FRE1 Mock Paper 3 — Industry, Regulation & Key Parties
Standard-tier FRE1 mock weighted to authorisation and redress, with case studies on appointed representatives, vulnerable customers and arrears complaints.
- Questions
- 40
- Minutes
- 60
- Pass (70%)
- 28/40
Sit it timed
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 3
This is mock paper 3 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 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
FRE1 Mock Paper 3 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 3 break down across 10 topic areas:
- Authorisation & conduct6 questions
- Regulators & framework6 questions
- CS1 — Authorisation & ARs5 questions
- CS2 — Vulnerable customers5 questions
- CS3 — Complaints & arrears5 questions
- Consumer protection & redress4 questions
- Economy & funding3 questions
- Market & parties3 questions
- Financial crime2 questions
- Data protection1 question
Try two questions from FRE1 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
Regulators & framework
Which option correctly states the PRA's objectives?
- AA general objective to promote the safety and soundness of the firms it regulates, and an insurance-specific objective of contributing to policyholder protection
- BProtecting consumers of all authorised firms from unfair conduct
- CEnsuring relevant markets function well, with operational objectives of consumer protection, market integrity and promoting effective competition in consumers' interests
- DSetting Bank Rate and managing the note issue
Reveal the answer
A is correct. The PRA's general objective is firms' safety and soundness, supplemented by policyholder protection for insurers (and a secondary competition and competitiveness objective). Market functioning and conduct belong to the FCA; Bank Rate to the MPC.
Regulators & framework
The countercyclical capital buffer, set by the Financial Policy Committee, is designed to:
- ACap the interest rates lenders may charge in a recession
- BFix the exchange rate of sterling against other major currencies during periods of market stress, protecting banks' overseas funding costs
- CRequire banks to build up extra capital in good times that can be released to absorb losses and support lending in a downturn
- DGuarantee savers' deposits when a bank fails
Reveal the answer
C is correct. The CCyB is a macroprudential tool: raising it in benign conditions builds resilience, and cutting it in stress frees capital so banks keep lending. Deposit guarantees are the FSCS's role, and neither rate caps nor exchange-rate fixing is an FPC function.
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.