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FSMA Kredietbemiddeling practice questions

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Question 1Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which Belgian authority maintains the public register of registered credit intermediaries?

  1. The European Banking Authority
  2. The National Bank of Belgium
  3. The Ministry of Finance
  4. The FSMA Correct answer.

Explanation

The FSMA is the Belgian market authority responsible for the registration and ongoing supervision of credit intermediaries. It keeps the public register in which every registered intermediary and its agents must appear before they may lawfully act.

Question 2Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the principal legal instrument governing the registration and supervision of Belgian credit intermediaries?

  1. The Consumer Credit Act of 1991
  2. The Mortgage Credit Act of 2014
  3. The Law of 22 March 2006 on credit intermediation Correct answer.
  4. The Anti-Money Laundering Act of 2017

Explanation

The Law of 22 March 2006 on the intermediation in banking and investment services, as amended by the mortgage credit framework, sets out the registration conditions and supervisory regime for credit intermediaries. The other instruments regulate specific products or specific obligations rather than the intermediary registration regime itself.

Question 3Regulatory framework for credit intermediaries (FSMA registration and supervision)

Before an intermediary may start credit intermediation activities in Belgium, what must it obtain?

  1. A prior registration with the FSMA Correct answer.
  2. A commercial court registration
  3. A banking licence from the ECB
  4. A consumer ombudsman certification

Explanation

Credit intermediation is a regulated activity that requires prior registration with the FSMA before any activity is carried out. Operating without that registration is an offence and can lead to criminal and administrative sanctions.

Question 4Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which type of person is required to register as a credit intermediary when acting in the course of business?

  1. A natural or legal person who presents or proposes credit agreements to consumers Correct answer.
  2. A notary drafting a mortgage deed
  3. A consumer who merely compares loan offers online
  4. A bank teller executing a payment order

Explanation

The regime targets any natural or legal person who, in return for remuneration, presents or proposes credit agreements, assists consumers in preparatory steps, or concludes such agreements on behalf of a lender. Purely personal activity by a consumer falls outside the scope.

Question 5Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary's employees who deal directly with consumers and propose credit agreements are best described as:

  1. Agents who must be disclosed to the FSMA Correct answer.
  2. External auditors of the intermediary
  3. Independent intermediaries requiring their own registration
  4. Unregulated support staff

Explanation

Staff who personally contact consumers to propose or conclude credit agreements are treated as tied agents or contact points whose identity must be notified to the FSMA and linked to the registered intermediary. Their activity is covered by the intermediary's registration and supervision rather than by a separate licence.

Question 6Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which of the following is a standard condition for obtaining FSMA registration as a credit intermediary?

  1. Having a clean criminal record and professional integrity Correct answer.
  2. Owning office premises in Brussels
  3. Being a member of a trade federation
  4. Holding a minimum share capital of one million euros

Explanation

Applicants must demonstrate professional integrity, typically evidenced by an extract from the criminal record, together with the required professional knowledge and adequate financial capacity. Capital thresholds of the kind described apply to credit institutions, not to intermediaries.

Question 7Regulatory framework for credit intermediaries (FSMA registration and supervision)

What professional knowledge requirement applies to a credit intermediary's management and consumer-facing staff?

  1. Only a university degree in law is accepted
  2. Adequate knowledge of credit products and relevant consumer protection rules Correct answer.
  3. Knowledge limited to anti-money laundering rules
  4. No knowledge requirement applies to intermediaries

Explanation

The intermediary must ensure that management and staff who deal with consumers possess adequate knowledge of the credit products offered and of the applicable consumer protection and mortgage credit rules. This is usually demonstrated through training or examinations recognised for the sector.

Question 8Regulatory framework for credit intermediaries (FSMA registration and supervision)

A registered intermediary wishes to use a sub-agent to contact consumers on its behalf. What is the correct approach?

