What you study in CeMAP 1 (FSRE) and why it matters

Posted on January 30, 2026 - 10:07 am by cemap

CeMAP 1 FSRE explained showing financial services, regulation and ethics icons

Many people starting CeMAP are surprised by how much regulation is covered before they reach mortgages. This often leads learners to question why CeMAP 1 exists at all.

CeMAP 1 is not about mortgage products. It is about the rules, responsibilities, and ethical standards that apply to anyone giving regulated mortgage advice in the UK. Without this foundation, mortgage advice cannot be given safely or compliantly.

This article explains exactly what you study in CeMAP 1, what Financial Services, Regulation and Ethics (FSRE) means, how FRE1 and FRE2 are structured and assessed, and why this content matters in real mortgage advice.

What do you study in CeMAP 1?

CeMAP 1 is the first module of the Certificate in Mortgage Advice and Practice. It focuses on financial services regulation, professional conduct, and ethics.

CeMAP 1 does not teach mortgage lending rules or product knowledge. Instead, it explains the regulatory environment in which mortgage advice takes place and the standards advisers are expected to meet.

The module covers Financial Services, Regulation and Ethics (FSRE) and is split into two units:

FRE1: Regulation, legislation and key parties
FRE2: Skills, principles and ethical behaviours

Together, these units provide the regulatory and ethical foundation required before progressing to mortgage-specific study.

What is FSRE in CeMAP?

Financial Services, Regulation and Ethics (FSRE) describes the subject content covered in CeMAP 1.

FSRE focuses on how the UK financial services industry operates, how it is regulated, and how advisers are expected to behave when dealing with clients.

CeMAP is awarded by the London Institute of Banking & Finance, which forms part of the Walbrook Group, and meets the Financial Conduct Authority education requirements for giving mortgage advice in the UK.

FSRE exists to ensure advisers understand not just what they can advise on, but how they must operate when dealing with consumers.

What does FRE1 cover in CeMAP 1?

FRE1 focuses on the structure, regulation, and legal framework of the UK financial services industry.

It explains who regulates financial services, why regulation exists, and how different parts of the system interact.

Regulation of financial services in the UK

FRE1 covers:

The purpose of financial regulation
How regulation has developed over time
The role of statutory regulation in protecting consumers

You study the responsibilities of the Financial Conduct Authority and the Prudential Regulation Authority, including how their roles differ.

This matters for mortgage advisers because all mortgage advice falls under FCA regulation, even when advisers are employed by a firm with its own compliance structure.

Key legislation and legal principles

FRE1 introduces the legal framework that underpins financial advice, including:

How financial services law is created and enforced
The difference between legislation, regulation, and guidance
Legal responsibilities of firms and individuals

This content explains why regulatory rules are enforceable and why breaches can lead to sanctions, complaints, or loss of permissions.

The financial services industry and markets

FRE1 also covers:

The structure of the UK financial services industry
Types of financial institutions and their roles
How money flows through financial markets
The relationship between risk and reward

Although this content is broader than mortgages, it provides context for how mortgage lending fits into the wider financial system.

What does FRE2 cover in CeMAP 1?

FRE2 focuses on adviser behaviour, ethical standards, and the advice process.

While FRE1 explains the system, FRE2 explains how advisers are expected to operate within it.

The advice process and suitability

FRE2 covers the stages of giving regulated advice, including:

Establishing client circumstances and objectives
Assessing suitability
Making appropriate recommendations
Reviewing and maintaining advice

These principles apply directly to mortgage advice, even though the examples are not mortgage-specific.

Ethics and professional standards

A significant part of FRE2 is understanding ethical behaviour in practice.

This includes:

Acting in the client’s best interests
Treating customers fairly
Managing conflicts of interest
Maintaining integrity and professionalism

These principles underpin FCA conduct rules and are central to how adviser behaviour is judged.

Consumer protection and complaints

FRE2 also explains:

Consumer rights and protections
How complaints are handled
The role of redress mechanisms such as the Financial Ombudsman Service

Mortgage advisers must understand these processes because complaints often focus on conduct rather than technical product errors.

How are the FRE1 and FRE2 exams structured?

Both FRE1 and FRE2 exams are structured in exactly the same way. The syllabus content differs, but the assessment format does not.

Each unit is assessed by a one-hour computer-based multiple-choice exam consisting of 40 questions.

Exam question breakdown

Each exam is split into two parts.

Part 1: Case study questions

3 short case studies
Each case study has 5 multiple-choice questions
Total case study questions: 15

These questions test how well learners can apply regulatory and ethical principles to realistic advisory situations.

