FRE1 · Industry, Regulation and Key Parties
The three FRE1 case studies carry 15 of the 40 marks, and you need 28 to pass. Each case gives you one client situation and five linked questions, and each question tests a different rule: a death in the family brings survivorship, intestacy and inheritance tax into one scenario; a new brokerage brings authorisation, SM&CR and Training and Competence. Candidates rarely fail these for lack of knowledge. They fail by misreading one fact, such as how a home is held or whether a child is under 18, and losing several marks in a row. This note gives you a reading method, a fact-to-rule map, the legal and regulatory traps examiners set, and worked mini-examples.
11 min read6 sections
Checked against: Walbrook (formerly LIBF) FSRE specification v7 (July 2026), Appendix 1: FRE1 assessment methodology and LO1-LO5; Administration of Estates Act 1925 ss46-47; Mental Capacity Act 2005 ss9, 12, 16; Insolvency Act 1986 ss267-268; FSMA 2000 ss19, 23, 39, 133; FCA Handbook DEPP 6.7.3G, PRIN 2.1.1R, COCON 2.1; POCA 2002 ss330, 333A, 335; fscs.org.uk; gov.uk; checked 11 Oct 2026. Independent prep, not endorsed by Walbrook (formerly LIBF).
Walbrook's FSRE specification (v7, July 2026, Appendix 1) splits the one-hour FRE1 exam into two parts: 25 standalone multiple-choice questions, then 3 case studies each followed by 5 linked questions. Every question has four options and is worth one mark. You need 28 of 40 (70%) to pass; 32 earns a merit and 36 a distinction.
| Part | Questions | Marks | Suggested time |
|---|---|---|---|
| Standalone MCQs | 25 | 25 | About 35 minutes |
| Case studies | 3 cases x 5 questions | 15 | About 20 minutes (6-7 per case) |
| Review flagged questions | - | - | About 5 minutes |
The five questions in a case share one scenario but test different rules, often from different learning outcomes. A family case can combine survivorship and intestacy (LO3) with inheritance tax (LO1). A new-brokerage case can combine authorisation, SM&CR and Training and Competence (LO5) with outsourced compliance support (LO4).
Each question is marked on its own, so one misread fact can cost you two or three marks in a row. Reading method matters more here than in the standalone part.
Trap: treating a case as one topic. Examiners put a property law point, a regulatory point and a calculation into the same scenario.
Every note. Every question. One pass.
4 more sections of this note are part of Premium.
From ≈£2.72/mo on the Until-you-qualify pass (18 months)
Takeaway: Three cases, five questions each, 15 marks. Allow about 20 minutes and expect every question to test a different rule.
Read the five question stems before the scenario. Each stem tells you what to look for: 'who owns the home' sends you to how it is held; 'how much passes to the children' sends you to the intestacy figures; 'what must she do' sends you to a legal duty. Then read the scenario once and mark the facts examiners build answers on:
Worked example. The scenario says a husband and wife owned their home as beneficial joint tenants, and the question asks how much passes to the children on intestacy. That single phrase tells you to leave the home out of the calculation, because it passed to the wife by survivorship (Law of Property Act 1925 s36; common law survivorship). A candidate who skims adds the husband's half of the home and picks the much larger figure the examiner has placed among the options.
Use only the facts given. If the scenario does not mention a will, there is no will. If it does not say a firm is authorised or exempt, do not assume either.
Trap: importing facts that are not in the scenario, or overlooking one that is, such as a child's age or the words 'appointed representative'.
Takeaway: Stems first, then the scenario. Mark relationships, ownership, status, numbers and dates. Answer only from the facts you are given.
