DipFA Module 1
FSRE mock exams and practice questions Financial Services, Regulation and Ethics, examined as FRE1 and FRE2
FSRE is the first module of the Diploma for Financial Advisers. It is sat as two one-hour exams, FRE1 and FRE2, each worth 40 marks with a 70% pass mark. This page covers what is tested, who can skip it and how to practise at exam pace.
What FSRE is, and where it sits in DipFA
FSRE stands for Financial Services, Regulation and Ethics. Walbrook Institute London lists it as Module 1 of DipFA. The rest of the diploma is four Advanced Financial Advice modules — taxation (AFAT), investments (AFAI), protection (AFAP) and retirement planning (AFAR) — and the Module 6 coursework.
It is the regulatory base for the advice modules. It covers how the UK financial services industry is put together, how the FCA and PRA regulate it, and the rules an adviser works under. It also tests the ethical judgement expected when those rules do not give a clear answer. FSRE is a Level 4 award in its own right, and Walbrook's specification puts the total study time at 100 hours, 50 for each unit.
FSRE is also the first module of CeMAP. Walbrook says a pass in FSRE can be used for both qualifications, so it is the same exam whichever diploma you are working towards.
The FSRE exam format
| FRE1 | FRE2 | |
|---|---|---|
| Unit | Industry, Regulation and Key Parties | Skills, Principles and Ethical Behaviours |
| Questions | 25 standalone questions + 3 case studies × 5 linked questions | 25 standalone questions + 3 case studies × 5 linked questions |
| Marks | 40 | 40 |
| Time | 60 minutes | 60 minutes |
| Pass mark | 28/40 (70%) | 28/40 (70%) |
Every question is multiple choice with four options and one mark. Both units are compulsory and each is passed on its own: a strong FRE1 score does not make up for a weak FRE2. Walbrook awards a merit at 80% and a distinction at 90%. The exams are taken online with remote invigilation, and Walbrook's specification says you do not need to book in advance. A failed unit costs £120 to resit.
Plan for the case studies. Fifteen of the 40 marks in each unit hang off three short scenarios, and you have to read each one before you can answer anything on it.
What the FSRE syllabus covers
FRE1: Industry, Regulation and Key Parties
- The UK financial services industry in its European and international context: markets, money and the role of government
- How the industry serves the retail consumer
- Legal concepts relevant to financial advice, such as legal entities
- How UK financial services regulation developed from 1986 to today
- The FCA's and PRA's objectives, powers and approach to regulation
- The FCA Handbook: high-level standards, training and competence, COBS, client assets, SM&CR and authorisation
FRE2: Skills, Principles and Ethical Behaviours
- Advice skills: communication, gathering information, analysis, recommendations and insistent clients
- The Principles for Businesses, conduct of business rules and the FCA's focus on preventing harm to consumers
- Market conduct, corporate culture and the responsibilities of senior management
- Record keeping, anti-money laundering and data protection
- Complaints, the Financial Ombudsman Service and the FSCS
- Client relationships: types of client and service, disclosure, adviser charging, cancellation rights and vulnerable clients
- Ethics: ethical principles, codes of conduct and resolving ethical dilemmas
A summary of Walbrook's 2026 FSRE specification. Check the current specification before you sit.
Who can skip FSRE
Anyone who has already passed it. Walbrook's FSRE page says the module is part of both DipFA and CeMAP, and that a pass in FSRE can be used for both qualifications. If you passed FRE1 and FRE2 on the way to CeMAP, you do not face a second regulation exam for DipFA.
Be careful with older passes. A certificate that says “CeMAP 1” may pre-date the current FRE1 and FRE2 exams. Walbrook handles earlier qualifications, and qualifications from other awarding bodies, through recognition of prior learning (what used to be called an exemption). Its specification says this may mean you do not have to register for every unit, but it depends on your certificates. Check with Walbrook before you assume you can skip FSRE.
How to prepare with timed mocks
FSRE rewards precise recall and careful reading of scenarios. Both slip under a clock, and an untimed question bank hides that. A 70% pass mark leaves room for 12 wrong answers out of 40, so a few careless case-study answers can cost you the unit.
Take a baseline
Sit FRE1 Paper 1, free and in full, under the 60-minute timer. Treat the score as a starting point, not a verdict.
Read every explanation
Including the ones you got right. Regulation questions are often decided by one word: must against should, or a strategic objective against an operational one.
Work up the ramp
Each unit has five papers running from easier to harder. A pass on a harder paper tells you more than a pass on Paper 1.
Treat case studies as blocks
Fifteen marks in each unit sit behind three short scenarios. Read each scenario once, carefully, then answer all five questions on it.
Book when it holds up
Book when you clear 28/40 on papers you have not seen before, in both units. Clearing it on a paper you remember is not the same thing.
FSRE mock papers
10 timed papers in the live format, 5 for each unit, with an explanation on every question. FRE1 Paper 1 is free in full. Every other paper opens a free 5-question preview. £9.99 unlocks the whole FSRE module (FRE1 and FRE2) for life, or £29.99 unlocks every DipFA MCQ module.
FRE1 — Industry, Regulation & Key Parties
FRE1 unit guide →FSRE — common questions
What does FSRE stand for?
Financial Services, Regulation and Ethics. It is Module 1 of the Diploma for Financial Advisers (DipFA) and is examined as two units, FRE1 and FRE2.
How many questions are in the FSRE exam?
Each unit has 25 standalone multiple-choice questions plus 3 case studies with 5 linked questions each. That is 40 marks per unit and 80 across FSRE, with one hour for each unit.
What is the FSRE pass mark?
70% in each unit, which is 28 out of 40. Both units must be passed. Walbrook awards a merit at 80% and a distinction at 90%.
Is DipFA FSRE the same as CeMAP FSRE?
Yes. Walbrook lists FSRE as part of both DipFA and CeMAP, and says a pass in FSRE can be used for both qualifications.
Do I have to sit FSRE if I already hold CeMAP?
Not if you have passed FSRE (FRE1 and FRE2), because that pass counts towards DipFA too. If your CeMAP regulation pass comes from an older version of the qualification, or your regulation qualification is from another awarding body, ask Walbrook about recognition of prior learning before you skip it.
Is there a free FSRE mock exam?
Yes. FRE1 Paper 1 is free in full on this site: 40 marks, 60 minutes, an explanation on every question, no sign-up.