CeMAP 1 Practice Test

CeMAP 1 Ethics & Professionalism Practice Questions

Ethics & Professionalism makes up 3 of every 40 questions on a Tigertest CeMAP 1 practice test. Here are 10 of the 15 questions on it, each with the answer and the reason.

Updated 2026-11-10 by the Tigertest team. Based on LIBF's FSRE (CeMAP Module 1) syllabus for FRE1 and FRE2. Original questions; case studies written as single questions. Not affiliated with LIBF or Walbrook Institute London.

1. 1. An ethical theory that judges an action by its results for the greatest number of people is:

   • A.Ethical relativism
   • B.Utilitarianism
   • C.Deontology
   • D.Virtue ethics

   Answer: B. Utilitarianism is a consequentialist theory: the right act produces the best overall outcome. Deontology judges the act itself against duties.

2. 2. An adviser refuses to mislead a client even when it would help the firm, because lying is wrong in itself. This reflects which approach to ethics?

   • A.Ethical egoism
   • B.Consequentialism
   • C.Utilitarianism
   • D.Deontology

   Answer: D. Deontology, associated with Kant, holds that some duties, such as honesty, apply whatever the consequences.

3. 3. Virtue ethics asks mainly:

   • A.What a good person would do
   • B.What most people would vote for
   • C.Which rule the FCA has written
   • D.Which option earns the most

   Answer: A. Virtue ethics, from Aristotle, focuses on character traits such as honesty and fairness rather than on rules or outcomes.

4. 4. A compliance-only mindset asks 'Is it allowed?'. An ethical approach also asks:

   • A.Will the regulator ever notice?
   • B.Is it what competitors do?
   • C.Is it the right thing to do?
   • D.Will it raise this month's sales?

   Answer: C. Compliance checks the rules; ethics also asks whether an action is fair and right for the client. The Consumer Duty expects both.

5. 5. Personal values are best described as:

   • A.Rules set by the employer
   • B.Targets for annual bonuses
   • C.Beliefs that guide choices
   • D.Laws passed by Parliament

   Answer: C. Values are a person's lasting beliefs about what matters. Morals apply them to right and wrong, and ethics turns them into standards of conduct.

6. 6. Which UK law protects workers who make a protected disclosure about wrongdoing?

   • A.Public Interest Disclosure Act 1998
   • B.Consumer Rights Act 2015
   • C.Financial Services Act 2012
   • D.Data Protection Act 2018

   Answer: A. PIDA 1998 protects whistleblowers from unfair dismissal or detriment when they report wrongdoing in the public interest.

7. 7. An adviser offers a lender's underwriter cash to approve a weak application. This is most likely an offence under:

   • A.The Data Protection Act 2018
   • B.The Consumer Rights Act 2015
   • C.The Proceeds of Crime Act 2002
   • D.The Bribery Act 2010

   Answer: D. Offering a payment to induce someone to act improperly is bribery under the Bribery Act 2010. Firms can also commit an offence by failing to prevent bribery by people acting for them.

8. 8. Continuing professional development (CPD) is mainly intended to:

   • A.Count hours only
   • B.Keep skills up to date
   • C.Replace the original qualification
   • D.Increase sales targets

   Answer: B. CPD maintains competence as rules, products and markets change. Good CPD is planned, reflective and relevant to the role.

9. 9. A firm with a strong ethical culture is most likely to:

   • A.Hide complaints from the board
   • B.Encourage staff to raise concerns
   • C.Punish anyone who questions sales
   • D.Reward sales above everything

   Answer: B. Open challenge, fair incentives and leadership by example are signs of good culture. A sales-at-all-costs culture leads to mis-selling.

10. 10. Case: Jamal notices a colleague changing clients' income figures to get mortgages approved. What should he do first?

    • A.Confront the clients
    • B.Change the figures himself
    • C.Ignore it to avoid trouble
    • D.Report it internally

    Answer: D. Falsifying income is mortgage fraud and harms clients. Jamal should raise it internally, and can go to the FCA if the firm does not act.