SFC Licence Exam — Complete Guide 2026

Key points

• The securities licence (Type 1) is Papers 1 + 7 + 8 — the combination people call "1, 7 and 8". Types 4 and 8 are the same.
• Pass mark is 70% per paper. Each paper is enrolled for and passed independently, and there is no limit on resits.
• Papers 13 and 14 do not yet exist. The papers currently offered are 1–12 and 15–19 — 17 in total.
• Exemptions are granted case by case by the SFC and are non-transferable — changing role or sponsoring firm can put the requirement back.

What is the HKSI Licensing Examination?

The HKSI Licensing Examination (LE, commonly "the SFC exam") has its syllabus set by the Securities and Futures Commission (SFC) and 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 papers.

The SFC splits the paper requirement into two layers:

• Local Regulatory Framework Paper (LRP) — tests the Hong Kong regulatory regime. Except for Types 3 and 7 this is always Paper 1.
• Recognised Industry Qualification (RIQ) — tests industry knowledge, varies by RA, and generally comprises Paper 7 plus one specialist paper.

The two layers have completely different exemption rules, which is where most of the confusion comes from — see the exemptions section below.

Official RA-to-paper mapping

Requirements below are for a Licensed Representative, compiled from the SFC Guidelines on Competence (October 2024), paragraphs 4.3.2.1 and 4.3.3.1:

Type	Regulated activity	Local Regulatory Framework	Recognised Industry Qualification
Type 1	Dealing in securities	Paper 1	Paper 7 + 8
Type 2	Dealing in futures contracts	Paper 1	Paper 7 + 9
Type 3	Leveraged foreign exchange trading	VTC LFET exam Paper 1	VTC LFET exam Paper 2
Type 4	Advising on securities	Paper 1	Paper 7 + 8
Type 5	Advising on futures contracts	Paper 1	Paper 7 + 9
Type 6	Advising on corporate finance	Paper 1	Paper 7 + 11
Type 7	Providing automated trading services	None	None
Type 8	Securities margin financing	Paper 1	Paper 7 + 8
Type 9	Asset management	Paper 1	Paper 7 + 12
Type 10	Providing credit rating services	Paper 1	Paper 7 + 10
Type 11*	Dealing in / advising on OTC derivatives	Paper 1	Paper 7 + 9
Type 12*	Client clearing for OTC derivatives	Paper 1	Paper 7 + 14
Type 13	Depositary services for relevant CIS	Paper 1	Paper 7 + 19

* Types 11 and 12 apply upon commencement of their new licensing regimes; Paper 14 launches alongside. Type 3 (leveraged foreign exchange trading) uses the Vocational Training Council's Leveraged Foreign Exchange Trader examinations rather than HKSI papers. Type 7 (providing automated trading services) has no LRP or RIQ requirement.

Additional requirements for Type 6 (corporate finance): staff doing sponsor work take Paper 15 (principals) or Paper 16 (representatives); those advising on Takeovers Code and share buy-back matters also take Paper 17.

Exemptions — the part most people get wrong

People often say "a CFA gets you out of Papers 7 and 8". That conflates two different mechanisms:

• Meeting the RIQ with another qualification (paragraph 4.3.2.2) — the SFC accepts the industry qualifications listed in Appendix C of the June 2011 Guidelines. Qualifications obtained elsewhere may also be accepted, but you must supply documents from the academic or professional body demonstrating equivalence to the HKSI or VTC papers. This is satisfying the requirement another way, not an exemption.
• An actual exemption (paragraph 4.4) — granted case by case at the SFC's discretion, on the criteria below.

Recognised Industry Qualification exemptions

• Full exemption: you have been a licensee within the past three years or are a current licensee, and the RA you now apply for has the same RIQ requirements in the same role (for example an LR licensed for Type 1 applying for Type 4); or you are applying for a temporary licence for Types 1, 2, 4, 5, 6, 10 or 11.
• Conditional exemption: in exceptional circumstances, a current licensee with five years of related local experience over the past eight years moving to an RA with different RIQ requirements but the same role (for example Type 1 to Type 2 or Type 9). The SFC will consider imposing licensing conditions restricting the scope of activities, and you must complete five additional CPT hours (either within the six months before applying, with confirmations, or within 12 months after approval, with undertakings).

Local Regulatory Framework Paper (Paper 1) exemptions

• Full exemption: (a) licensee within the past three years or a current licensee with the same LRP requirement in the same role; (b) applying for a temporary licence for Types 1, 2, 4, 5, 6, 10 or 11; or (c) actively involved in regulatory or compliance work in Hong Kong, full-time, for at least three years over the past six years, in the same RA. Under (c) the SFC may impose conditions restricting the scope of activities.
• Conditional exemptions are available to Responsible Officers only, requiring substantial experience (eight years in a jurisdiction where a specified exchange is domiciled, or six years with at least two licensed in Hong Kong), a restricted scope of activities, and a designated approved RO at the sponsoring firm supervising the individual.
• The other route: the SFC may approve a licence on condition that the applicant passes the LRP within six months of approval. Failing to do so can invalidate the approval and cause the licence to lapse unless an extension is granted. A grace period is usually given only once per LRP.

Exemptions are specific to the facts of the application and the individual's engagement with the sponsoring corporation, and are therefore non-transferable; a change of role or firm may require you to obtain the RIQ or pass the LRP after all. False or misleading information in confirmations can impugn fitness and properness. Always read the current SFC Guidelines on Competence.

Exam format, questions and time limits

• All papers are computer-based (CBE) multiple-choice, available in English and Traditional Chinese
• Pass mark: 70% per paper
• Papers 1 and 7: 60 questions / 90 minutes
• Paper 11: 40 questions / 90 minutes
• All other papers: 40 questions / 60 minutes
• Papers are enrolled for and passed independently — no need to sit them together

Full paper list: all 17 papers.

Exam fees

Where you sit	Papers 1 and 7	All other papers
Hong Kong examination centre	HK$1,620 – 1,800	HK$1,620 – 2,000
Global examination centre	HK$2,070 – 2,250	HK$2,070 – 2,450

Fees vary by enrolment window and membership status. Confirm with HKSI Institute.

Sitting frequency and how to enrol

• Most papers run monthly. Papers 4 and 10 run quarterly in Hong Kong and monthly at global centres; Paper 15 runs bi-monthly in Hong Kong and monthly at global centres.

1. Fix your RA combination using the table above, so you neither over-enrol nor miss a paper.
2. Open an examination account on the HKSI Institute website.
3. Enrol paper by paper, choosing a sitting and centre and paying the fee. Places are limited — book early.
4. Sit the exam at the designated centre.
5. Apply for the licence through your licensed corporation once you have passed the required papers.

Study strategy

• Take Paper 1 first — it is the common LRP for almost every RA and the regulatory grounding for the other papers
• Paper 7 appears in nearly every RIQ combination; the second paper is the specialist one (8 Securities / 9 Derivatives / 11 Corporate Finance / 12 Asset Management, and so on)
• Fix your RA combination before enrolling — each paper costs over HK$1,600, so sitting the wrong one is a real loss
• Regulatory papers reward precision on statutory wording; practical papers reward process and scenario judgement
• Papers 1 and 7 are 60 questions in 90 minutes — a different pacing problem from the 40-question / 60-minute papers, so practise both

Free study resources

• SFC HKSI LE licence overview
• All 17 papers (groupings, questions, time limits)
• SFC LE FAQ
• HKSI Institute official LE page (sittings, fees, study manuals)
• SFC Guidelines on Competence (the RA mapping and exemption text itself)