Part 2: Standalone multiple-choice questions

25 standard multiple-choice questions
These assess knowledge and understanding of the syllabus content

Pass mark and requirements

Pass mark: 70%
Minimum score to pass: 28 out of 40
Exams are taken online via the LIBF assessment platform
FRE1 and FRE2 must both be passed to complete CeMAP 1

The use of case studies reflects how regulation operates in real advisory work, rather than treating it as abstract theory.

Why does FSRE matter in real mortgage advice?

FSRE matters because mortgage advice carries legal and ethical responsibility.

In practice, FSRE knowledge helps advisers:

Understand why certain client information must be collected
Assess suitability correctly
Communicate risks clearly
Avoid inappropriate or misleading advice
Act within regulatory permissions

Most regulatory breaches and complaints relate to conduct and process, not interest rates or product mechanics. FSRE addresses exactly those areas.

Common misconceptions about CeMAP 1 FSRE

“FSRE is just irrelevant law”

FSRE explains the rules that govern every client interaction. These rules exist to protect consumers and advisers alike. Ignoring them does not remove responsibility.

“You don’t use this in real life”

FSRE shapes how advisers assess clients, document advice, and justify recommendations. It influences daily decisions, even when advisers are not consciously thinking about regulation.

“CeMAP 1 has nothing to do with mortgages”

CeMAP 1 provides the regulatory foundation that allows mortgage advice to take place. Without it, advisers would not meet the required professional standards.

What CeMAP 1 does and does not do

CeMAP 1 does:

Explain the regulatory environment for mortgage advice
Set expectations for adviser behaviour
Establish ethical and professional standards

CeMAP 1 does not:

Authorise individuals to give advice
Replace firm-level training or supervision
Teach mortgage products or lending criteria

Passing CeMAP 1 meets education requirements, but advisers must still operate under a regulated firm.

Why CeMAP 1 exists

CeMAP 1 exists because mortgage advice involves risk, responsibility, and consumer protection.

FSRE ensures advisers understand:

The rules they operate under
The standards they are judged against
Their obligations to clients and the wider market

For learners questioning its value, CeMAP 1 is not an academic barrier. It is the foundation of competent, compliant mortgage advice.

CeMAP 1 (FSRE) Frequently Asked Questions

What is CeMAP 1?

CeMAP 1 is the first module of the Certificate in Mortgage Advice and Practice. It covers Financial Services, Regulation and Ethics (FSRE) and explains how the UK financial services industry is regulated and how advisers are expected to behave.

What does FSRE stand for in CeMAP?

FSRE stands for Financial Services, Regulation and Ethics. It describes the subject content covered in CeMAP 1 rather than being a separate qualification.

Is CeMAP 1 about mortgages?

CeMAP 1 is not about mortgage products or lending criteria. It focuses on regulation, ethics, and adviser conduct. Mortgage-specific knowledge is covered later in CeMAP 2.

What is the difference between FRE1 and FRE2?

FRE1 focuses on the structure and regulation of the UK financial services industry, including regulators, legislation, and key parties.
FRE2 focuses on adviser behaviour, ethics, the advice process, and consumer protection.

How many exams are there in CeMAP 1?

There are two exams in CeMAP 1: one for FRE1 and one for FRE2. Both exams must be passed to complete the module.

How are the FRE1 and FRE2 exams structured?

Each exam is one hour long and contains 40 multiple-choice questions. This includes 15 case study questions and 25 standalone multiple-choice questions. The pass mark is 70 percent.

Why does regulation matter for mortgage advisers?

Mortgage advisers give regulated financial advice. Regulation exists to protect consumers and ensure advice is suitable, fair, and ethical. Most complaints and regulatory action relate to conduct, not product choice.

Does passing CeMAP 1 allow you to give mortgage advice?

No. Passing CeMAP 1 meets part of the education requirement, but advisers must also complete CeMAP 2 and 3 and operate under a regulated firm authorised by the Financial Conduct Authority.

Who awards CeMAP 1?

CeMAP is awarded by the London Institute of Banking & Finance, which forms part of the Walbrook Group.

Is CeMAP 1 difficult?

CeMAP 1 is detailed rather than technical. Many learners find it challenging because it covers unfamiliar regulatory content, but it reflects the real responsibilities of working in regulated mortgage advice.

Looking for training support?

We offer CeMAP training for learners working towards a career in mortgage advice. Our courses follow the London Institute of Banking & Finance syllabus and are designed to support understanding of mortgage regulation and advice requirements.

Explore our accredited CeMAP training courses

> Futuretrend Financial Training

Explaining the FCA: Your Guide to CeMAP 1 Regulation

Posted on April 25, 2025 - 12:43 pm by cemap

Struggling to understand the FCA for your CeMAP exam? You’re not alone. The Financial Conduct Authority (FCA) plays a critical role in the mortgage advice process—and understanding that role is essential for passing your CeMAP 1 exam and becoming a competent, compliant adviser.

