Question two, part (b), tested what securitisation was and the key barriers to Ennea Co undertaking the process. This part was done poorly by most candidates. Few responses gave an adequate explanation of the securitisation process, often confusing it with what leasing was and/or assuming securitisation meant providing asset security or collateral for a loan.

Very few responses considered the barriers to Ennea Co in any detail. It was evident that many candidates adopt a revision strategy where they try to spot questions or topics which would be asked in an exam, and considered securitisation as a relatively minor topic which was unlikely to be examined.

Candidates should avoid such a strategy, as any part of the syllabus and study guide can be examined. Question two, part (b) was not a difficult question, and knowledge of securitisation, and the ability to apply that knowledge to the question would have gained the majority of the marks.