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Exam Review

Key Facts: CeMAP Module 1 Exam

70%

Pass Mark Per Unit

Walbrook Institute London / LIBF

2 units

FRE1 and FRE2

FSRE Qualification Specification (July 2026)

40

Questions Per Unit

FSRE Qualification Specification (July 2026)

1 hour

Time Per Unit

FSRE Qualification Specification (July 2026)

£120,000

FSCS Deposit Limit (Dec 2025)

PRA / FSCS

£455,000

FOS compulsory money-award limit (2026–27 referrals; acts from 1 Apr 2019; excludes separately awarded interest and costs)

Financial Ombudsman Service

CeMAP Module 1 uses the Level 4 Financial Services, Regulation and Ethics (FSRE) award within the Level 3 CeMAP certificate. FRE1 and FRE2 are separate 60-minute exams of 40 questions each: 25 standalone MCQs and 15 linked to three case studies per unit. Both require 70%. FRE1 tests the financial-services industry, consumer needs, risk and regulation; FRE2 tests advice skills, conduct, client protection and ethics. Walbrook assigns 50 hours of study time to each unit. Our original practice questions support revision and are not official papers.

Sample CeMAP Module 1 Practice Questions

Try these sample questions to review concepts for the CeMAP Module 1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 258+ question experience with AI tutoring.

1Which UK body is the prudential regulator responsible for the safety and soundness of banks, building societies, credit unions and large insurers?
A.The Financial Conduct Authority (FCA)
B.The Financial Ombudsman Service (FOS)
C.The Prudential Regulation Authority (PRA)
D.The Financial Services Compensation Scheme (FSCS)
Explanation: The PRA, part of the Bank of England, is the prudential regulator and promotes the safety and soundness of the firms it authorises, focusing on capital, liquidity and resilience. The FCA is the conduct regulator. This is the dual-regulation 'twin peaks' model.
2From 1 December 2025, what is the FSCS deposit protection limit per eligible depositor, per authorised institution?
A.£75,000
B.£85,000
C.£100,000
D.£120,000
Explanation: Following PRA rules effective 1 December 2025, the FSCS deposit protection limit increased from £85,000 to £120,000 per eligible depositor per authorised firm. Banking licences are shared across brands, so the limit applies per institution, not per account.
3A consumer is dissatisfied with how a regulated firm handled their complaint. Which body provides a free, independent service to resolve the dispute without going to court?
A.The Financial Conduct Authority
B.The Prudential Regulation Authority
C.The Financial Ombudsman Service
D.The Competition and Markets Authority
Explanation: The Financial Ombudsman Service (FOS) settles individual disputes between consumers and financial firms free of charge to the consumer. A complaint can be referred to FOS once the firm has issued its final response or eight weeks have passed.
4Which institution sets the UK base interest rate and is responsible for monetary policy and financial stability?
A.HM Treasury
B.The Debt Management Office
C.The Financial Conduct Authority
D.The Bank of England
Explanation: The Bank of England is the UK's central bank. Its Monetary Policy Committee sets Bank Rate to meet the Government's inflation target, and its Financial Policy Committee monitors financial stability. The PRA sits within the Bank of England.
5A mutual organisation owned by its members and traditionally focused on savings and mortgage lending best describes a:
A.Retail bank
B.Unit trust
C.Building society
D.Credit reference agency
Explanation: A building society is a mutual institution owned by its members (savers and borrowers) rather than shareholders. Its main business is taking retail deposits and providing residential mortgages, governed by the Building Societies Act 1986.
6For an ordinary FCA-regulated complaint other than the special payment-service and e-money categories, when must a firm normally send either its final response or a written explanation of delay with FOS referral rights?
A.Within four weeks of receipt
B.Within twelve weeks of receipt
C.Within eight weeks of receipt
D.Within six months of receipt
Explanation: DISP 1.6.2 requires a final response or a written response explaining the delay and FOS referral rights by the end of eight weeks. The latter is not a final response; the customer may then refer the complaint to FOS.
7Which piece of legislation is the principal statute giving the FCA and PRA their regulatory powers over financial services in the UK?
A.The Financial Services Act 2012
B.The Banking Act 2009
C.The Financial Services and Markets Act 2000
D.The Financial Services Act 2021
Explanation: The Financial Services and Markets Act 2000 (FSMA), as amended, is the principal framework legislation under which the FCA and PRA are established and derive their powers, including authorisation, supervision and enforcement.
8What is the primary purpose of the Money Laundering Regulations and the Proceeds of Crime Act 2002 for a regulated firm?
A.To compensate eligible customers for losses when an authorised bank fails
B.To set the interest rate paid by banks on high-risk accounts
C.To prevent firms being used to launder the proceeds of crime
D.To prescribe suitability disclosures for investments bought with savings
Explanation: Anti-money laundering law requires firms to carry out customer due diligence, monitor transactions and report suspicions to prevent criminals disguising the proceeds of crime as legitimate funds. POCA 2002 creates the offences and the duty to report.
9In the customer due diligence process, what does 'Know Your Customer' (KYC) primarily require a firm to do?
A.Confirm only that the customer can afford the first product payment
B.Accept an introducer’s name check without the firm verifying identity
C.Check identity only after the customer has opened and used the account
D.Verify the customer's identity and understand the nature of the relationship
Explanation: KYC is the foundation of customer due diligence: firms must verify a customer's identity, understand the purpose of the relationship and assess money-laundering risk. Enhanced due diligence applies to higher-risk customers such as politically exposed persons.
10An employee in the regulated sector has information meeting the POCA section 330 disclosure threshold. Which routes can satisfy that statutory disclosure duty, subject to the circumstances?
A.Disclosure only to the nominated officer, with direct NCA disclosure legally prohibited
B.Disclosure only to the NCA, even when a nominated-officer route is available
C.A disclosure to the nominated officer or directly to the NCA as the law permits
D.Disclosure to the FCA alone as a substitute for either POCA route
Explanation: Section 330 permits the required disclosure to a nominated officer or to the National Crime Agency. Many firms prescribe an internal first route operationally, but that is not an absolute statutory precondition for an NCA disclosure. Employees must not improperly tip off a subject; POCA section 333A has specific disclosure and prejudice elements.

