FRE2 Mock Paper 2 — Skills, Principles & Ethical BehavioursStandard
Standard-tier FRE2 practice leaning hard on anti-money laundering and financial promotions, plus SM&CR, ethics and suitability. 40 marks in 60 timed minutes.
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 FRE2 Mock Paper 2
This is mock paper 2 of 5 for FRE2, the Skills, Principles & Ethical Behaviours 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
FRE2 Mock Paper 2 follows the live FRE2 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 FRE2 Mock Paper 2 break down across 19 topic areas:
- Anti-money laundering7 questions
- Financial promotions6 questions
- Consumer Duty3 questions
- Data protection3 questions
- Adviser skills2 questions
- Complaints2 questions
- Culture & conduct2 questions
- Ethics2 questions
- SM&CR2 questions
- Suitability2 questions
- Bribery & inducements1 question
- Conduct rules1 question
- Conflicts of interest1 question
- FCA Principles1 question
…plus 5 further topic areas spread across the case studies.
Try two questions from FRE2 Mock Paper 2
These come from the free preview of this paper. Answer them, then reveal the explanation.
Consumer Duty
Under the Consumer Duty's price and value outcome, a firm must be able to demonstrate that:
- AIts products are the cheapest available in the market, since fair value is measured by the lowest price obtainable
- BIts charges never exceed those of its three nearest competitors
- CThe price a retail customer pays bears a reasonable relationship to the overall benefits they receive
- DAll customers pay an identical fee regardless of circumstances
Reveal the answer
C is correct. Fair value is about the relationship between price and benefits, assessed across the target market — not about being cheapest or charging uniform fees. A firm can charge a premium price if the benefits justify it; what it cannot do is offer products where the price is unreasonable relative to what customers get.
Consumer Duty
A firm makes it easy to take out a product online in minutes but requires customers to telephone during limited office hours, and wait in long queues, in order to cancel. Under the Consumer Duty this is most likely to breach:
- ANothing, because clear disclosure of the cancellation process at the outset cures any barrier the customer later meets
- BThe consumer support outcome — exit should be at least as easy as entry, and 'sludge' barriers cause harm
- CThe price and value outcome, because telephone calls cost money
- DThe products and services outcome, because the product was sold online
Reveal the answer
B is correct. The consumer support outcome requires support that lets customers use their products and pursue their objectives without unreasonable barriers — deliberately frictional exit routes ('sludge practices') are a headline example of what it prohibits. Disclosure at the outset does not cure an unreasonable barrier.
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 FRE2 exam guide, then sit the next paper in the ramp.
The other FRE2 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.