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100+ Free CeMAP Module 1 Practice Questions

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CeMAP Module 2 — Mortgages (LIBF)

Practice Questions
2026 Statistics

Key Facts: CeMAP Module 1 Exam

100 questions

Module 1 total across two units, FRE1 (50) and FRE2 (50)

LIBF - Improvements to CeMAP from 30 September 2025

70%

Pass mark required in each CeMAP Module 1 unit

LIBF - Improvements to CeMAP from 30 September 2025

1 hour

Time limit for each unit of 50 multiple-choice questions

LIBF (Walbrook Institute London) - FSRE

Level 4

FSRE moved to Ofqual Level 4 under the new syllabus

LIBF - Improvements to CeMAP from 30 September 2025

30 Sept 2025

Date UKFR was replaced by FSRE for CeMAP Module 1

LIBF - Improvements to CeMAP from 30 September 2025

2 units

Module 1 is assessed as FRE1 and FRE2, each marked separately

LIBF - Improvements to CeMAP from 30 September 2025

LIBF

London Institute of Banking & Finance awards the CeMAP qualification

LIBF - Financial and Mortgage Advice qualifications

100

Free original practice questions here

OpenExamPrep

CeMAP Module 1 - Financial Services, Regulation and Ethics (FSRE) - is the foundation module of the LIBF Certificate in Mortgage Advice and Practice. From 30 September 2025 it was renamed from UK Financial Regulation (UKFR) to FSRE and moved to Level 4. It is assessed as two units, FRE1 and FRE2, each with 50 multiple-choice questions, a one-hour limit and a 70% pass mark, so the module totals 100 questions. It covers the UK financial services industry, the regulatory framework (FSMA, FCA, PRA, SM&CR), consumer protection (FOS and FSCS), data protection, anti-money laundering and ethics including the Consumer Duty. This 100-question bank gives original single-best-answer practice modelled on those areas.

Sample CeMAP Module 1 Practice Questions

Try these sample questions to test your CeMAP Module 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which body is the UK's lead conduct regulator for retail financial services firms, including mortgage advisers?
A.The Bank of England
B.The Financial Conduct Authority (FCA)
C.The Prudential Regulation Authority (PRA)
D.The Financial Ombudsman Service (FOS)
Explanation: The Financial Conduct Authority (FCA) is the conduct regulator for around 50,000 firms and is responsible for how firms treat customers. Mortgage advice is a regulated activity supervised by the FCA.
2The legislation that provides the main statutory framework for regulating financial services in the UK is the:
A.Consumer Credit Act 1974
B.Financial Services and Markets Act 2000 (FSMA)
C.Companies Act 2006
D.Data Protection Act 2018
Explanation: The Financial Services and Markets Act 2000 (FSMA) is the principal statute that established the regulatory regime and gives the FCA and PRA their powers. It defines regulated activities and the general prohibition on carrying them on without authorisation.
3Which regulator is primarily responsible for the prudential safety and soundness of banks, building societies and insurers?
A.The Financial Conduct Authority (FCA)
B.The Prudential Regulation Authority (PRA)
C.The Financial Ombudsman Service (FOS)
D.The Money and Pensions Service
Explanation: The Prudential Regulation Authority (PRA), part of the Bank of England, prudentially regulates banks, building societies, credit unions, insurers and major investment firms. Its general objective is the safety and soundness of those firms.
4An adviser tells a client that money held in a bank protected by the Financial Services Compensation Scheme (FSCS) is covered up to a certain limit per person per banking licence. What is that deposit protection limit?
A.GBP 50,000
B.GBP 85,000
C.GBP 100,000
D.GBP 170,000
Explanation: The FSCS protects eligible deposits up to GBP 85,000 per person per authorised banking institution. The limit is doubled to GBP 170,000 for eligible joint accounts because each holder is covered separately.
5A customer is unhappy with how a mortgage firm handled their case and the firm has issued its final response. The customer wants an independent, free way to have the complaint reviewed. Which body should they contact?
A.The Financial Services Compensation Scheme (FSCS)
B.The Financial Ombudsman Service (FOS)
C.The Prudential Regulation Authority (PRA)
D.The Competition and Markets Authority (CMA)
Explanation: The Financial Ombudsman Service (FOS) resolves disputes between consumers and financial firms that are still trading, free of charge to the consumer. It can be approached after the firm's final response or once eight weeks have passed.
6The FCA Principles for Businesses are high-level standards that apply to authorised firms. Which Principle requires a firm to conduct its business with integrity?
A.Principle 1
B.Principle 6
C.Principle 9
D.Principle 11
Explanation: Principle 1 states that a firm must conduct its business with integrity. It is the first of the FCA's Principles for Businesses and sits at the heart of the conduct regime.
7Which FCA Principle is most directly associated with the requirement to treat customers fairly?
A.Principle 2
B.Principle 4
C.Principle 6
D.Principle 8
Explanation: Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. It underpins the FCA's Treating Customers Fairly initiative.
8The FCA's Consumer Duty is built around a Consumer Principle. Which statement best describes that overarching principle?
A.Firms must act to deliver good outcomes for retail customers
B.Firms must maximise shareholder value
C.Firms must avoid all customer complaints
D.Firms must offer the lowest price in the market
Explanation: The Consumer Duty's Consumer Principle requires a firm to act to deliver good outcomes for retail customers. It is supported by cross-cutting rules and four outcomes covering products, price and value, understanding and support.
9The Consumer Duty sets out four specified outcomes. Which of the following is one of those four outcomes?
A.Capital adequacy
B.Price and value
C.Solvency margin
D.Reserve requirements
Explanation: The four Consumer Duty outcomes are products and services, price and value, consumer understanding and consumer support. Price and value requires the price a customer pays to be reasonable relative to the benefit they receive.
10Under the Senior Managers and Certification Regime (SM&CR), individuals holding the most senior roles requiring FCA approval hold:
A.Certification functions
B.Senior Management Functions (SMFs)
C.Appointed representative roles
D.Introducer agreements
Explanation: Senior Management Functions (SMFs) are the most senior roles under SM&CR and require FCA (and sometimes PRA) pre-approval. Each Senior Manager must have a statement of responsibilities.

