  4. Three months

10. When assessing suitability, which of the following factors is not relevant when choosing a solution for the client?

  1. The financial outlay required from the client
  2. The remuneration to the adviser
  3. The state benefits that the client may receive
  4. The timescale over which the product will run
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