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FRE1 Mock Paper 1 — all 40 questions and answers

The complete FRE1 Mock Paper 1 bank, published in full with the correct answer and a written explanation for every question. This is the review copy — if you have not sat the paper yet, take it against the clock first. You will learn far more from a question you got wrong than from one you read the answer to.

Regulators & framework

1. Which of the following correctly states the FCA's single strategic objective?

  1. ATo ensure that relevant markets function well
  2. BTo protect and enhance the stability of the UK financial system
  3. CTo secure an appropriate degree of protection for consumers
  4. DTo promote effective competition in the interests of consumers
Reveal the answer

A is correct. The FCA's strategic objective is ensuring relevant markets function well. Consumer protection, market integrity and competition are its three operational objectives — a favourite trap is presenting an operational objective as the strategic one. (Financial stability is the Bank of England's territory.)

Regulators & framework

2. The Prudential Regulation Authority (PRA) is best described as responsible for:

  1. AThe conduct of business of all authorised firms
  2. BThe prudential safety and soundness of banks, building societies, credit unions, insurers and major investment firms
  3. CSetting Bank Rate eight times a year
  4. DMacroprudential tools such as loan-to-income limits
Reveal the answer

B is correct. The PRA (part of the Bank of England) prudentially regulates deposit-takers, insurers and the largest investment firms. Conduct across all firms is the FCA's job; Bank Rate is the MPC; macroprudential tools such as the LTI flow limit belong to the FPC.

Regulators & framework

3. A recommendation to limit the proportion of new mortgage lending at high loan-to-income multiples would come from which body?

  1. AHM Treasury's Debt Management Office
  2. BThe Financial Policy Committee
  3. CThe Monetary Policy Committee
  4. DThe Prudential Regulation Committee
Reveal the answer

B is correct. The FPC is the Bank of England's macroprudential committee, charged with identifying and reducing systemic risk — its tools include the LTI flow limit and the countercyclical capital buffer. The MPC sets monetary policy, not lending limits.

Regulators & framework

4. Under section 19 of the Financial Services and Markets Act 2000, the 'general prohibition' means that:

  1. AFinancial promotions may not be issued to retail clients unless they relate solely to deposit accounts
  2. BNo firm may charge fees for mortgage advice
  3. CNo person may carry on a regulated activity in the UK unless authorised or exempt
  4. DUnregulated loans are prohibited entirely
Reveal the answer

C is correct. Section 19 FSMA 2000 prohibits carrying on regulated activities by way of business without authorisation or exemption. Breach is a criminal offence and resulting agreements may be unenforceable. Appointed representatives are the classic example of exempt persons.

Authorisation & conduct

5. Which of the following is a genuine difference between a directly authorised (DA) mortgage broker and an appointed representative (AR)?

  1. AARs are regulated by the PRA rather than the FCA
  2. BOnly DA firms may advise on regulated mortgage contracts
  3. CA DA firm holds its own FCA authorisation and responsibility for compliance, whereas an AR is exempt and its principal firm accepts regulatory responsibility for its activities
  4. DAn AR needs no relationship with any authorised firm
Reveal the answer

C is correct. An AR is an exempt person under s39 FSMA: it contracts with a principal (often a mortgage network) which takes responsibility for the AR's regulated business. A DA firm answers to the FCA directly. Both can advise; the difference is where regulatory responsibility sits.

Authorisation & conduct

6. Under section 21 FSMA, a financial promotion for a mortgage product communicated by an unauthorised person must be:

  1. ALimited to high-net-worth individuals
  2. BFiled with HM Treasury and entered on the Treasury's public register of promotions before first use
  3. CApproved by an appropriately permitted authorised person, and be fair, clear and not misleading
  4. DSigned off by the Financial Ombudsman Service
Reveal the answer

C is correct. The financial promotion restriction (s21) requires promotions by unauthorised persons to be approved by an authorised firm (with the appropriate approver permission). All promotions must meet the 'fair, clear and not misleading' standard.

Authorisation & conduct

7. Which set of activities relating to regulated mortgage contracts requires FCA permission?

  1. AMarketing, printing and distributing product literature
  2. BAdvising, arranging, entering into and administering
  3. COnly advising and arranging
  4. DOnly entering into and administering
Reveal the answer

B is correct. The Regulated Activities Order captures advising on, arranging, entering into and administering regulated mortgage contracts. A firm needs the specific permissions matching what it actually does — a broker typically holds advising/arranging; a lender holds entering into/administering.

