Revalidation Test Three 2022

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* 1. Adviser Name?

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* 2. Why is it important to keep in contact with clients between their mortgage events?

To sell them protection

To provide a service and to ensure we keep them as clients in the future

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* 3. What percentage of people in the UK do the FCA believe are currently vulnerable?

23%

33%

43%

53%

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* 4. What are the 4 key categories of vulnerability?

Age, Health, Life Events & Capability

Health, Life Events, Resilience, Capability

Resilience, Capability, Bereavement, Relationships

Age, Ability, Resilience, Events

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* 5. Which of the following scenarios would not usually be an obvious trigger for vulnerability?

A client with reduced income following a switch to a zero hours contract

A financially aware couple buying their first home together

Having to deal with Mrs, because Mr has a poor grasp of the English language

A remortgage in a single name, following a recent divorce

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* 6. If you do not make a protection recommendation to a client, how can this be covered off compliantly? (tick all that apply)

Just verbally is fine, when discussing their mortgage needs

In a Protection Reason Why Letter, by making product recommendations

In your Mortgage Reasons Why Letter, by explaining why the client didn’t want to address protection

In a separate letter, explaining why the client no longer wishes to address protection

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* 7. Which of the following “Life Events” are not normally associated with vulnerability?

Birth of a baby

Divorce

Retirement

Loss of job

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* 8. Which of the following best describes “Financial Capability” in relation to vulnerability?

The ability to carry out day to day tasks

Low ability to withstand financial shock

Low confidence in managing money

Low ability to withstand emotional shock

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* 9. Which charity could we sign-post a client too, where help with debt advice is needed?

Gamble aware

Step change

Samaritans

Mind

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* 10. What do we not currently ask you to add to The Key where a client is potentially vulnerable?

The FCA category of vulnerability

Some detail around why you think the client might be vulnerable

Some detail around what you have done to mitigate the risks around the client’s potential vulnerability

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* 11. Which of the following is not one of the four outcomes under the Consumer Duty principle?

Products & services

Consumer understanding

Consumer support

Cheapest product

Price & value

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* 12. “Making an appropriate recommendation” falls under which one of the cross cutting rules?

Act in good faith towards retail customers

Avoid foreseeable harm to retail customers

Enable and support to achieve objectives

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* 13. How many insurers do we currently have access to, and through whom can we recommend life cover?

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* 14. How many B&C insurers can we recommend products from?

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* 15. How many days do you have to send out your Reasons Why Letter, and upload it to The Key

5 days

10 days

5 working days

10 working days