  1. The sub-agent must be notified to the FSMA and meet the same integrity conditions Correct answer.
  2. The sub-agent may act freely without any notification
  3. The sub-agent must obtain a separate banking licence
  4. The sub-agent's activity is outside the intermediary regime

Explanation

Persons acting as tied agents or sub-agents on behalf of a registered intermediary must be disclosed to the FSMA and satisfy integrity and knowledge requirements. The registered intermediary remains responsible for their conduct towards consumers.

Question 9Regulatory framework for credit intermediaries (FSMA registration and supervision)

How is the FSMA register of credit intermediaries made accessible to the public?

  1. Through the commercial court gazette only
  2. Only on written request to the Ministry of Finance
  3. Through a publicly consultable register maintained by the FSMA Correct answer.
  4. Through the lenders' internal records

Explanation

The FSMA maintains a public register listing registered credit intermediaries and their agents, allowing consumers to verify whether a person is authorised. Consulting the register is a key consumer protection tool before entering into a credit relationship.

Question 10Regulatory framework for credit intermediaries (FSMA registration and supervision)

What must an intermediary do when it changes its registered address or legal form?

  1. Wait for the next five-year review
  2. Nothing, as registration covers any change automatically
  3. Apply for a new banking licence
  4. Notify the FSMA and update its registration data Correct answer.

Explanation

Registered intermediaries must inform the FSMA of changes to the information on which their registration is based, such as address, legal form or management. The register must reflect the actual situation so that consumers and supervisors rely on accurate data.

Question 11Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which conduct rule applies when an intermediary presents a credit agreement to a consumer?

  1. The intermediary may promise guaranteed approval of the loan
  2. The intermediary must provide fair, clear and not misleading information Correct answer.
  3. The intermediary may remain silent about the total cost of credit
  4. The intermediary may charge undisclosed fees

Explanation

Intermediaries must act honestly, fairly and professionally and provide information that is fair, clear and not misleading, including on costs and the nature of the service. Promising guaranteed approval or hiding fees breaches these conduct standards.

Question 12Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary charges a fee to the consumer for its services. What disclosure obligation applies?

  1. The fee must be disclosed before the service is provided and in a clear manner Correct answer.
  2. The fee may be disclosed orally without any record
  3. The fee may be disclosed only after the credit agreement is signed
  4. The fee need not be disclosed if the lender also pays a commission

Explanation

Where the intermediary charges a fee to the consumer, it must inform the consumer of the amount and the basis of the fee before the service is provided, in a clear and understandable way. Disclosure after the fact undermines informed consent.

Question 13Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the consequence for an unregistered person who carries out credit intermediation?

  1. The activity becomes lawful after one month
  2. Criminal and administrative sanctions may be imposed Correct answer.
  3. The lender automatically obtains a licence
  4. No consequence if the consumer does not complain

Explanation

Carrying out credit intermediation without registration is prohibited and can give rise to criminal penalties and administrative measures imposed by the FSMA. The absence of a consumer complaint does not cure the illegality.

Question 14Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which supervisory power does the FSMA hold over registered credit intermediaries?

  1. Granting or withdrawing registration and imposing administrative fines Correct answer.
  2. Appointing the intermediary's commercial director
  3. Approving each individual credit agreement
  4. Setting the interest rates lenders may charge

Explanation

The FSMA can grant, suspend or withdraw registration and impose administrative sanctions where the rules are breached. It supervises compliance with the registration and conduct framework rather than setting prices or approving individual contracts.

Question 15Regulatory framework for credit intermediaries (FSMA registration and supervision)

A registered intermediary is convicted of fraud. What is the most likely supervisory response?

  1. No action because registration is permanent
  2. A review of fitness that may lead to suspension or withdrawal of registration Correct answer.
  3. Automatic promotion to a higher registration category
  4. Transfer of the registration to another company

Explanation

Professional integrity is a continuing condition of registration, so a fraud conviction triggers a fitness review that may result in suspension or withdrawal. Registration is not a permanent entitlement independent of conduct.

