SQE1 sample questions

Question 39

A solicitor acts for a client who is raising finance secured against his home to fund his new business. The solicitor will be providing advice and preparing all the necessary documentation in connection with the mortgage.

The client asks the solicitor to explain the key differences between a repayment mortgage and an endowment mortgage. Neither the solicitor nor his firm is authorised by the Financial Conduct Authority to carry on a regulated activity.

Can the solicitor give the explanation requested about the types of mortgages?

A. Yes, because such advice is a necessary part of the provision of his legal services.

B. Yes, because he is subject to the Solicitors' Financial Services (Scope) Rules and therefore falls within an exemption from the Financial Services and Markets Act 2000.

C. Yes, because the provision of generic advice is outside the scope of the Financial Services and Markets Act 2000.

D. No, because such advice does not fall within an exemption from the Financial Services and Markets Act 2000.

E. No, because he is not authorised by the Financial Conduct Authority to give advice in respect of either type of mortgage.


C - Yes, because the provision of generic advice is outside the scope of the Financial Services and Markets Act 2000.


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