HKSI Licensing Examination (SFC LE) FAQ

Q1: Who runs the HKSI Licensing Examination (SFC LE)? Do I need to take it?

The syllabus is set by the Securities and Futures Commission (SFC) and the exam is administered by the Hong Kong Securities and Investment Institute (HKSI Institute). Anyone intending to carry on an SFC regulated activity (RA 1-13) as a licensed or registered person must meet the competence requirements for that RA, which include passing the relevant combination of papers.

Q2: Which papers do I need for a securities licence? How do RAs map to papers?

A licensed representative for Type 1 (dealing in securities) takes Papers 1 + 7 + 8 - the combination known as "1, 7 and 8". Type 4 (advising on securities) and Type 8 (securities margin financing) are the same. Other common combinations: Types 2 and 5 (futures) are Papers 1 + 7 + 9; Type 6 (corporate finance) is Papers 1 + 7 + 11; Type 9 (asset management) is Papers 1 + 7 + 12; Type 10 (credit rating) is Papers 1 + 7 + 10; Type 13 (depositary services) is Papers 1 + 7 + 19. Type 3 (leveraged foreign exchange trading) uses VTC examinations instead, and Type 7 (automated trading services) has no paper requirement. See paragraphs 4.3.2.1 and 4.3.3.1 of the SFC Guidelines on Competence.

Q3: How many questions, how long, and what is the pass mark?

All papers are computer-based multiple-choice, with a pass mark of 70% per paper. Papers 1 and 7 are 60 questions in 90 minutes; Paper 11 is 40 questions in 90 minutes; all other papers are 40 questions in 60 minutes. Papers are enrolled for and passed independently.

Q4: What is Paper 1 and why does almost everyone take it?

Paper 1, Fundamentals of Securities and Futures Regulation, is what the SFC calls a Local Regulatory Framework Paper (LRP). It covers the structure of the Securities and Futures Ordinance, the SFC's regulatory functions, licensing requirements, the Code of Conduct and the anti-money-laundering framework. Except for Type 3 (which uses VTC papers) and Type 7 (no requirement), the LRP requirement for Types 1 to 13 is always Paper 1.

Q5: Can I be exempted from Papers 7 and 8? Does a CFA get me out of them?

Two different mechanisms get confused here. First, the SFC accepts the industry qualifications listed in Appendix C of the June 2011 Guidelines (CFA, relevant degrees and so on) as satisfying the Recognised Industry Qualification; qualifications obtained elsewhere may also be accepted with documents demonstrating equivalence. That is meeting the requirement another way, not an exemption. Second, an actual RIQ exemption (paragraph 4.4.2) applies if you have been a licensee within the past three years or are a current licensee and the new RA has the same RIQ requirements in the same role, or if you apply for a temporary licence for Types 1, 2, 4, 5, 6, 10 or 11. A conditional exemption exists for current licensees with five years of related local experience over the past eight years moving to an RA with different RIQ requirements in the same role, subject to five additional CPT hours.

Q6: Can Paper 1 be exempted?

You can apply. Full exemption applies if (a) you have been a licensee within the past three years or are a current licensee with the same LRP requirement in the same role; (b) you apply for a temporary licence for Types 1, 2, 4, 5, 6, 10 or 11; or (c) you have worked in regulatory or compliance work in Hong Kong, full-time, for at least three years over the past six years, in the same regulated activity. Responsible Officers have a further conditional exemption. The SFC may also approve a licence on condition that you pass the LRP within six months of approval - failing that can invalidate the approval. All exemptions are discretionary and non-transferable: a change of role or sponsoring firm can put the requirement back.

Q7: Where do I enrol, what does it cost, and how often does each paper run?

Open an examination account on the HKSI Institute website and enrol paper by paper. At Hong Kong centres, Papers 1 and 7 cost roughly HK$1,620-1,800 and other papers HK$1,620-2,000; at global centres, roughly HK$2,070-2,250 and HK$2,070-2,450. Most papers run monthly; Papers 4 and 10 run quarterly in Hong Kong and monthly globally; Paper 15 runs bi-monthly in Hong Kong and monthly globally. Confirm sittings and fees with HKSI Institute.

Q8: How many papers are there, and what are Papers 13 and 14?

The papers currently offered are 1-12 and 15-19, 17 in total. Papers 13 and 14 have not been introduced yet - they will launch when the new licensing regime for Type 12 RA (client clearing for OTC derivative transactions) takes effect. Many third-party sources still list 13 and 14 as current, so confirm against HKSI Institute before enrolling.

Q9: What language is the exam in, and can I resit?

Every paper is offered in English and Traditional Chinese, and you choose which to sit. Papers are passed independently, and there is no limit on resits. Resit arrangements follow HKSI Institute rules.

Q10: Where can I find LE practice questions and official study material?

HKSI Institute publishes an official Study Manual for each paper, available on its website. The SFC website carries the Code of Conduct, the Securities and Futures Ordinance and the Guidelines on Competence in full. PrepLicense: HK SFC covers all 17 papers with bilingual practice questions and mock exams aligned to the official syllabus, with English and Chinese explanations - best used alongside the official manuals.

Free study resources

• HKSI Licensing Examination overview
• HKSI Institute — registration / dates / Study Manuals
• Securities and Futures Commission (SFC)
• SFC Code of Conduct (English official text)