Question 16Regulatory framework for credit intermediaries (FSMA registration and supervision)

What does the 'passport' regime allow for a credit intermediary registered in another EEA state?

  1. It replaces the need for any registration anywhere in the EEA
  2. It allows free cross-border provision of services or establishment under conditions Correct answer.
  3. It permits the intermediary to issue its own credit
  4. It applies only to Belgian nationals

Explanation

The passport mechanism allows an intermediary lawfully registered in one EEA state to provide services in another, or to establish a presence there, subject to notification procedures and host-state rules. It does not dispense with registration altogether.

Question 17Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which record-keeping duty applies to a registered credit intermediary?

  1. Records of services and communications must be kept for the required period Correct answer.
  2. Only marketing materials must be retained
  3. Records may be destroyed immediately after each meeting
  4. Records must be sent monthly to the European Commission

Explanation

Intermediaries must keep adequate records of the services provided and of their communications with consumers for the period required by the applicable rules. These records support supervision and the handling of complaints.

Question 18Regulatory framework for credit intermediaries (FSMA registration and supervision)

How should an intermediary handle a complaint from a consumer about its services?

  1. Handle it through an accessible and documented complaints procedure Correct answer.
  2. Ignore the complaint if the loan was approved
  3. Require the consumer to waive any further claim
  4. Refer all complaints directly to the European Central Bank

Explanation

Intermediaries must have an accessible complaints procedure and handle complaints diligently and transparently, keeping a record of the process. Consumers must also be informed about the possibility of escalation to the competent ombudsman service.

Question 19Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which statement best describes the relationship between a credit intermediary and the lender it works with?

  1. The intermediary has no legal relationship with the lender
  2. The intermediary always acts as an independent adviser with no lender link
  3. The intermediary acts on behalf of the lender and must disclose this relationship Correct answer.
  4. The intermediary becomes the lender once the agreement is signed

Explanation

A credit intermediary presents or concludes credit agreements on behalf of one or more lenders, and this relationship must be transparent to the consumer. Where the intermediary is tied to a lender, that link must be disclosed so the consumer understands the nature of the service.

Question 20Regulatory framework for credit intermediaries (FSMA registration and supervision)

What does the 'adequate financial capacity' condition aim to ensure for an intermediary?

  1. That the intermediary can fund large lending volumes
  2. That the intermediary holds a banking licence
  3. That the intermediary can pay consumer penalties
  4. That the intermediary can meet its obligations and operate soundly Correct answer.

Explanation

The financial capacity condition is designed to ensure that the intermediary can operate soundly and meet its obligations, including potential liabilities arising from its activity. It is distinct from the capital requirements imposed on credit institutions.

Question 21Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which activity falls outside the scope of credit intermediation regulation?

  1. Assisting a consumer in preparatory steps for a loan application for remuneration
  2. Proposing a mortgage credit agreement to a consumer for a commission
  3. Concluding a credit agreement on behalf of a lender
  4. Publishing general financial education articles without advising on specific credit Correct answer.

Explanation

General financial education that does not present or propose specific credit agreements and is not remunerated for intermediation falls outside the regulated activity. The regulated scope covers presenting, proposing, assisting with or concluding credit agreements for remuneration.

Question 22Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the purpose of the FSMA's thematic reviews of credit intermediaries?

  1. To replace the registration procedure
  2. To assess compliance with conduct rules across the sector and identify risks Correct answer.
  3. To approve the appointment of intermediaries' auditors
  4. To set the maximum interest rate for consumer loans

Explanation

Thematic reviews allow the FSMA to examine how a sample of intermediaries applies specific conduct rules, to identify sector-wide risks and to issue guidance or take follow-up action. They complement individual supervision and do not replace registration.

Question 23Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary advertises a loan with a headline rate but omits mandatory cost information. What rule is breached?

