UK financial regulation (FCA & MCOB)
57 practice questions with explanations — 15 free to try
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PassNova has 57 CeMAP — Mortgage Advice practice questions on UK financial regulation (FCA & MCOB), each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
UK financial regulation (FCA & MCOB): example questions & answers
3 worked examples with answers and explanations below. Try 15 CeMAP — Mortgage Advice questions free in the browser; the full 57-question UK financial regulation (FCA & MCOB) bank is part of PassNova Premium.
Which body is the statutory regulator responsible for the conduct of firms providing regulated mortgage advice in the UK?
- AThe Prudential Regulation Authority (PRA)
- BThe Financial Conduct Authority (FCA)✓
- CThe Financial Ombudsman Service (FOS)
- DThe Bank of England
Answer: The FCA is the conduct regulator for retail financial services, including regulated mortgage advice. The PRA prudentially regulates larger firms, while the FOS resolves complaints rather than supervising conduct.
Which FCA sourcebook sets out the detailed conduct rules for firms carrying out regulated mortgage activities?
- ACOBS (Conduct of Business Sourcebook)
- BMCOB (Mortgages and Home Finance: Conduct of Business)✓
- CICOBS (Insurance Conduct of Business Sourcebook)
- DSYSC (Senior Management Arrangements, Systems and Controls)
Answer: MCOB contains the conduct rules specific to regulated mortgage contracts and home finance. COBS covers investments and ICOBS covers general insurance.
What is the primary purpose of the FCA's 'Treating Customers Fairly' principle in mortgage advice?
- ATo remove the firm's obligation to assess whether a mortgage is affordable for the borrower
- BTo guarantee customers the lowest possible interest rate
- CTo allow firms to place their own commission income ahead of the interests of the client
- DTo ensure fair outcomes for consumers are central to a firm's culture and conduct✓
Answer: Treating Customers Fairly requires firms to embed fair consumer outcomes in their culture and processes. It does not guarantee specific rates and does not reduce affordability or suitability obligations.