FRE1 Mock Paper 5 — Industry, Regulation & Key PartiesHarder
The toughest FRE1 mock. Lender failure and FSCS, financial promotions and arrears support, tested through 25 questions and three demanding case studies.
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 5
This is mock paper 5 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 5 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 5 break down across 10 topic areas:
- Authorisation & conduct6 questions
- CS1 — Lender failure5 questions
- CS2 — Financial promotions5 questions
- CS3 — Arrears & state support5 questions
- Regulators & framework5 questions
- Consumer protection & redress4 questions
- Market & parties4 questions
- Economy & funding3 questions
- Financial crime2 questions
- Data protection1 question
Try two questions from FRE1 Mock Paper 5
These come from the free preview of this paper. Answer them, then reveal the explanation.
Regulators & framework
The FCA's market integrity objective is concerned with:
- ARunning the London Stock Exchange
- BGuaranteeing that investors never lose money in the markets, since the FCA underwrites all retail investment losses from a standing statutory fund
- CSetting the exchange rate for sterling
- DProtecting and enhancing the integrity of the UK financial system, including its soundness, transparency and freedom from financial crime
Reveal the answer
D is correct. Market integrity is one of the FCA's three operational objectives, covering the system's resilience, orderliness, transparency and cleanliness. No regulator guarantees investment outcomes, exchange rates float in the market, and the LSE is a commercial exchange the FCA supervises rather than operates.
Regulators & framework
When a UK bank fails, which body acts as the resolution authority responsible for managing the failure in an orderly way?
- AThe Competition and Markets Authority
- BThe Financial Ombudsman Service, which takes control of a failed bank's assets and directs the wind-down on depositors' behalf
- CUK Finance, on behalf of its members
- DThe Bank of England, using the special resolution regime to protect depositors and stability
Reveal the answer
D is correct. The Bank of England is the UK's resolution authority, with statutory tools to transfer, stabilise or wind down a failing bank while protecting depositors and the wider system. The FOS resolves complaints, UK Finance is a trade body, and the CMA polices competition — none manages bank failures.
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.