FRE2 Mock Paper 5 — Skills, Principles & Ethical BehavioursHarder
The hardest FRE2 paper: heavy anti-money laundering and DISP complaints coverage, with ethics and whistleblowing scenarios. 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 5
This is mock paper 5 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 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
FRE2 Mock Paper 5 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 5 break down across 17 topic areas:
- Anti-money laundering8 questions
- Complaints6 questions
- Ethics4 questions
- Whistleblowing3 questions
- Adviser skills2 questions
- Consumer Duty2 questions
- Data protection2 questions
- Financial promotions2 questions
- SM&CR2 questions
- Vulnerable customers2 questions
- Bribery & inducements1 question
- Conflicts & inducements1 question
- FCA Principles1 question
- Record keeping1 question
…plus 3 further topic areas spread across the case studies.
Try two questions from FRE2 Mock Paper 5
These come from the free preview of this paper. Answer them, then reveal the explanation.
Consumer Duty
Under the Consumer Duty, product manufacturers and distributors in the same chain are expected to:
- AOperate in strict isolation to preserve commercial confidentiality, the Duty deliberately keeping each firm's obligations wholly separate
- BMerge their compliance functions into one team
- CRely on whichever firm is largest to carry all Duty obligations
- DShare information so each can meet its obligations — for example on the target market, product performance and fair value
Reveal the answer
D is correct. The Duty makes the distribution chain work as a chain: manufacturers need distribution information to assess outcomes, and distributors need target market and value information to sell appropriately. Each firm keeps its own obligations — they are neither merged nor delegated to the biggest player.
Consumer Duty
To meet the consumer understanding outcome, the FCA encourages firms to test important customer communications. This means:
- ASending all customer letters to the FCA for approval
- BChecking through customer testing or response monitoring whether communications are actually understood, and improving them where they are not
- CProducing longer, more comprehensive documents, since a communication that includes every detail cannot mislead and therefore satisfies the outcome automatically
- DHaving communications proofread for spelling only
Reveal the answer
B is correct. The outcome is judged by real-world understanding, not by the firm's intentions — so testing, response monitoring and iteration are expected for key communications. The FCA does not pre-approve letters, and length often works against understanding rather than for it.
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.