About the CeMAP Module 1 Exam

CeMAP Module 1, the Financial Services, Regulation and Ethics (FSRE) module, is the first module of the UK CeMAP mortgage-adviser qualification. Under the September 2025 structure it has two units, FRE1 and FRE2, each assessed by 25 standalone MCQs plus 3 case studies of 5 linked MCQs in one hour, with a 70% pass mark per unit.

Exam sponsor: LIBF, part of Walbrook Institute London. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

80 questions

Time Limit

60 minutes per unit (FRE1 and FRE2)

Passing Score

70% per unit

Exam / Certification Fees

£330 for CeMAP Module 1 (includes materials and the first sitting per unit); resits £120 per unit.

Exam sponsor website

Reported exam pass rate: Not published by Walbrook Institute London. Walbrook publishes a 70% pass mark per unit but does not publish an official CeMAP Module 1 pass rate. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

50%

FRE1: Industry, Regulation and Key Parties

Financial-services industry and markets, consumer needs, economic drivers, products, risk, regulators, the FCA Handbook and the UK regulatory framework.

50%

FRE2: Skills, Principles and Ethical Behaviours

Client communication and advice process; conduct and Consumer Duty; record keeping, AML, data protection, complaints, FOS and FSCS; professional ethics and judgement.

Preparing for the CeMAP Module 1 Exam

What You Need to Know

  • Passing score: 70% per unit
  • Exam length: 80 questions
  • Time limit: 60 minutes per unit (FRE1 and FRE2)
  • Exam / certification fees: £330 for CeMAP Module 1 (includes materials and the first sitting per unit); resits £120 per unit. Official sources

Using Our Practice Resources

  • Work through all 258 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CeMAP Module 1: Suggested Study Strategy

1Use materials aligned to the FRE1/FRE2 blueprint in Walbrook's current FSRE specification; older UKFR guides describing two 50-question standalone papers use the retired format.
2Practise case-study questions specifically, because each unit includes three case studies of five linked questions that test applied judgment.
3Memorise key current figures: 70% pass mark, £20,000 ISA allowance, £12,570 personal allowance, £3,000 CGT exemption, FSCS limits and the FOS award limit.
4Learn the roles of the FCA, PRA, Bank of England, FOS and FSCS precisely, as candidates often confuse the conduct and prudential regulators.
5Study ethics and the Consumer Duty as applied scenarios rather than definitions, since FRE2 rewards judgment about acting in the client's best interest.
6Sit FRE1 and FRE2 close together so regulatory knowledge stays fresh, but start each unit only when you are prepared. Current on-demand online delivery does not require advance booking; consistent mock scores above 70% are a suggested readiness check.

Frequently Asked Questions

What is CeMAP Module 1?

CeMAP Module 1 is the Financial Services, Regulation and Ethics (FSRE) module, the first of three modules in the UK CeMAP mortgage-adviser qualification awarded by Walbrook Institute London (formerly LIBF). It covers the UK financial services industry, regulation, ethics, taxation and product basics.

How is CeMAP Module 1 structured under the 2025 changes?

From September 2025, Module 1 is split into two units, FRE1 and FRE2. Each unit has 25 standalone multiple-choice questions plus 3 case studies of 5 linked questions, sat online via Brightspace in one hour.

What is the pass mark for CeMAP Module 1?

Each unit, FRE1 and FRE2, must be passed separately with a score of at least 70%. Both units must be passed to complete Module 1.

How many questions are in each CeMAP 1 unit?

Each unit contains 40 questions: 25 standalone multiple-choice questions and 3 case studies, each with 5 linked multiple-choice questions.

Can I sit FRE1 and FRE2 in any order?

Yes. FRE1 and FRE2 can be sat in either order, although many candidates take FRE1 first because it establishes the regulatory landscape that FRE2 builds on with conduct and ethics.

What topics does CeMAP Module 1 cover?

FRE1 covers the financial services industry, markets and products, consumer needs, legal concepts, regulation and key institutions. FRE2 covers advice skills and conduct, regulation of client relationships, financial crime and data handling, complaints and compensation, and ethical behaviour. The current specification assigns these to FRE1 learning outcomes 1–5 and FRE2 learning outcomes 6–8.

Is CeMAP Module 1 taken online?

Yes. Under the new structure, Module 1 exams are sat online through the Brightspace platform, with the revised specification rolled out from September 2025.

Do CeMAP Module 1 figures use current UK tax and protection limits?

Use figures current for your sitting. From 1 December 2025, FSCS standard deposit protection is £120,000 per eligible depositor per authorised institution. For FOS complaints referred from 1 April 2026 to 31 March 2027, the compulsory money-award limit is £455,000 for acts on or after 1 April 2019 and £205,000 for earlier acts. Interest on the money award, costs and interest on costs are excluded from calculating that limit; non-money directions are separate.

What does CeMAP Module 1 cost?

Walbrook lists CeMAP Module 1 at £330, including study materials and the first sitting in each unit. A resit costs £120 per unit. The full three-module CeMAP costs £735 when purchased together.