Question 1

What is CeMAP Module 1?

Accepted Answer

Module 1 is Financial Services, Regulation and Ethics (FSRE). It's assessed in two separate exams, FRE1 and FRE2. LIBF suggests taking FRE1 first, then MRT1, then FRE2, but you can take the units in any order.

Question 2

What is the FRE1 and FRE2 exam format?

Accepted Answer

Each is a 1-hour exam with 25 standalone multiple-choice questions and 3 case studies with 5 linked questions each: 40 questions in total, one answer from four for each. You need 28/40 (70%) to pass, 80% for a merit and 90% for a distinction.

Question 3

What does FRE1 cover?

Accepted Answer

FRE1 (Industry, Regulation and Key Parties) covers the UK financial services industry and markets, the main asset classes, the role of government and the Bank of England, and the main types of financial crime; how consumers' financial needs are met; legal concepts including contract and agency, powers of attorney, property ownership, insolvency and bankruptcy, wills, intestacy and trusts; the development of UK regulation; and the FCA's and PRA's objectives, powers and Handbook, including the Senior Managers and Certification Regime.

Question 4

What does FRE2 cover?

Accepted Answer

FRE2 (Skills, Principles and Ethical Behaviours) covers the skills involved in advising clients, including fact-finding, analysis, recommendations and insistent clients; the Principles for Businesses and conduct rules; anti-money-laundering, data protection, complaints handling, the Financial Ombudsman Service and the FSCS; the advice framework, including disclosure, adviser charging, cancellation rights and vulnerable clients; and ethics, including codes of conduct, ethical dilemmas and whistleblowing.

Question 5

Are MCOB mortgage rules part of Module 1?

Accepted Answer

No. The FCA's mortgage conduct rules (MCOB) are examined in the mortgage units, MRT1 and MRT2, and applied in the ASEW case-study exam, rather than in FRE1 or FRE2.

Question 6

How does CeMAP Ready's Module 1 practice fit the syllabus?

Accepted Answer

Our Module 1 questions are grouped into our own study topics. Mock exams only use questions we've matched to the FRE1 or FRE2 syllabus, and both FRE1 and FRE2 mocks follow the real format: 25 questions plus 3 case studies, in 1 hour.