About the CeMAP Module 1 Exam

CeMAP Module 1 - Financial Services, Regulation and Ethics (FSRE) - is the foundation module of the Certificate in Mortgage Advice and Practice (CeMAP), the main qualification for mortgage advisers in the UK. It is awarded by the London Institute of Banking & Finance (LIBF). From 30 September 2025 the module was restructured and renamed from UK Financial Regulation (UKFR) to FSRE and moved to Ofqual Level 4. Module 1 is assessed as two units, FRE1 and FRE2, each consisting of 50 multiple-choice questions with a 70% pass mark and a one-hour time limit. The module covers the purpose and structure of the UK financial services industry and its main products; the regulatory framework, including the Financial Services and Markets Act, the FCA and PRA, the FCA Principles and the Senior Managers and Certification Regime; consumer protection through the Financial Ombudsman Service and the Financial Services Compensation Scheme; data protection under UK GDPR; anti-money laundering and financial crime; and professional ethics, treating customers fairly and the Consumer Duty.

Assessment

Module 1 is assessed as two units. FRE1 and FRE2 each contain 50 standalone multiple-choice questions, giving 100 questions for the module. There are no case-study questions in Module 1.

Time Limit

1 hour per unit: 1 hour for FRE1 and 1 hour for FRE2, sat as two separate online exams (2 hours total for the module).

Passing Score

70% in each unit. You must reach 70% in both FRE1 and FRE2 to pass CeMAP Module 1.

Exam Fee

The first exam attempt is included in the LIBF registration fee for each unit (Module 1 is registered as FRE1 and FRE2). LIBF also sells an optional specimen exam covering the whole module for around GBP 40. (London Institute of Banking & Finance (LIBF), operated by Walbrook Institute London)

CeMAP Module 1 Exam Content Outline

20%

The UK financial services industry

Purpose of the UK financial services industry and the main types of provider; banking and savings, protection and insurance, pensions and investments, and an overview of mortgages. Practice here covers how products meet consumer needs, the roles of banks, building societies, insurers and advisers, and the difference between deposit-taking, lending and investment business.