Authorisation & conduct

8. The FCA's Threshold Conditions are best described as:

  1. AThe conditions a complainant must satisfy before the Financial Ombudsman Service will accept a referral, such as complaining to the firm first
  2. BThe capital rules applying only to banks
  3. CThe maximum fees a firm may charge
  4. DThe minimum standards a firm must meet at authorisation and on a continuing basis, such as appropriate resources and suitability
Reveal the answer

D is correct. Threshold Conditions (COND) are the entry-and-ongoing requirements for authorisation — legal status, location of offices, effective supervision, appropriate resources, suitability and business model. Falling below them invites variation or cancellation of permission.

Authorisation & conduct

9. Rules on advising and selling regulated mortgage contracts are found in which part of the FCA Handbook?

  1. ABCOBS
  2. BCOBS
  3. CMCOB
  4. DCONC
Reveal the answer

C is correct. MCOB (Mortgages and Home Finance: Conduct of Business) governs regulated mortgage contracts, home purchase plans, home reversion plans and regulated sale-and-rent-back. COBS covers investment business, CONC consumer credit, BCOBS banking.

Consumer protection & redress

10. Marta holds £126,000 in a savings account with a failed bank, in her sole name. What FSCS compensation can she expect?

  1. ANothing, because savings are unprotected
  2. B£63,000 — 50% of her balance, as the scheme shares losses equally between the depositor and the failed bank
  3. C£120,000 — the deposit protection limit per person per authorised institution
  4. D£126,000 in full, because deposits held in a sole name are always repaid in their entirety
Reveal the answer

C is correct. FSCS protects deposits up to £120,000 per person per authorised firm (£240,000 for joint accounts) for failures from 1 December 2025 — before that date the limit was £85,000, and older study texts may still show the old figure. Marta loses the £6,000 excess unless a temporary high balance rule applies. Knowing the per-institution point matters where banks share one authorisation.

Consumer protection & redress

11. Tom sold his house and had £600,000 from the sale sitting in his bank account when the bank failed six weeks later. Which statement is correct?

  1. AProceeds from a house sale can qualify as a temporary high balance, protected up to £1.4 million for six months from deposit
  2. BHe is protected up to £240,000 because property was involved
  3. CHe is protected only to £120,000 in all circumstances
  4. DHouse-sale proceeds are never FSCS-protected
Reveal the answer

A is correct. The temporary high balance rules protect certain life events — including proceeds of a private residence sale — up to £1.4m for six months from the date of deposit (raised from £1m for failures from 1 December 2025). After six months, protection reverts to the standard £120,000 limit.

Consumer protection & redress

12. What is the key distinction between the Financial Ombudsman Service and the Financial Services Compensation Scheme?

  1. AFOS handles complaints against firms that are still trading; FSCS compensates when an authorised firm has failed and cannot pay claims
  2. BFSCS decisions must be accepted by the consumer as final, whereas FOS awards are merely voluntary recommendations that firms are free to ignore
  3. CFOS deals with mortgages, FSCS with investments
  4. DThere is no practical difference
Reveal the answer

A is correct. FOS resolves disputes with live firms as an alternative to court. FSCS is the fund of last resort when a firm is insolvent or otherwise unable to meet claims. They are funded by industry levies, not by the taxpayer.

Consumer protection & redress

13. Under the Consumer Duty, which of the following is NOT one of the four outcomes firms must deliver?

  1. AGuaranteed investment performance
  2. BPrice and value
  3. CConsumer understanding
  4. DProducts and services
Reveal the answer

A is correct. The four Consumer Duty outcomes are products and services, price and value, consumer understanding, and consumer support — underpinned by Principle 12's obligation to deliver good outcomes for retail customers. No regime guarantees performance.

Regulators & framework

14. Which body sets the overall legal framework for financial services regulation and can create or amend the regulatory perimeter?

  1. AHM Treasury and Parliament, through legislation such as FSMA and statutory instruments
  2. BThe Financial Conduct Authority
  3. CUK Finance
  4. DThe Bank of England's Court of Directors, which must approve all financial services legislation before it reaches Parliament
Reveal the answer

A is correct. Parliament and HM Treasury define the perimeter (what is regulated) through legislation such as FSMA 2000 and the Regulated Activities Order. The FCA and PRA make rules within that framework. UK Finance is a trade body with no statutory power.

