FRE1 Mock Paper 4 — Industry, Regulation & Key Parties
A harder FRE1 mock: regulated-mortgage scope, land law and Bank Rate economics, plus case studies on financial crime, perimeter questions and interest rates.
- 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 4
This is mock paper 4 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 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
FRE1 Mock Paper 4 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 4 break down across 10 topic areas:
- Authorisation & conduct6 questions
- CS1 — Financial crime5 questions
- CS2 — Scope of regulation5 questions
- CS3 — Economy & rates5 questions
- Regulators & framework5 questions
- Consumer protection & redress4 questions
- Land law & property4 questions
- Economy & funding3 questions
- Financial crime2 questions
- Data protection1 question
Try two questions from FRE1 Mock Paper 4
These come from the free preview of this paper. Answer them, then reveal the explanation.
Regulators & framework
The FCA's competition objective allows it to:
- ASet the number of lenders permitted to operate in the UK
- BPromote effective competition in the interests of consumers, using competition powers held concurrently with the Competition and Markets Authority
- CFix maximum prices for all mortgage products, because the competition objective gives the FCA a statutory duty to cap lender margins and broker fees right across the market
- DPrevent any new firm entering the mortgage market
Reveal the answer
B is correct. Competition is one of the FCA's three operational objectives, and it holds concurrent competition-law powers alongside the CMA — used through market studies and interventions. The objective is about making competition work for consumers, not price-fixing or rationing market entry.
Regulators & framework
Who sets the UK's inflation target that the Monetary Policy Committee must pursue?
- AThe Chancellor of the Exchequer, who confirms the remit to the Bank of England
- BThe Monetary Policy Committee itself, by majority vote
- CThe Office for National Statistics
- DThe Financial Conduct Authority
Reveal the answer
A is correct. The division of labour is target from the Chancellor, instrument from the Bank: the MPC independently sets Bank Rate to hit a 2% CPI target it does not choose. The ONS measures inflation but sets no policy, and the FCA has no monetary role at all.
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.