Lifetime Mortgage Advice and Practice Certificate (LMAPC)

Course Syllabus

Appropriate Examination 1

UK Financial Services, Regulation and Ethics (ApEx 1)

• U1 . The purpose and structure of the UK financial services industry
• U2 . The main financial asset classes and their characteristics, covering past performance, risk and return
• U3. The main financial services product types and their functions
• U4. The main financial advice areas
• U5. The process of giving financial advice, including the importance of regular reviews of the consumer's circumstances
• U6. The basic legal concepts relevant to financial advice
• U7. The UK taxation and social security systems and how they affect personal financial circumstances
• U8. The impact of inflation, interest rate volatility and other relevant socio-economic factors on personal financial plans
• U9. The FSA's approach to regulating firms and individuals
• U10. How the FSA's rules affect the control structures of firms and their relationship with the FSA
• U11. How the FSA's Conduct of Business rules apply to the process of advising customers / clients
• U12. How the anti-money laundering rules apply to dealings with private and intermediate customers
• U13. The main features of the rules for dealing with complaints and compensation
• U14. How the Data Protection Act 1998 affects the provision of financial advice and the conduct of firms generally
• K1 . The main aims and activities of the Financial Services Authority (FSA) and its approach to ethical conduct by firms and individuals
• K2 . How non-tax law and regulations impact upon firms and the process of advising clients

Appropriate Examination 2

Investment and Risk (ApEx 2)

• U1. The macro-economic factors that affect investment returns
• U2. The basic principles of taxation applying to the investments of UK resident and domiciled individuals
• U3. Different asset classes and their key features and suitability for different consumer circumstances
  • 3.1 Cash deposits
  • 3.2 Government securities and corporate bonds
  • 3.3 Equities
  • 3.4 Property - residential and commercial
• U.4. Different product types and their key features and suitability for different consumer circumstances
  •  4.1. OEICs and unit trusts
  • 4.2. Investment trusts
  • 4.3. Individual savings accounts (ISAs) and personal equity plans (PEPs)
  • 4.4. UK and offshore life assurance company products
  • 4.5. Offshore funds
• U5. The role of ethical investment and socially responsible investment in financial advice
• U6. How investment returns are related to investment risk and how that risk is measured
• U7. The risks faced by investors and how an investor's risk profile is determined
• U8. The importance of asset allocation in the investment process
• U9. How other issues affect investment planning
• U10. Tax planning strategies and tax calculation rules and procedures
• U11. The importance of keeping up to date with trends and changes in the legal framework for providing advice
• An1. Analyse consumers' circumstances and suitable investment products, taking account of any existing arrangements
• A1. Apply suitable investment product solutions to specific consumers’ circumstances

Appropriate Examination 5

Mortgage Advice (ApEx 5) and Integrated Learning Outcome (H2)

Mortgage Advice (ApEx 5)

• K1. The definition of a mortgage and a regulated mortgage contract
• K2 . The house-buying process, the key parties involved and their roles
• K3. The principal types of property defect that surveys can identify and understand their implications when seeking a mortgage, including the options available to consumers
• K4. The process and implications of buying property at auction
• K5. The common types of borrower and how their main mortgage related requirements may differ and what factors may disqualify people from borrowing
• U1. The economic and regulatory context for giving mortgage advice
• U2. The role of a mortgage adviser and the importance and principles of providing advice, including the key factors affecting the advice given
• U3. The implications for consumers of 'gazumping' and 'gazundering'
• U4. The purpose of additional security, including the role of guarantors
• U5. The fees and charges involved in arranging a mortgage, where these apply, the services they cover, when they become due, which are refundable and how the opportunity for refunds diminishes as the process nears completion
• U6. The principal factors affecting the value of property, including their implications for consumers seeking mortgages and when consumers should be referred for specialist advice
• U7. The different forms of valuation and survey and which might be appropriate for different properties and / or the borrower's circumstances
• U8. The main features and functions of mortgage payment protection insurance (MPPI) and life, accident, sickness and unemployment (ASU) insurance
• U9. The principles and procedures associated with raising additional money and the circumstances when further borrowing might be appropriate
• U10. The principles, procedures and costs associated with transferring mortgages
• U11. The principles of using mortgages within debt consolidation arrangements
• U12. The need to obtain Local Authority planning consent for house development / extensions
• U13. The implications for the borrower of the non-payment of mortgages, other breaches of the Mortgage Deed, non-payment of building insurance, non-payment of ground rent / service charges and the options available
• U14. The legal rights and remedies available to lenders in respect of non-payment from borrowers
• U15. The main provisions made by the State to assist consumers in difficulties over the repayment of mortgages
• U16. The main requirements of the Mortgage Conduct of Business Rules and the legislation affecting mortgages
• U17. The key features of the different types of mortgage repayment options and their benefits and dis-benefits for different types of borrower
• U18. The key features of the common types of mortgage product and interest rate options
• U19. The structure and features of other types of mortgage and when they might be suitable for borrowers
• An1. Analyse consumers' circumstances and suitable mortgage solutions taking account of any existing arrangements
• A1. Apply suitable mortgage solutions to specific consumers' circumstances

H2 - Integrated Learning Outcome

The Integrated Learning Outcome does not have any specific objectives other than the overall learning objective as follows:

• Combine and apply the knowledge and understanding achieved in ApEx1 and ApEx5, demonstrating a clear understanding of how all this knowledge and understanding may be applied to real life situations.

Appropriate Examination 6

Lifetime Mortgages (ApEx 6) and Integrated Learning Outcome (H3)

Lifetime Mortgages (ApEx 6)

• K1. The definition of a lifetime mortgage and alternatives
• U1. The principles of equity release, the types of equity release schemes available and the applications for which such schemes might be appropriate
• U2. The types of consumer targeted and their particular requirements, both personal and financial
• U3. The circumstances where equity release may be appropriate and how these influence the consumer's purpose(s)
• U4. What happens when the consumer dies or goes into long term care, the type of advice that may be appropriate and when to offer such advice
• U5. The key features, relative benefits and risks of lifetime mortgages and the principal products and services that are alternatives to lifetime mortgages
• An1. The suitability and affordability of the different types of lifetime mortgage products and their principal alternatives for different types of consumer.
• As1. The risks to consumers associated with taking out equity release, and when these might arise
• As2. The relative levels of risk for different consumers taking account of the relevant factors
• A1. The rules relating to state benefits to provide appropriate advice to consumers regarding a potential loss in entitlement due to an increase in income or capital, including how these may vary by Local Authority
• A2. Suitable equity release solutions to the circumstances of different types of consumer

H3 - Integrated Learning Outcome

 The Integrated Learning Outcome does not have any specific objectives other than the overall learning objective as follows:

• Combine and apply the knowledge and understanding achieved in ApEx1, ApEx5 and ApEx6, demonstrating a clear understanding of how all this knowledge and understanding may be applied to real life situations.