Market & parties

15. Which statement about building societies is correct?

  1. AThey are mutuals owned by their members, and at least 75% of their lending assets must be secured on residential property
  2. BThey cannot offer mortgages above 75% LTV
  3. CThey are regulated only by the FCA
  4. DThey are companies owned by external shareholders
Reveal the answer

A is correct. Building societies are mutual organisations under the Building Societies Act 1986: members (savers and borrowers) own them, at least 75% of business assets must be loans secured on residential property, and no more than 50% of funding may come from wholesale markets. As deposit-takers they are dual-regulated by the PRA and FCA.

Market & parties

16. What is the primary role of a mortgage packager in the intermediary market?

  1. ATo lend its own funds to borrowers
  2. BTo provide the compliance umbrella for appointed representatives
  3. CTo negotiate procuration fees for networks
  4. DTo act as an intermediary between brokers and (often specialist) lenders, assembling and pre-underwriting applications
Reveal the answer

D is correct. Packagers sit between brokers and lenders — typically specialist lenders without branch distribution — collating documents, keying cases and pre-underwriting. A network is the AR principal model; a mortgage club negotiates products/proc fees for DA brokers without taking regulatory responsibility.

Financial crime

17. Under the Money Laundering Regulations 2017, when must a firm apply enhanced due diligence (EDD) rather than standard customer due diligence?

  1. AFor every mortgage application
  2. BOnly when the customer is a limited company
  3. CIn higher-risk situations, such as where the customer is a politically exposed person or from a high-risk third country
  4. DOnly for cash transactions over £100,000, because the regulations treat every other method of payment as automatically low risk
Reveal the answer

C is correct. CDD (identify and verify the customer, understand the purpose of the transaction) is standard. EDD applies in prescribed higher-risk cases — PEPs, high-risk third countries, unusually complex or opaque transactions. Risk-based approach is the organising principle of the MLR 2017.

Financial crime

18. A suspicious activity report (SAR) is submitted to which organisation?

  1. AThe National Crime Agency
  2. BThe Financial Conduct Authority
  3. CThe Serious Fraud Office
  4. DHM Revenue & Customs
Reveal the answer

A is correct. SARs go to the National Crime Agency (NCA). Within a firm, staff report suspicions to the nominated officer/MLRO, who decides whether to file a SAR with the NCA. Failing to report when suspicion exists is itself an offence under the Proceeds of Crime Act 2002.

Data protection

19. Under the UK GDPR, a customer makes a subject access request for the personal data a broker holds on her. The firm must normally respond within:

  1. AThree months
  2. BTwelve weeks
  3. C48 hours
  4. DOne month
Reveal the answer

D is correct. A data subject access request must normally be answered within one month, free of charge (extendable by two further months for complex requests). Firms processing personal data must also pay the ICO's data protection fee and comply with the UK GDPR principles.

Data protection

20. Which body enforces data protection law in the UK?

  1. AThe Competition and Markets Authority
  2. BThe Data Protection Tribunal Service
  3. CThe Financial Ombudsman Service
  4. DThe Information Commissioner's Office
Reveal the answer

D is correct. The ICO is the UK's independent data protection regulator, with powers including enforcement notices and substantial fines under the UK GDPR and Data Protection Act 2018. The FCA separately expects firms to treat data security as a conduct matter.

Authorisation & conduct

21. Which of the following FCA enforcement tools is correctly described?

  1. AThe FCA can impose unlimited financial penalties, ban individuals, and require a skilled person review of a firm under s166 FSMA
  2. BFines are capped at £1 million per firm
  3. CEnforcement applies only to firms, never to individuals
  4. DThe FCA may only prosecute with HM Treasury consent
Reveal the answer

A is correct. FCA penalties are unlimited; it can censure, fine, restrict or remove permissions, prohibit individuals, and commission s166 skilled person reports. Individuals — especially senior managers — are squarely within scope.

Market & parties

22. In the house purchase process, which professional acts for the LENDER's interests when assessing whether a property is adequate security?

  1. AThe home inspector
  2. BThe estate agent, who owes the lender a statutory duty to confirm the property is worth the agreed price
  3. CThe buyer's conveyancer
  4. DThe valuer carrying out the mortgage valuation
Reveal the answer

D is correct. The mortgage valuation is commissioned to protect the lender's security interest, even where the borrower pays for it. The conveyancer may act for both borrower and lender on a standard purchase, but the valuation itself is for the lender.

