FRE1 Mock Paper 4 — Industry, Regulation & Key PartiesHarder
A harder FRE1 mock: regulated-mortgage scope, land law and Bank Rate economics, plus case studies on financial crime, perimeter questions and interest rates.
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 4
This is mock paper 4 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 harder tier: it is deliberately pitched above the live exam, so passing it means you should clear the real thing with room to spare.
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 4 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 4 break down across 10 topic areas:
- Authorisation & conduct6 questions
- CS1 — Financial crime5 questions
- CS2 — Scope of regulation5 questions
- CS3 — Economy & rates5 questions
- Regulators & framework5 questions
- Consumer protection & redress4 questions
- Land law & property4 questions
- Economy & funding3 questions
- Financial crime2 questions
- Data protection1 question
Try two questions from FRE1 Mock Paper 4
These come from the free preview of this paper. Answer them, then reveal the explanation.
Regulators & framework
The FCA's competition objective allows it to:
- ASet the number of lenders permitted to operate in the UK
- BPromote effective competition in the interests of consumers, using competition powers held concurrently with the Competition and Markets Authority
- CFix maximum prices for all mortgage products, because the competition objective gives the FCA a statutory duty to cap lender margins and broker fees right across the market
- DPrevent any new firm entering the mortgage market
Reveal the answer
B is correct. Competition is one of the FCA's three operational objectives, and it holds concurrent competition-law powers alongside the CMA — used through market studies and interventions. The objective is about making competition work for consumers, not price-fixing or rationing market entry.
Regulators & framework
Who sets the UK's inflation target that the Monetary Policy Committee must pursue?
- AThe Chancellor of the Exchequer, who confirms the remit to the Bank of England
- BThe Monetary Policy Committee itself, by majority vote
- CThe Office for National Statistics
- DThe Financial Conduct Authority
Reveal the answer
A is correct. The division of labour is target from the Chancellor, instrument from the Bank: the MPC independently sets Bank Rate to hit a 2% CPI target it does not choose. The ONS measures inflation but sets no policy, and the FCA has no monetary role at all.
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.