FRE2 Mock Paper 3 — Skills, Principles & Ethical BehavioursStandard
A data-protection-heavy FRE2 mock — DSARs, breaches, retention — alongside training and competence, SM&CR and complaints handling at standard exam difficulty.
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 3
This is mock paper 3 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 3 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 3 break down across 19 topic areas:
- Data protection8 questions
- Training & competence4 questions
- Anti-money laundering3 questions
- Consumer Duty3 questions
- SM&CR3 questions
- Adviser skills2 questions
- Complaints2 questions
- Conduct rules2 questions
- Ethics2 questions
- Financial promotions2 questions
- Bribery & inducements1 question
- Conflicts & inducements1 question
- FCA Principles1 question
- Fitness & propriety1 question
…plus 5 further topic areas spread across the case studies.
Try two questions from FRE2 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
Consumer Duty
A mortgage packager never deals directly with borrowers, sitting between intermediaries and lenders. Under the Consumer Duty, the packager:
- AIs wholly outside the Duty, because the Duty attaches only to firms dealing face to face with the retail customers who ultimately pay for the product
- BNeed only comply if a customer complains about it by name
- CIs still within scope where it can determine or materially influence retail customer outcomes across the distribution chain
- DIs covered only if it holds client money
Reveal the answer
C is correct. The Duty applies along the distribution chain to firms that can determine or materially influence retail outcomes, even without direct customer contact — product design, information flows and processes all shape what the end customer gets. Direct contact, complaints and client money are not the tests.
Consumer Duty
Acting in 'good faith' under the Consumer Duty's cross-cutting rules is characterised by:
- AHonesty, fair and open dealing, and consistency with retail customers' reasonable expectations
- BAchieving a profit for the firm on every transaction, since good faith under the Duty is measured by commercial sustainability
- CFollowing the customer's instructions even when plainly harmful
- DAvoiding all commercial negotiation with customers
Reveal the answer
A is correct. Good faith is defined by honest, fair, open dealing consistent with customers' reasonable expectations — for example, not exploiting behavioural biases or information advantages. It does not forbid profit or negotiation, and blindly executing a harmful instruction can collide with the duty to avoid foreseeable harm.
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.