Regulators & framework

23. Following the Financial Services and Markets Act 2023, the FCA has a secondary objective to:

  1. ASet the annual inflation target that the Monetary Policy Committee must follow when making Bank Rate decisions
  2. BGuarantee no authorised firm ever fails
  3. CFacilitate the international competitiveness and medium-to-long-term growth of the UK economy
  4. DNationalise failing banks
Reveal the answer

C is correct. FSMA 2023 added a secondary international competitiveness and growth objective for both the FCA and PRA, subordinate to their primary objectives. The inflation target is set by the Chancellor; bank resolution is a Bank of England function.

Consumer protection & redress

24. A mortgage intermediary firm fails owing redress to a client for unsuitable advice. The FSCS limit for home finance mediation claims against the failed firm is:

  1. A£50,000
  2. B£170,000
  3. CUnlimited
  4. D£85,000
Reveal the answer

D is correct. Claims relating to home finance advice and arranging against failed firms are protected up to £85,000 (raised from £50,000 in April 2019). Take care not to confuse this with the deposit limit, which rose to £120,000 in December 2025 — the £85,000 home finance mediation limit did not change, and examiners like to test both the old £50,000 and the deposit figure as distractors.

Market & parties

25. Which statement about credit unions is correct?

  1. AThey are member-owned mutuals serving people who share a common bond, offering savings and loans
  2. BThey are shareholder-owned banks specialising in mortgages, distributing their profits to outside investors rather than to members
  3. CThey are unregulated community groups
  4. DThey may not accept deposits
Reveal the answer

A is correct. Credit unions are mutual deposit-takers whose members share a common bond (e.g. locality or employer). They are authorised deposit-takers regulated by the PRA and FCA, and members' savings carry FSCS protection.

Case study 1 — The complaint

Mrs Okafor, a retired teacher, took mortgage advice from Fairway Mortgages Ltd, a small FCA-authorised broker, two years ago. She was advised into an interest-only mortgage and now believes the recommendation was unsuitable because no credible repayment strategy was discussed. She telephones Fairway to complain. Fairway is still trading and authorised. Mrs Okafor has never complained to a financial firm before and does not know what her rights are, what timescales apply, or where she can go if she is unhappy with Fairway's answer.

CS1 — Complaints & redress

26. Fairway receives Mrs Okafor's complaint by telephone. Within what period must the firm normally send its final response?

  1. AEight weeks
  2. BTwo weeks
  3. CFour weeks
  4. DSix months
Reveal the answer

A is correct. Under DISP, a firm must send a final response within eight weeks of receiving a complaint (with prompt acknowledgement in the meantime). If it cannot, it must explain why and tell the complainant of their right to go to the Ombudsman.

CS1 — Complaints & redress

27. Fairway issues a final response rejecting the complaint. How long does Mrs Okafor normally have to refer her complaint to the Financial Ombudsman Service?

  1. ATwelve months from the original advice
  2. BSix months from the final response
  3. CThere is no time limit
  4. DEight weeks from the final response
Reveal the answer

B is correct. The standard referral window is six months from the date of the final response (alongside the separate DISP time limits of six years from the event, or three years from when the complainant knew or ought to have known of cause to complain).

CS1 — Complaints & redress

28. Which statement about Mrs Okafor's use of the Financial Ombudsman Service is correct?

  1. AThe service is free to her as an eligible complainant, and she keeps the right to go to court if she rejects the outcome
  2. BShe must instruct a solicitor to represent her
  3. CThe FOS can only consider complaints about investment products
  4. DShe must first pay a case fee to the ombudsman service, which is refunded to her only if the complaint is ultimately upheld in her favour
Reveal the answer

A is correct. FOS is free to eligible complainants (private individuals and smaller businesses); firms pay the case fees and levies. A complainant who rejects the ombudsman's decision retains their legal rights; mortgages are squarely within FOS jurisdiction.

CS1 — Complaints & redress

29. If the Ombudsman upholds the complaint and Mrs Okafor accepts the determination, what is its effect on Fairway?

  1. AIt is advisory only
  2. BIt converts automatically into a court judgment against the adviser personally
  3. CIt is binding only if Fairway also accepts it
  4. DIt is binding on the firm, which must comply with the award and any directions
Reveal the answer

D is correct. An ombudsman's final decision, once accepted by the complainant within the deadline, is binding on the firm and enforceable through the courts. The firm has no right of veto — only the complainant chooses whether to accept.