  1. The advertising must be fair, clear and not misleading, including on costs Correct answer.
  2. Only the lender is responsible for advertising content
  3. The intermediary may omit costs if the rate is low
  4. Advertising is entirely outside the FSMA's remit

Explanation

Advertising and marketing by intermediaries must be fair, clear and not misleading, and must not obscure essential cost information. Misleading advertising can trigger supervisory action against the intermediary responsible for it.

Question 24Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which best describes the FSMA's approach to 'fit and proper' assessment of intermediary management?

  1. It assesses integrity, competence and independence from conflicts Correct answer.
  2. It assesses only academic qualifications
  3. It delegates the assessment to the lender
  4. It assesses only the financial statements

Explanation

The fit and proper assessment considers the integrity, professional competence and independence of the persons managing the intermediary, including the absence of conflicts of interest. Academic titles alone do not satisfy the test.

Question 25Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which statement about the FSMA's power to suspend a registration is correct?

  1. Suspension may only be decided by the lender
  2. Suspension automatically terminates the intermediary's contracts with consumers
  3. Suspension can be ordered as a precautionary measure when rules are breached Correct answer.
  4. Suspension requires a prior criminal conviction in all cases

Explanation

The FSMA may suspend a registration as a precautionary or sanctioning measure when it finds a breach of the applicable rules or a threat to consumer interests. Suspension does not automatically void existing credit agreements.

Question 26Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which legal instrument sets out the core conditions and obligations that a credit intermediary must satisfy to be registered with the FSMA in Belgium?

  1. The Law of 22 March 2006 on credit intermediation and the royal decree implementing it Correct answer.
  2. The FSMA's internal staff handbook on market supervision
  3. The Companies Code provisions on commercial agents
  4. The Consumer Credit Directive transposed only into the Civil Code

Explanation

Credit intermediation in Belgium is governed by the Law of 22 March 2006 and its implementing royal decree, which together define the registration conditions, conduct rules and supervision framework. The FSMA applies these texts when assessing applications and monitoring registered intermediaries. Other codes do not create the registration regime for intermediaries.

Question 27Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the primary role of the FSMA in relation to credit intermediaries?

  1. Insuring consumers against default on credit agreements
  2. Regulating and supervising access to the profession and ongoing conduct Correct answer.
  3. Granting credit directly to consumers alongside banks
  4. Setting the interest rates charged by lenders

Explanation

The FSMA is a supervisory authority: it controls entry into the profession through registration and monitors compliance with conduct and organisational rules afterwards. It does not lend, set prices or provide insurance. Its mandate is prudential-conduct supervision of the intermediation market.

Question 28Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary's registration application is incomplete. What does the FSMA normally do in that situation?

  1. Forward the file to the lender for a decision
  2. Grant provisional registration automatically for one year
  3. Treat the file as admissible and complete it later at its own discretion
  4. Declare the application inadmissible and request the missing documents Correct answer.

Explanation

The FSMA examines whether a file is complete and admissible before assessing the substantive conditions. If documents are missing it declares the application inadmissible and invites the applicant to complete it. Registration is only granted once a complete and compliant file is on record.

Question 29Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which body decides on appeals against certain FSMA decisions concerning credit intermediaries?

  1. The Market Court, following the statutory appeal route Correct answer.
  2. The Brussels Commercial Court in first instance
  3. The National Bank of Belgium's sanction committee
  4. The European Banking Authority directly

Explanation

Supervisory decisions taken by the FSMA can be challenged through the appeal mechanism provided by law, which leads to the Market Court. This ensures judicial review of administrative decisions. The other bodies listed do not hear such appeals.

Question 30Regulatory framework for credit intermediaries (FSMA registration and supervision)

What type of register does the FSMA maintain for credit intermediaries?

  1. A register kept by the Ministry of Finance rather than the FSMA
  2. A register that only records intermediaries that have been sanctioned
  3. A confidential internal list accessible only to lenders
  4. A public register listing registered intermediaries and relevant details Correct answer.