At Futuretrend, we’ve guided thousands through CeMAP 1—this is just a taste of our full virtual and home‑study courses. With over 25 years of offering training and career guidance as a respected LIBF-accredited training provider, we’re here to break down the regulatory tangle for you.

Ready to tackle one of the most important regulators in UK financial services? Let’s dive in.

What Is the FCA?

The Financial Conduct Authority (FCA) is the main regulator for financial services in the UK. Its core aim is to protect consumers, maintain market integrity and promote competition. For anyone studying CeMAP Unit 1, understanding the FCA role in CeMAP is fundamental.

The FCA was formed in 2013 after the Financial Services Authority (FSA) was disbanded. It now operates independently of the UK government but is accountable to the Treasury and Parliament.

Tutor Tip: You’ll need to remember that while the FCA is responsible for conduct regulation, prudential regulation for large firms is handled by the Prudential Regulation Authority (PRA).

As a CeMAP 1 regulator, the FCA is a cornerstone of the content you’ll face in your assessment. But what exactly does it do?

Key FCA Responsibilities

Authorisation and Supervision

Every mortgage adviser must be authorised or work for a firm that is. The FCA checks that firms and individuals are “fit and proper” to carry out regulated activities.

If you’re aiming to become a mortgage adviser, this is non-negotiable. The FCA responsibilities mortgage adviser candidates need to know include:

Meeting training and competency standards
Maintaining up-to-date knowledge
Adhering to ethical conduct

Tutor Tip: Expect questions on the FCA’s authorisation process and the significance of its approval in CeMAP 1 exams.

Enforcement and Compliance

The FCA holds the power to investigate and penalise firms or individuals who break the rules. This might include fines, suspensions, or even bans.

Mortgage advisers must be especially aware of:

Mis-selling practices
Poor record-keeping
Inadequate suitability assessments

This aligns with learning outcomes around CeMAP financial conduct authority rules on treating customers fairly.

Setting Standards: The FCA Handbook

A key publication is the FCA Handbook, which outlines the rules and guidance for firms. For CeMAP students, you should pay attention to the Conduct of Business Sourcebook (COBS), which governs how advisers interact with clients.

Tutor Tip: Expect scenario-based questions in CeMAP 1 using principles from the Handbook—especially around disclosure and advice standards.

Protecting Consumers

The FCA aims to protect clients from bad advice, financial harm, and unfair treatment. This links directly to its principles of good conduct, such as:

Treating customers fairly (TCF)
Transparency in product information
Fair complaint handling

The FCA also enforces financial promotions rules—ensuring advertising and communications are clear, fair and not misleading.

Preventing Financial Crime

The FCA plays a key role in anti-money laundering (AML) regulation. Mortgage advisers must be trained to spot suspicious activity.

If this area seems fuzzy, then best to look over Money Laundering covered in Topic 23 of CeMAP 1.

Why FCA Knowledge Is Crucial for CeMAP

Mastering the FCA role in CeMAP isn’t just about passing your exam. It’s about building the foundation of your career in financial services. You’ll need to understand:

How regulation affects day-to-day client interactions
The compliance responsibilities of your role
What legal and ethical standards apply in real-world scenarios

In short: If you’re offering mortgage advice, the FCA’s rules are your rulebook.

Test Yourself: Real-World Example

Scenario:
A mortgage adviser promotes a new low-interest product in an email to clients but fails to mention a high arrangement fee.

Question:
Which FCA principle has been breached?

➡️ Drag your mouse over box below to reveal answer

Answer:
The principle of “clear, fair and not misleading” communication.

This kind of practical application is what CeMAP 1 is all about.

Tutor Tip Recap

✅ Know the FCA’s three key objectives: protect consumers, ensure integrity, and promote competition.

✅ Familiarise yourself with the structure of the FCA Handbook.

✅ Be ready to identify how FCA rules apply to real-life adviser behaviour.

✅ Understand how the FCA fits into the broader financial regulatory framework alongside the PRA and HM Treasury.

Ready to Go Deeper?

View and Download our resources free sample and get a taste of Futuretrend’s CeMAP training. It’s packed with practical examples, memory tricks, and tutor-guided walk-throughs.

👉 Download Free CeMAP Resources

Final Thoughts

Understanding the FCA role in CeMAP is not just a box to tick—it’s the backbone of mortgage advice. From authorisation to client care, the FCA sets the tone for how you’ll operate in the industry.

And remember: you don’t have to tackle CeMAP alone. With 25 years in training services and career guidance, Futuretrend is your expert guide through every regulation, revision session, and exam day.

👉 View of CeMAP study options for training support

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Guide to the CeMAP 1 Qualification

Posted on June 17, 2024 - 9:00 am by cemap

Guide to the CeMAP 1 Qualification

This module, officially known as UK Financial Regulation (UKFR), serves as the foundation for your journey into the world of mortgage advice.