CS1 — Complaints & redress

30. Suppose instead that Fairway had ceased trading and been declared in default before the complaint was resolved. Where should Mrs Okafor take her claim, and what protection applies?

  1. ANowhere — claims die with the firm
  2. BTo the FCA, which pays redress from fines income
  3. CTo the Financial Services Compensation Scheme, which covers home finance advice claims against failed firms up to £85,000
  4. DTo the Financial Ombudsman Service, which pays compensation itself
Reveal the answer

C is correct. When an authorised firm is unable to meet claims, the FSCS steps in as the fund of last resort — home finance mediation claims are protected up to £85,000. FOS adjudicates against live firms; it does not pay compensation from its own funds.

Case study 2 — The new adviser

Priya has just been recruited as a trainee mortgage adviser by Harbour Financial Planning, a directly authorised mortgage intermediary. She has passed two of the CeMAP assessments but has not yet completed the qualification. Harbour's compliance director is planning Priya's route to giving advice: what she may do before she is qualified, what ongoing obligations she will have once advising, and how the firm must oversee her under the FCA's regime for staff in client-facing roles.

CS2 — Advisers & competence

31. Before Priya has completed an appropriate qualification such as CeMAP, which statement best reflects what she may do?

  1. AShe may advise on buy-to-let but not residential mortgages
  2. BShe may give mortgage advice freely provided a manager reviews her files afterwards, since retrospective checking satisfies the FCA's supervision requirements in full
  3. CShe may work under close supervision, but must not give unsupervised advice until assessed as competent and appropriately qualified
  4. DShe may not have any customer contact whatsoever
Reveal the answer

C is correct. The Training & Competence regime allows trainees to work under appropriate supervision while obtaining the qualification, but a firm must not allow unsupervised advising until the individual is qualified and assessed as competent. A blanket customer-contact ban is not required.

CS2 — Advisers & competence

32. Once advising, how many hours of continuing professional development must Priya complete each year as a mortgage adviser?

  1. A15 hours
  2. B35 hours
  3. C10 hours
  4. DThere is no minimum
Reveal the answer

D is correct. There is no minimum number of CPD hours for mortgage advisers. TC 2.1 sets hours only for retail investment advisers (35) and pension transfer specialists (15); the Mortgage Credit Directive's knowledge and competence requirements at TC 2.1.5B–5F prescribe no hours at all. What does apply is TC 2.1.1R: the firm must ensure its advisers remain competent, and must be able to evidence it. The 15-hour figure in the options is borrowed from a different role — exactly the trap.

CS2 — Advisers & competence

33. Under the Senior Managers & Certification Regime, Priya's role as a client-facing mortgage adviser means that:

  1. AShe must be individually approved by the FCA before starting work, because every client-facing adviser performs a Senior Management Function
  2. BShe needs PRA approval as a Senior Manager
  3. CShe is outside the regime entirely
  4. DThe firm itself must certify her as fit and proper at least annually — FCA pre-approval is not required for her role
Reveal the answer

D is correct. Under SM&CR, only Senior Management Functions need regulatory pre-approval. Client-dealing staff such as advisers fall within the Certification Regime: the firm assesses and certifies fitness and propriety at least annually. This shift of responsibility onto firms is a classic exam point.

CS2 — Advisers & competence

34. Which statement about the FCA Conduct Rules is correct in Priya's situation?

  1. AThey apply only to the firm's directors
  2. BThey are voluntary guidance
  3. CThey apply only after five years' service
  4. DIndividual conduct rules — such as acting with integrity and due care — will apply to Priya personally once she is within scope
Reveal the answer

D is correct. The Conduct Rules apply to almost all staff in authorised firms (not just senior managers). There are six individual rules: act with integrity; act with due skill, care and diligence; be open and cooperative with the regulators; pay due regard to customers' interests and treat them fairly; observe proper standards of market conduct; and — added on 31 July 2023 with the Consumer Duty — act to deliver good outcomes for retail customers. Firms must train staff on them and report breaches.