Explanation

The FSMA maintains a public register of registered credit intermediaries so that consumers and lenders can verify who is authorised. It contains the identification details required by law. It is not confidential and does not list only sanctioned parties.

Question 31Regulatory framework for credit intermediaries (FSMA registration and supervision)

A consumer checks the FSMA register and cannot find the firm that is offering to arrange a loan. What is the correct conclusion?

  1. The firm is not registered and therefore may not carry out credit intermediation Correct answer.
  2. The firm may lawfully intermediate without appearing in the register
  3. The firm is authorised because it works with a registered lender
  4. The firm is registered but opted for confidential treatment

Explanation

Registration is a precondition for lawfully carrying out credit intermediation, and the public register is the reference point for verifying it. A firm absent from the register lacks the required authorisation. Working with a lender does not substitute for its own registration.

Question 32Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which of the following best describes the scope of the registration obligation for credit intermediaries?

  1. It covers only intermediaries working for a single lender
  2. It covers only intermediaries operating online
  3. It covers persons who, in the course of their business, conclude or assist in concluding credit agreements with consumers Correct answer.
  4. It covers only intermediaries who charge fees to consumers

Explanation

The registration obligation attaches to the professional activity of intermediating credit for consumers, whether by presenting, proposing or assisting in the conclusion of agreements. It is not limited by fee model, distribution channel or number of lenders. Charging no fee or operating offline does not remove the obligation.

Question 33Regulatory framework for credit intermediaries (FSMA registration and supervision)

What does the FSMA assess when it evaluates whether an intermediary's directors are 'fit and proper'?

  1. Only their formal diplomas in finance
  2. Only their personal credit score
  3. Their professional integrity, competence and absence of relevant convictions Correct answer.
  4. Only their nationality and residence status

Explanation

The fit-and-proper test combines integrity and professional competence, including checks on relevant criminal convictions or professional bans. It is a holistic assessment, not a box-ticking exercise on diplomas alone. Personal wealth or nationality are not the criteria.

Question 34Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary's sole director is convicted of embezzlement. How does this affect the intermediary's registration?

  1. It converts the registration into a temporary one for six months
  2. It may lead the FSMA to withdraw or suspend the registration because the fit-and-proper condition is no longer met Correct answer.
  3. It automatically transfers the registration to another employee
  4. It has no effect because the conviction is personal to the director

Explanation

Registration depends on continuous compliance with the fit-and-proper condition for management. A relevant conviction undermines that condition and can justify suspension or withdrawal. The FSMA assesses the seriousness and relevance of the facts before deciding.

Question 35Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which requirement applies to the professional knowledge of staff who deal directly with consumers on credit products?

  1. They must be registered individually in their own name
  2. They must hold a university degree in law
  3. They must demonstrate appropriate knowledge and competence for the products they discuss Correct answer.
  4. They must have at least five years of banking experience

Explanation

Consumer-facing staff must possess knowledge and competence appropriate to the credit products they present, covering product features, costs and consumer obligations. The requirement is proportionate and product-related rather than tied to a specific diploma. Individual registration and fixed years of experience are not the test.

Question 36Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the purpose of the continuous professional training obligation for registered intermediaries?

  1. To generate revenue for approved training providers
  2. To satisfy lenders' internal marketing targets
  3. To replace the initial registration assessment
  4. To keep staff knowledge current as products, costs and rules evolve Correct answer.

Explanation

Ongoing training ensures that intermediaries and their staff maintain and update the knowledge needed to advise consumers correctly as products and regulation change. It complements, rather than replaces, the initial competence assessment. Its purpose is consumer protection, not commercial or fiscal goals.

Question 37Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary wants to change the scope of its registration to include mortgage credit in addition to consumer credit. What should it do?

  1. Ask the lender to add the activity to its own banking licence
  2. Begin offering mortgage credit immediately and notify the FSMA afterwards
  3. Apply to the FSMA to extend its registration before carrying out the new activity Correct answer.
  4. Wait for the next periodic review of the register

Explanation

The registration defines the activities an intermediary may perform, so extending scope requires a prior application to the FSMA covering the additional conditions. Carrying out a new activity before authorisation is a breach. Third parties cannot extend an intermediary's registration.