35%

The UK regulatory framework

The Financial Services and Markets Act as the basis for regulation; the roles of the FCA and PRA; the FCA Principles for Businesses and conduct rules; authorisation and the regulated activities regime; and the Senior Managers and Certification Regime (SM&CR). Practice here focuses on who regulates what, the FCA's operational objectives and how conduct rules apply to individuals and firms.

25%

Consumer protection

The Financial Ombudsman Service (FOS) and how disputes are resolved; the Financial Services Compensation Scheme (FSCS) and its limits; firms' complaint-handling obligations; and data protection under UK GDPR. Practice here covers eligibility, compensation limits, time limits and the difference between the FOS and the FSCS.

20%

Financial crime and ethics

Anti-money laundering controls and the money-laundering offences; reporting suspicious activity; treating customers fairly; professional standards and conflicts of interest; and the FCA Consumer Duty. Practice here covers customer due diligence, the role of the nominated officer, and applying the Consumer Duty's good-outcomes requirements to mortgage advice.

How to Pass the CeMAP Module 1 Exam

What You Need to Know

  • Passing score: 70% in each unit. You must reach 70% in both FRE1 and FRE2 to pass CeMAP Module 1.
  • Assessment: Module 1 is assessed as two units. FRE1 and FRE2 each contain 50 standalone multiple-choice questions, giving 100 questions for the module. There are no case-study questions in Module 1.
  • Time limit: 1 hour per unit: 1 hour for FRE1 and 1 hour for FRE2, sat as two separate online exams (2 hours total for the module).
  • Exam fee: The first exam attempt is included in the LIBF registration fee for each unit (Module 1 is registered as FRE1 and FRE2). LIBF also sells an optional specimen exam covering the whole module for around GBP 40.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CeMAP Module 1 Study Tips from Top Performers

1Learn the difference between the FCA and the PRA early: the FCA regulates conduct for all firms and is the lead prudential regulator for most mortgage and advice firms, while the PRA prudentially regulates banks, building societies, insurers and major investment firms.
2Memorise the key consumer-protection numbers, such as the FSCS deposit limit and the FOS award limits, and be ready to apply them to short adviser scenarios rather than just recall them.
3Get comfortable with the Consumer Duty's structure: the consumer principle, the cross-cutting rules and the four outcomes (products and services, price and value, consumer understanding and consumer support).
4Practise distinguishing the FOS from the FSCS: the FOS resolves disputes with firms that are still trading, while the FSCS pays compensation when an authorised firm has failed and cannot meet claims.
5Revise the money-laundering basics, including customer due diligence, the role of the nominated officer or MLRO and when a Suspicious Activity Report must be made, because Module 1 tests financial-crime awareness.
6Use lots of timed multiple-choice practice at roughly one minute per question so you build speed and accuracy for the 50-question, one-hour units.

Frequently Asked Questions

How many questions are in CeMAP Module 1?

Module 1 (FSRE) has 100 multiple-choice questions in total, split across two units: 50 questions in FRE1 and 50 questions in FRE2. Each unit is a separate online exam.

What is the pass mark for CeMAP Module 1?

The pass mark is 70% in each unit. You must reach 70% in both FRE1 and FRE2 to pass Module 1; the units are marked separately.

What changed when UKFR became FSRE in 2025?

From 30 September 2025 LIBF renamed CeMAP Module 1 from UK Financial Regulation (UKFR) to Financial Services, Regulation and Ethics (FSRE), moved it to Ofqual Level 4, deepened the content and split it into two units, FRE1 and FRE2.

How long do I have for each unit?

Each unit has a one-hour time limit for its 50 multiple-choice questions, so the whole module takes about two hours of exam time across the two sittings.

Who awards CeMAP and how is the exam taken?

CeMAP is awarded by the London Institute of Banking & Finance (LIBF). The exams are computer-based multiple-choice tests taken online with remote invigilation or at a test centre.

Are these official LIBF practice questions?

No. These are original OpenExamPrep questions modelled on the FSRE syllabus areas. LIBF provides its own learning materials and a paid specimen exam separately.