CS2 — Advisers & competence

35. Harbour's compliance director asks what records the firm should keep about Priya's route to competence. The best answer is:

  1. ARecords are needed only if the FCA opens an investigation
  2. BRecords of her training, supervision, qualification progress, competence assessment and ongoing CPD, retained to evidence compliance with the T&C regime
  3. CNone — competence is self-certified by the adviser
  4. DOnly her exam certificates
Reveal the answer

B is correct. Firms must be able to demonstrate compliance: training and supervision records, the date competence was assessed, qualification evidence and CPD logs. 'If it isn't recorded, it didn't happen' is the practical standard supervisors apply.

Case study 3 — The hurried buyer

Mr Vann approaches an adviser at Keystone Brokers wanting to complete a £450,000 purchase 'as fast as possible'. He proposes a deposit of £260,000 in cash which he says came 'partly from family abroad and partly from business deals'. He is reluctant to provide bank statements, becomes irritated when asked about the source of his deposit, and offers to pay Keystone a substantially higher fee if they can 'keep the questions to a minimum'. The adviser is uneasy and consults the firm's procedures.

CS3 — Financial crime

36. Before doing business with Mr Vann, what must Keystone do as a minimum under the Money Laundering Regulations?

  1. AObtain a criminal records check
  2. BSimply photocopy his passport for the file
  3. CApply customer due diligence — identify and verify his identity and understand the purpose and intended nature of the transaction
  4. DNothing, since mortgage brokers are outside the regulations
Reveal the answer

C is correct. CDD requires identifying the customer, verifying identity from reliable independent sources, and understanding the purpose of the business relationship. A passport copy alone does not discharge the duty if other elements are missing.

CS3 — Financial crime

37. Which features of Mr Vann's behaviour most clearly point towards enhanced scrutiny of the transaction?

  1. AA large cash deposit of vague origin, reluctance to evidence source of funds, urgency, and an offer of extra payment to avoid questions
  2. BThe size of the property purchase alone, since any purchase above the average UK house price must automatically be treated as high risk and reported
  3. CHis use of a mortgage broker rather than going direct
  4. DThe fact that some funds come from family
Reveal the answer

A is correct. Classic red flags cluster here: unexplained cash, evasiveness about source of funds/wealth, artificial urgency and attempts to buy off scrutiny. Any one alone might be innocent; the combination demands escalation and, where risk is higher, enhanced due diligence. Family gifts, properly evidenced, are routine.

CS3 — Financial crime

38. The adviser forms a suspicion of money laundering. What should they do first?

  1. ATelephone the police non-emergency line
  2. BReport directly to the National Crime Agency themselves, without involving anyone else at the firm
  3. CMake an internal report to the firm's nominated officer (MLRO)
  4. DDecline the business and warn Mr Vann he seems suspicious
Reveal the answer

C is correct. The correct internal route is a report to the firm's nominated officer/MLRO, who considers it and decides whether to submit a SAR to the NCA. Warning the customer would risk the separate offence of tipping off.

CS3 — Financial crime

39. Who decides whether a suspicious activity report is submitted to the National Crime Agency, and may the firm need consent to proceed?

  1. AThe adviser decides; consent is never needed
  2. BThe FCA files all SARs on firms' behalf
  3. CThe customer must approve the SAR before filing
  4. DThe nominated officer/MLRO decides whether to file the SAR, and where a defence against money laundering (consent) is sought, the transaction should not proceed until it is given or the notice period expires
Reveal the answer

D is correct. The MLRO evaluates internal reports and files SARs with the NCA. Where the firm would otherwise be handling criminal property, it can seek a defence (formerly 'consent') and must await the NCA's response or expiry of the statutory period before proceeding.

CS3 — Financial crime

40. After the report is made, Mr Vann telephones to ask why his case has 'gone quiet'. The adviser tells him the file was referred for a money-laundering check. Which offence is most clearly in play?

  1. ATipping off — disclosing that a SAR or investigation is in progress in a way likely to prejudice it
  2. BNo offence, since the Consumer Duty's requirement of honesty with customers overrides the confidentiality provisions of POCA 2002
  3. CFailure to report under POCA 2002
  4. DMarket abuse
Reveal the answer

A is correct. Tipping off (POCA 2002 / the regulated-sector offences) criminalises disclosures likely to prejudice an investigation after a report has been made. Firms use neutral holding language with customers. The Consumer Duty never requires disclosure that would break the criminal law.

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