FRE1 Mock Paper 3 — Industry, Regulation & Key PartiesStandard
Standard-tier FRE1 mock weighted to authorisation and redress, with case studies on appointed representatives, vulnerable customers and arrears complaints.
Ready when you are
The timer starts when you press the button. You can still finish after it runs out — it is there to mimic exam pressure, not to lock you out.
Free preview: the first 5 of 40 questions, with a timer to match. Unlock the full paper
Answer options are shuffled on every attempt. Your progress is saved as you go, so a refresh won't lose it.
About FRE1 Mock Paper 3
This is mock paper 3 of 5 for FRE1, the Industry, Regulation & Key Parties unit of CeMAP. The 5 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the standard tier: it is pitched at roughly live-exam difficulty, with distractors that are all plausible until you read them properly.
Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the 2025/26 five-unit CeMAP syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.
Format, timing and pass mark
FRE1 Mock Paper 3 follows the live FRE1 format: 25 standalone questions + 3 case studies × 5 linked questions, in 60 minutes — about 90 seconds a question. Pass mark 28/40 (70%), as in the real assessment. There is no negative marking, so answer everything. 3 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.
What this paper tests
The 40 questions in FRE1 Mock Paper 3 break down across 10 topic areas:
- Authorisation & conduct6 questions
- Regulators & framework6 questions
- CS1 — Authorisation & ARs5 questions
- CS2 — Vulnerable customers5 questions
- CS3 — Complaints & arrears5 questions
- Consumer protection & redress4 questions
- Economy & funding3 questions
- Market & parties3 questions
- Financial crime2 questions
- Data protection1 question
Try two questions from FRE1 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
Regulators & framework
Which option correctly states the PRA's objectives?
- AA general objective to promote the safety and soundness of the firms it regulates, and an insurance-specific objective of contributing to policyholder protection
- BProtecting consumers of all authorised firms from unfair conduct
- CEnsuring relevant markets function well, with operational objectives of consumer protection, market integrity and promoting effective competition in consumers' interests
- DSetting Bank Rate and managing the note issue
Reveal the answer
A is correct. The PRA's general objective is firms' safety and soundness, supplemented by policyholder protection for insurers (and a secondary competition and competitiveness objective). Market functioning and conduct belong to the FCA; Bank Rate to the MPC.
Regulators & framework
The countercyclical capital buffer, set by the Financial Policy Committee, is designed to:
- ACap the interest rates lenders may charge in a recession
- BFix the exchange rate of sterling against other major currencies during periods of market stress, protecting banks' overseas funding costs
- CRequire banks to build up extra capital in good times that can be released to absorb losses and support lending in a downturn
- DGuarantee savers' deposits when a bank fails
Reveal the answer
C is correct. The CCyB is a macroprudential tool: raising it in benign conditions builds resilience, and cutting it in stress frees capital so banks keep lending. Deposit guarantees are the FSCS's role, and neither rate caps nor exchange-rate fixing is an FPC function.
Scored under 70%? Revise these next
A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:
- →Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
- →Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
- →Re-read the syllabus coverage on the FRE1 exam guide, then sit the next paper in the ramp.
The other FRE1 mock papers
5 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.