Which handbook sets minimum requirements for lenders when a non-commercial relationship (such as husband and wife) is involved in providing security?

• A. Law Society Conveyancing Protocol
• B. CML Handbook
• C. Etridge Guidelines
• D. Environmental Protection Act guidance

Answer: (B)

When security is provided by someone in a non-commercial relationship, lenders rely on an industry-standard source that sets the minimum requirements they must follow. The CML Handbook is that authoritative reference; it codifies the practices lenders must observe when dealing with security from individuals such as spouses or partners. It covers the steps to ensure the borrower understands the implications of the security, the documentation needed, and the circumstances in which independent legal advice should be obtained, aligning with the aim of safeguarding both parties and the lender.

The other resources serve different purposes: the Law Society Conveyancing Protocol focuses on conduct and procedures in conveyancing between solicitors and clients, not on lenders’ minimum requirements; the Etridge Guidelines provide guidance on independent legal advice to avoid undue influence but are not a lender-specific handbook; and Environmental Protection Act guidance relates to environmental law, not mortgage security practices.