Your Guide to CeMAP Module 1: FRE1, FRE2 and the FSRE Exam (2026)

CeMAP Module 1 changed significantly in September 2025. The two old exam units — known informally as UKFR Unit 1 and Unit 2 — were replaced by a revised specification under the names FRE1 and FRE2. If your study materials or revision guides still reference “Unit 1” or “UKFR”, they are out of date. This guide covers the 2026 structure as it stands.

What is CeMAP Module 1?

CeMAP (Certificate in Mortgage Advice and Practice) Module 1 is the first section of the CeMAP qualification — the standard route to becoming a FCA-regulated mortgage adviser in the UK. Under the current LIBF (London Institute of Banking & Finance) specification, it is officially titled the Financial Services, Regulation and Ethics (FSRE) module.

It covers the regulatory and ethical environment that underpins all mortgage advice — the rules you are working within every day as an adviser. Before you can advise a client on any mortgage product, you need to demonstrate you understand the framework those products sit inside.

CeMAP Module 1 is assessed in two units — FRE1 and FRE2 — which you can sit in either order, though most students take FRE1 first as it establishes the regulatory landscape before FRE2 builds on it with conduct and ethics.

What changed in September 2025?

LIBF rolled out a revised CeMAP specification from September 2025, with online exams becoming available on the Brightspace platform from November 2025. The changes affect the naming, structure, and exam format of all three CeMAP modules.

For Module 1, the most important changes are:

• The old “UKFR” title (UK Financial Regulations) is retired. The module is now officially FSRE.
• “Unit 1” and “Unit 2” are now FRE1 and FRE2 respectively.
• The old format of 50 multiple-choice questions per unit is replaced by 25 MCQs plus 3 case studies per unit.
• Case studies introduce scenario-based questions — you read a client situation and answer 5 linked questions about it.

What does FRE1 cover?

FRE1 is the first of the two FSRE units. Its full name is Industry, Regulation and Key Parties. It focuses on the structure of the UK financial services industry and the regulatory framework that governs it.

The key topic areas in FRE1 include:

• The role of the Financial Conduct Authority (FCA) and its regulatory powers
• Key organisations in financial services: banks, building societies, credit unions, friendly societies
• The Bank of England and its role in monetary policy and financial stability
• Anti-money laundering legislation and the obligations of regulated firms
• Consumer credit regulation and the rules around lending
• Consumer rights and complaint procedures, including the Financial Ombudsman Service
• Data protection (UK GDPR) and its application in financial services
• Buy-to-let mortgage regulation and the key exemptions from FCA oversight

In our experience, the topics students find hardest in FRE1 are the specific details around FCA regulatory permissions and the nuances of what does and does not fall under FCA regulation. Buy-to-let mortgages taken out for business purposes are a perennial exam question — because they sit outside FCA regulation, which catches many candidates by surprise.

What does FRE2 cover?

FRE2 — Skills, Principles and Ethical Behaviours — builds on FRE1 by focusing on how regulated advisers are expected to behave. Where FRE1 establishes the rules, FRE2 explores how to apply them.

Key FRE2 topics include:

• The FCA’s Conduct of Business Sourcebook (COBS) and the rules around advice quality
• The FCA Consumer Duty — the new outcomes-based standard for how firms treat customers
• Ethical principles for financial advisers
• Treating Customers Fairly (TCF) and the move to Consumer Duty
• The advice process: fact-finding, suitability, recommendations, and records
• Vulnerable customers and how FCA guidance requires them to be identified and supported
• Conflicts of interest, inducements, and professional standards
• The role of the Financial Services Compensation Scheme (FSCS)

FRE2 tends to require more applied thinking. The case studies in this unit often present ethical dilemmas or client situations where you need to identify the correct approach — not just recall a rule. In our training, we find that students who can explain why a regulation exists pass FRE2 more readily than those who are purely memorising definitions.

What does the CeMAP Module 1 exam look like?

Both FRE1 and FRE2 follow the same exam format. Each is a separate, one-hour exam taken on the Brightspace platform (LIBF’s online exam system).

Each unit contains:

• 25 standard multiple-choice questions — one correct answer from four options
• 3 case studies, each with 5 linked multiple-choice questions — making 15 scenario-based questions in total
• 40 marks per unit in total

The case studies present a brief client scenario — typically 3 to 5 sentences describing a client’s situation, adviser actions, or regulatory context — followed by 5 questions that test your ability to apply your knowledge to that specific situation. You cannot answer case study questions from memory alone; you need to read the scenario and reason through it.

The case study format is actually good news. It tests whether you understand the material — and students who genuinely understand it score higher than those who just memorise facts for the standard questions. Jay Lee, uAcademy

What score do you need to pass CeMAP Module 1?

The pass mark for both FRE1 and FRE2 is 70%. The grading bands are:

You must pass each unit separately. If you pass FRE1 but fail FRE2, you only resit FRE2 — you do not lose your FRE1 result. This is the same principle as the old specification. We recommend aiming for at least 80% on your mock exams before booking the real thing — that buffer matters when nerves are involved.

How do you pass CeMAP Module 1 first time?

Having trained over 5,000 students through CeMAP, we have a clear picture of what separates first-time passers from those who resit. The difference is almost never raw intelligence — it is almost always study structure and approach.

One thing we tell all our students: the most common mistake is skipping regulation topics because they feel dry. FCA rules, consumer credit, and AML legislation make up a large proportion of FRE1 marks. Skimming them leaves a hole you cannot fill with strong performance elsewhere.

Are there any exemptions from CeMAP Module 1?

Yes. If you have already completed the FSRE unit of the Diploma for Financial Advisers (DipFA), you are exempt from CeMAP Module 1 entirely. You can proceed directly to CeMAP Modules 2 and 3 — FRE1 and FRE2 are not required.

This exemption exists because the DipFA FSRE and CeMAP FSRE cover substantially the same regulatory content. LIBF recognises prior achievement to avoid candidates duplicating work they have already done.

If you hold CeFA (Certificate for Financial Advisers) from the Chartered Insurance Institute (CII), there is no automatic exemption — each qualification has a separate entry point. If you are in this situation, contact LIBF directly to confirm your position before registering.

For everyone else — no prior financial services experience or qualifications are required to start CeMAP. It is open to complete career changers, and the majority of our students come from non-financial backgrounds.

Frequently asked questions