Developing a strong vocabulary is vital for success in CeMAP. You will meet acronyms and terms in every module. Recognising and understanding them quickly will save time in exams. This article introduces key financial and regulatory terms. Use it as a starting point for your own glossary or flashcards.
WHY VOCABULARY MATTERS
In multiple-choice questions, precise definitions guide you to the correct answer. In case studies, knowing terms lets you focus on client needs rather than decoding language. A personal glossary reinforces learning and boosts confidence.
KEY TERMS AND ACRONYMS
FCA
The Financial Conduct Authority. It regulates conduct in financial markets. It sets rules to protect consumers and ensure market integrity.
PRA
The Prudential Regulation Authority. Part of the Bank of England. It oversees banks and insurers to ensure they have enough capital and manage risks.
FSCS
The Financial Services Compensation Scheme. It compensates consumers if a firm fails. Coverage is up to £85,000 per person, per firm.
LTV
Loan to Value. It expresses a mortgage amount as a percentage of the property value. Lenders use it to assess risk.
EMI
Equated Monthly Instalment. The fixed monthly payment on a repayment mortgage that covers capital and interest.
Amortisation
The process of paying off a loan over time in regular instalments. These instalments include both interest and capital.
APR
Annual Percentage Rate. The total cost of credit, expressed as an annual rate. It includes interest and fees.
ESIS / KFI
European Standardised Information Sheet / Key Facts Illustration. Documents that show mortgage costs and terms before application.
CDD
Customer Due Diligence. Checks to verify a client’s identity and assess money-laundering risk.
KYC
Know Your Customer. Procedures financial firms use to confirm a client’s identity, usually part of CDD.
SAR
Suspicious Activity Report. A report to the National Crime Agency when a firm suspects money-laundering or fraud.
EMI
Equated Monthly Instalment. The fixed monthly payment on a repayment mortgage that covers capital and interest.
MI
Mortgage Illustration. A document showing how a mortgage repayment plan works, based on certain assumptions.
FSMA
Financial Services and Markets Act 2000. The primary law giving regulators their powers and setting out offences.
COBS
Conduct of Business Sourcebook. The section of the FCA Handbook dealing with how firms must interact with clients.
GDPR
General Data Protection Regulation. Rules on how firms handle personal data, ensuring privacy and security.
FSMA
Financial Services and Markets Act 2000. The main legislation giving the FCA and PRA their authority.
MS
Money Service. A broad term covering services such as payments, currency exchange and remittances.
This is just a few of the key terms you will need to know. I was lucky that these and more where provided to me by my training company when I was studying that saved me a lot of time and effort (Study Smart Not Hard), but you can always go through the LIBF Syllabus yourself finding all the key terms and abbreviations and put together your own full list.
HOW TO USE THIS GLOSSARY
Create flashcards
Write each term on one side and the definition on the other. Review daily.
Build a digital list
Use a tool such as Excel or Notion. Tag each term by module (CeMAP 1, 2 or 3).
Group by theme
Separate regulatory terms from mortgage-product terms and calculation terms. Focus on one group at a time.
Test yourself
Ask a study partner to quiz you on definitions. Use timed recall to simulate exam conditions.
EXAM-FOCUSED TIPS
Regulatory terms feature heavily in CeMAP 1. Mortgage-product and calculation terms appear in CeMAP 2. Case-study scenarios in CeMAP 3 will require you to apply both types of terms. Keep your glossary close when you practise questions.
NEXT STEPS AND RESOURCES
To reinforce your vocabulary, review the official LIBF CeMAP syllabus glossary. For structured exercises and ready-made flashcards, visit CeMAP123’s vocabulary lists. Regular review will turn this list into second nature and give you an edge in every exam module.
Conclusion
BUILDING a strong financial services vocabulary takes time, but the effort will pay off. With clear definitions at your fingertips, you will spend less time decoding questions and more time demonstrating your knowledge. Keep adding new terms as you study, and watch your confidence grow.
This is so true and something I wish I found before CeMAP 1. There is so many abbreviations that are important to know.