Which statement correctly describes Shell Insurance Services Ltd's status under the mortgage intermediary rules?

• A. They Must Be Authorised as a Mortgage Intermediary
• B. They Are Prohibited from Offering Life Insurance
• C. They Only Arrange Life Cover for Housing Loan Borrowers and Are Not Necessarily Mortgage Intermediaries
• D. They Must Be Authorised as Credit Intermediaries

Answer: (C)

Mortgage intermediary rules apply to those who arrange, advise on, or facilitate the loan itself, not ancillary products tied to a loan. If Shell Insurance Services Ltd only arranges life cover for borrowers taking out a housing loan, that activity does not automatically make them a mortgage intermediary. Their role is connected to the borrower’s life protection rather than the loan process, so they aren’t necessarily authorised as a mortgage intermediary or as a credit intermediary. They can still operate under life insurance regulation, but their status under mortgage intermediary rules remains non‑intermediary unless they actually arrange the loan itself.