LIBF CeMAP (Certificate in Mortgage Advice and Practice)

The Financial Conduct Authority (FCA) derives its powers principally from:

1. AThe Consumer Credit Act 1974 alone, together with the voluntary lending codes issued by the trade associations
2. BThe Mortgage Credit Directive
3. CThe Data Protection Act 2018
4. DThe Financial Services and Markets Act 2000, as amended by the Financial Services Act 2012Correct

Why: FSMA 2000, as amended by the Financial Services Act 2012, established the FCA and sets out its objectives and rule-making powers. The other statutes address specific areas such as credit, mortgages and data protection, but do not constitute the FCA.

Under a capital-and-interest (repayment) mortgage, the borrower's monthly payments:

1. ACover interest only, leaving the capital outstanding at the end of the term
2. BVary directly with the stock market
3. CCover both interest and a portion of the capital, so the balance is cleared by the end of the termCorrect
4. DAre invested in a separate savings plan

Why: A repayment (capital-and-interest) mortgage's payments include both interest and capital, so provided all payments are made the loan is fully repaid by the end of the term. An interest-only mortgage instead leaves the capital to be repaid separately.