In CeMAP 1, you’ll be introduced to the Financial Services Environment and the various financial products that play a crucial role in this sector. It’s not just about mortgages – you’ll gain insight into a range of financial services that are integral to the industry.

Now, let’s break it down further. CeMAP 1 consists of two units, each designed to help you develop the specialist knowledge required in this field.

Unit 1: Introduction to Financial Services Environment and Products

In this unit, you’ll explore the Financial Services Environment, gaining a comprehensive understanding of the landscape you’re stepping into. You’ll also get acquainted with a variety of financial products. This unit lays the groundwork for your journey, providing a solid foundation for the more specialized knowledge you’ll acquire as you progress through the qualification.

Unit 2: UK Financial Services and Regulations

Moving on to the second unit, you’ll delve into the rules and regulations that govern the UK Financial Services sector. Understanding the regulatory landscape is crucial for any Mortgage Adviser. This unit equips you with the knowledge needed to navigate the legal aspects of providing financial advice.

The LIBF state that your CeMAP studies on whole will cover things like

the process and structure of the UK financial services industry
the financial conduct authority’s main aims and activities
the rules and regulations and the FCA’s approach to regulating firms and individuals
the main areas of financial advice asset classes and financial services products
the impact of socio-economic factors on personal financial plans

More specifically your studies for CeMAP 1 will include the

UK financial services industry structure
financial asset classes
financial services products
financial advice and regular reviews
basic legal concepts
UK taxation the benefit system
inflation
interest rate volatility
non-tax laws
regulation
conduct of business rules
anti-money laundering rules
complaints and compensation
the EU general data protection regulation and
European directives

As you can see, CeMAP 1 is all about building a strong foundation. Whether you’re new to the financial services sector or looking to enhance your existing knowledge, these units are tailored to provide you with the insights necessary to excel in your role as a Mortgage Adviser

The entire CeMAP qualification typically spans 6 to 12 months, providing you with a comprehensive learning journey. When it comes specifically to CeMAP 1, if you’re pursuing it through self-study, you can expect to invest around two to four months to complete this module.

However, we understand that time is of the essence for many aspiring Mortgage Advisers. That’s where Fast Track training options come into play. There are programs, such as the Futuretrend 5-day CeMAP 1 Live Virtual Classroom, designed to accelerate your learning process. These intensive courses aim to support you in completing the first module within just a few weeks.

CeMAP 1 Exam

Now that we’ve covered what CeMAP 1 involves, let’s talk about the moment that many of you are gearing up for – the exam.

To start, you’ll need to register with the awarding body, The London Institute of Banking and Finance, also known as LIBF.

Each module, including CeMAP 1, currently costs £215. This fee covers your registration, a hard copy of the syllabus, and a single exam sitting for that module.

The CeMAP 1 exam is a crucial step in your journey toward becoming a qualified Mortgage Adviser. Here are some key details you need to know.

Exam Format:

The CeMAP 1 module is assessed through a 2-hour exam comprising 100 multiple-choice questions. This exam is split into the two units we discussed earlier.

Time and Questions Allocation:

For each unit, you have 1 hour to answer 50 questions. That’s 2 minutes per question, so time management is key.

Pass Mark:

The pass mark for each unit is 70%, meaning you need to correctly answer 35 out of 50 questions in each section to pass.

Module Grading:

Each module is graded separately. If, for any reason, you don’t pass a unit, you only need to retake that specific unit, not the entire exam.

Results:

After completing the exam, you won’t have to wait long for the results. You’ll receive them on the same day via your LIBF Portal.

Preparing for the CeMAP 1 exam can be challenging, but with the right resources and study approach, you’ll be well-equipped to succeed.

Next Steps / What Comes Next

Once you have successfully navigated through CeMAP 1, and passed the exam, what comes next?

To complete your CeMAP qualification, your journey continues with the CeMAP 2&3 course.

CeMAP 2 focuses on mortgages, giving learners a thorough grounding in the mortgage application process, including the different products available and the issues borrowers may face after completion.

Look out for future post where we’ll cover the CeMAP 2 Module in detail. We’ll explore the syllabus, study options, and insights to help you excel in this next phase of your CeMAP journey.

To conclude, CeMAP 1 is not just a module; it’s the foundational step toward achieving your full CeMAP qualification. Making a solid start here sets you on a path for success throughout your entire qualification journey.

If you have any questions or uncertainties regarding CeMAP 1, feel free to drop them in the comment section below. We’re here to help, and we’ll get back to you with the information you need.

For more in-depth information or to book your CeMAP training course online, visit our CeMAP course pages on our website. If you prefer a chat, don’t hesitate to call our friendly learning and development team on 020 8443 2888. They’re here to discuss any queries you may have or to assist you in booking your course over the phone.