Question 38Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which statement correctly describes the 'European passport' for a credit intermediary registered in another EEA state?

  1. It replaces the need for any registration in the home state
  2. It allows the intermediary to open branches anywhere without any notification
  3. It allows the intermediary to provide services in Belgium after completing the notification procedure through its home regulator Correct answer.
  4. It applies only to lenders and not to intermediaries

Explanation

The passport mechanism lets an intermediary registered in one EEA state operate in another, provided the cross-border notification procedure is followed via the home authority. It does not abolish the home-state registration or allow unannounced establishment. It applies to intermediaries as well as lenders where the framework provides.

Question 39Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary registered in another EEA state notifies its intention to serve Belgian consumers. Which authority is primarily responsible for supervising its ongoing conduct?

  1. The home-state authority, with the FSMA able to act within the coordination framework for cross-border cases Correct answer.
  2. Only the home-state authority, with the FSMA playing no role
  3. Only the FSMA, because the consumer is in Belgium
  4. The European Commission directly

Explanation

Under passporting, the home authority remains the primary supervisor, while the host authority such as the FSMA cooperates within the cross-border coordination framework and can intervene where host-state rules apply. Supervision is shared rather than exclusive to one side. The Commission does not supervise individual firms.

Question 40Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the main aim of the conduct-of-business rules that registered intermediaries must follow?

  1. Ensuring fair, clear and non-misleading treatment of consumers Correct answer.
  2. Standardising the interest rates offered across the market
  3. Maximising the volume of credit sold each quarter
  4. Protecting lenders against competition from other lenders

Explanation

Conduct rules exist to ensure consumers are treated fairly and receive clear, accurate information before committing to credit. They govern disclosure, advice and advertising rather than sales volumes or pricing. Competition and rate-setting are outside their purpose.

Question 41Regulatory framework for credit intermediaries (FSMA registration and supervision)

Before a consumer signs a credit agreement, what must the intermediary ensure regarding information?

  1. That the consumer pays a deposit to the intermediary
  2. That the consumer receives the required pre-contractual information in a clear and understandable form Correct answer.
  3. That the consumer provides a guarantor for every agreement
  4. That the consumer waives the right of withdrawal in writing

Explanation

Pre-contractual disclosure is a core conduct obligation: the consumer must receive the mandatory information on the credit, its cost and the associated risks in a clear and comprehensible form before signing. Waivers, deposits and guarantors are separate matters that cannot be imposed as a condition of information.

Question 42Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary advises a consumer to take a loan that is clearly unsuitable given the consumer's stated income and existing debts. Which principle is most directly engaged?

  1. The advertising approval regime
  2. The duty to act in the consumer's best interest and provide suitable advice Correct answer.
  3. The intermediary's obligation to maximise its commission
  4. The lender's capital adequacy requirement

Explanation

Intermediaries must act honestly and professionally in the consumer's best interest, which includes assessing suitability where advice is given. Recommending credit the consumer cannot reasonably repay breaches that duty. Capital rules and commission interests are not the governing principle.

Question 43Regulatory framework for credit intermediaries (FSMA registration and supervision)

What does the obligation to disclose the intermediary's remuneration aim to achieve?

  1. To allow the lender to set the intermediary's commission unilaterally
  2. To let the consumer understand the cost and any conflicts of interest linked to the intermediation Correct answer.
  3. To replace the pre-contractual information on the credit itself
  4. To exempt the intermediary from the duty of advice

Explanation

Transparency about how and by whom the intermediary is paid helps consumers understand the cost of intermediation and any potential conflict of interest. It complements, rather than replaces, disclosure about the credit product. It does not remove any advisory duty.

Question 44Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary fails to comply with a conduct rule. Which range of measures may the FSMA take?

