Qualified Financial Adviser (QFA) Regulations Exam 1 Practice Test

Protecting consumers from unfair contract terms that exploit the seller’s greater bargaining power. The Regulations translate the EU directive into national law to prevent terms in consumer contracts that create a significant imbalance to the detriment of the consumer, ensuring terms are fair and transparent. This isn’t about promoting competition, anti-discrimination, or cross-border trade per se; it focuses on safeguarding consumers from abusive or unilateral terms imposed by sellers. In practice, it means terms that allow price hikes without notice, limit the consumer’s rights, or exclude liability can be deemed unfair and not binding. That focus on shielding the consumer from power imbalance is why this option is the correct one.