What is the difference between FRE1 and FRE2?

August 20, 2026 by Brendan O'Neill

CeMAP

The CeMAP course underwent a series of changes in 2025. The London Institute of Banking and Finance (LIBF) overhauled the course to make it more relevant to the mortgage industry of 2026.

Before the changes, CeMAP 1 was known as ‘UK Financial Regulation’ (UKFR). This was replaced by ‘Financial Services, Regulation and Ethics’ (FRSE). The new module was made up of two units, called FRE1 and FRE2. In this blog, we will explain how they differ from each other.

FRE1: Industry, Regulation and Key Parties.

This unit concentrates on providing students with an overarching view of the UK financial services sector and its environment. Among the key subjects it covers are the main financial system components and the objectives and purpose of industry regulation. As part of this unit, prospective advisors will learn what the roles of the two main industry regulators are – the Bank of England (BoE) and the Financial Conduct Authority (FCA).

FRE1 also covers the primary institutions that a mortgage advisor deals with, such as building societies, banks and credit unions. It provides an overview of the mortgage, tax, pensions and investment products offered by them.

Finally, this module covers the most crucial regulation that advisors need to comply with. This means data protection, consumer credit and anti-money laundering legislation.

FRE2: Skills, Principles and Ethical Behaviours

The focus in this module is how a qualified mortgage advisor should carry out this role. This means how they should communicate with their clients, how to gather the necessary data and assess client needs so that appropriate recommendations can be made. It also covers how to support vulnerable clients and the main ethical concerns for a mortgage advisor. These include how to conduct yourself with integrity and avoid conflicts of interest.

During FRE2, advisors will learn how to apply the FCA’s Conduct of Business Sourcebook (COBS) in real-world scenarios. They will also be taught their responsibilities under the Consumer Duty and Treating Customers Fairly (TCF) regulations set out by the FCA.