CeMAP Module 1 study guide
CeMAP Module 1 · Work through your exam, one topic at a time.
CeMAP Module 1 - usually titled UK Financial Regulation - is the regulation paper that sits at the foundation of the Certificate in Mortgage Advice and Practice, the benchmark qualification for anyone entering or already working in UK mortgage advice. Because every later mortgage topic (product selection, affordability, disclosure, advice process) is framed by regulation, Module 1 is where candidates first learn who the regulators are, what they require, and how those requirements reach the desk of an adviser. The CeMAP Module 1 study guide has 5 sections and about 1,698 words.
01The financial services environment and the regulatory framework
UK financial regulation rests on the Financial Services and Markets Act 2000 (FSMA). Since 2013 the 'twin peaks' model has operated: the Prudential Regulation Authority (PRA), a subsidiary of the Bank of England, supervises the safety and soundness of banks, building societies, insurers and designated investment firms; the Financial Conduct Authority (FCA) regulates conduct for all authorised firms and prudentially supervises firms outside the PRA's remit.
320 words, about 2 min02The FCA and PRA, the Handbook and regulated activities
Section 19 FSMA imposes the general prohibition: no person may carry on a regulated activity in the UK by way of business unless authorised or exempt. A regulated activity has two elements under the Regulated Activities Order (RAO): a specified activity (for example accepting deposits, dealing, arranging, advising, entering into a regulated mortgage contract or debt adjusting) and a specified investment (for example deposits, insurance contracts, shares, units or regulated mortgage contracts).
321 words, about 2 min03Complaints handling, redress and the Financial Ombudsman Service
Under DISP, a complaint is any oral or written expression of dissatisfaction, whether justified, about a firm's provision of a financial service. Firms must operate an internal complaints procedure, investigate promptly and fairly, and send a final response within eight weeks.
362 words, about 2 min04Financial crime, money laundering and data protection
The core offences are in the Proceeds of Crime Act 2002 and the Terrorism Act 2000, supported by the Money Laundering Regulations 2017. Money laundering has three classic stages: placement, layering and integration.
370 words, about 2 min05Ethics, professional standards and consumer protection
The FCA's consumer protection objective requires it to secure an appropriate degree of protection for consumers, recognising that consumers bear responsibility for their decisions. Firms must comply with the Principles for Businesses, including treating customers fairly.
325 words, about 2 min