  1. Only criminal prosecution by the public prosecutor
  2. Only informal telephone guidance
  3. Administrative measures and, where warranted, sanctions such as fines or suspension Correct answer.
  4. Automatic loss of the lender's banking licence

Explanation

The FSMA can use a graduated toolkit, from administrative measures and warnings to formal sanctions including fines and suspension or withdrawal of registration. Criminal prosecution is a separate track and does not replace administrative action. A lender's licence is unaffected by an intermediary's breach.

Question 45Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the main purpose of the FSMA's on-site inspections of credit intermediaries?

  1. To replace the annual accounts audit
  2. To set the intermediary's commission structure
  3. To verify in practice that the intermediary complies with its legal and conduct obligations Correct answer.
  4. To help the intermediary increase its sales

Explanation

On-site inspections allow the FSMA to check documents, procedures and actual practices against the legal requirements. They are a supervisory verification tool, not a commercial consultancy. They do not set remuneration or substitute for statutory audits.

Question 46Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary refuses to provide documents requested by the FSMA during an investigation. What is the likely consequence?

  1. No consequence, because cooperation is voluntary
  2. The FSMA may use its enforcement powers, including administrative measures or sanctions Correct answer.
  3. The request is automatically transferred to the lender
  4. The registration is renewed automatically

Explanation

Registered intermediaries must cooperate with FSMA supervision, and refusal to provide requested information can trigger enforcement measures or sanctions. Cooperation is a legal obligation, not a courtesy. Responsibility stays with the intermediary and is not shifted to the lender.

Question 47Regulatory framework for credit intermediaries (FSMA registration and supervision)

How does the FSMA treat the requirement that an intermediary act with integrity and professional diligence?

  1. As a one-off test passed at registration only
  2. As a continuing obligation monitored throughout the registration Correct answer.
  3. As a rule that applies only to large intermediaries
  4. As a voluntary code without supervisory effect

Explanation

Integrity and diligence are continuing obligations, not just entry conditions, and the FSMA monitors them throughout the life of the registration. Breaches can lead to measures or sanctions at any time. Size and voluntary status do not affect their binding nature.

Question 48Regulatory framework for credit intermediaries (FSMA registration and supervision)

An intermediary outsources part of its administration to an external service provider. What remains the intermediary's responsibility?

  1. Only the provider's own registration with the FSMA
  2. Full responsibility for compliance with its regulatory obligations Correct answer.
  3. Only the payment of the provider's invoices
  4. Nothing, because responsibility shifts to the provider

Explanation

Outsourcing operational tasks does not transfer regulatory responsibility: the intermediary remains accountable for compliance and must ensure the arrangement does not impair supervision. The provider's status does not absorb the intermediary's duties. Responsibility cannot be contracted away.

Question 49Regulatory framework for credit intermediaries (FSMA registration and supervision)

Which statement about the FSMA's power to publish supervisory decisions concerning intermediaries is correct?

  1. The FSMA may publish certain decisions, subject to the legal conditions and safeguards Correct answer.
  2. Publication requires the prior consent of the lender
  3. Publication is decided solely by the intermediary concerned
  4. The FSMA may never publish any decision about an intermediary

Explanation

The FSMA can publish supervisory decisions within the limits and safeguards set by law, balancing transparency with the rights of the persons concerned. Publication is not prohibited outright nor left to the firm's discretion. Lender consent is not the governing criterion.

Question 50Regulatory framework for credit intermediaries (FSMA registration and supervision)

What is the purpose of the FSMA's consumer information campaigns about credit intermediaries?

  1. To set maximum interest rates
  2. To help consumers recognise authorised intermediaries and understand their rights Correct answer.
  3. To promote specific lenders' products
  4. To replace the public register

Explanation

Consumer education helps the public verify authorisation, understand costs and know their rights, which supports informed choices and deters unauthorised operators. Such campaigns do not advertise particular products or set prices. They complement, rather than replace, the register.