Securities SpecialistSPECIALIST
Securities and Futures Institute (SFI) · 2 subjects, 100 questions · 50 in each subject
Who needs it
Anyone soliciting business, opening accounts, taking orders or explaining investments at a securities firm. It is the entry licence for the industry and the one most people sit first; the employing firm registers you after you pass.
Format
- 2 subjects, 100 questions, all four-option multiple choice
- 50 in each subject
- Subjects: Securities trading regulations and practice · Securities investment and financial analysis
Registration windows, sitting dates and fees follow SFI announcements.
What to watch for
The Specialist and SITE tests share two subjects, so sitting SITE afterwards adds only the SITE regulations paper.
Securities trading regulations and practice
- Scope of the Securities and Exchange Act and its defined terms
- Public offering, issuance and private placement (Arts. 7, 8, 43-6)
- Effective-registration versus approval routes
- Prospectus contents and liability for misstatement or omission
- Underwriting: firm commitment and best efforts, book building, competitive auction
- Private placement — eligible investors and resale restrictions
- Tender offers, filing duties and mandatory tender offers
- Market manipulation (Art. 155) and insider dealing
- Margin trading and short selling: eligibility and account limits
- Minimum capital, operating bonds and financial conduct rules
- Securities transaction tax (3‰ on shares)
- Prohibited conduct and self-regulatory rules
Securities investment and financial analysis
- Expected return, variance and standard deviation
- Diversification and portfolio risk
- Performance measures: Sharpe, Treynor, Jensen's alpha
- Option payoff diagrams, intrinsic and time value
- Futures pricing and hedging
- Current and quick ratios
- Break-even in units and in dollars, and target profit
- Indirect-method cash flow adjustments
- Technical indicators: KD, MACD, RSI, moving averages
- Characteristics of shares, bonds, funds and derivatives
How to study it
- For the law subjects, build the structure of the statute first, then memorise the elements and the numbers (capital, deadlines, ratios).
- For the calculation subjects, drill by question type — ten questions on one formula beats fifty scattered ones.
- Use mock tests to check pacing, and confirm every subject clears the bar rather than the total.
- Keep an error log: the provision for law questions, the step you stalled on for calculations.
Free practice questions
4 questions, exactly the free preview this test shows in the app. Tap an answer to check yourself. More free questions →
Under the applicable rules, the dedicated compliance officer for anti-money laundering and countering the financing of terrorism at a securities and futures enterprise must periodically report to the board of directors and the supervisors (or the audit committee). What is the statutory minimum reporting frequency?
Why: Under the rules governing the internal control and audit of anti-money laundering and countering the financing of terrorism at securities and futures enterprises, the dedicated compliance officer must, in the ordinary course, report to the board of directors and the supervisors (or the audit committee) at least once every six months; if a material violation of law is discovered, the officer must report to the board of directors and the supervisors immediately (without waiting for the periodic cycle). The minimum periodic frequency is therefore once every six months.
Regarding the allocation of responsibility for the internal control system for anti-money laundering and countering the financing of terrorism at a securities and futures enterprise, which of the following statements is correct?
Why: Under the rules, the internal control system for anti-money laundering and countering the financing of terrorism must be approved by the board of directors, and the board of directors bears ultimate responsibility for ensuring that an appropriate and effective anti-money laundering and countering the financing of terrorism internal control system is established and maintained; the board of directors and senior management must also understand the relevant risks and foster an organizational culture that takes anti-money laundering seriously. The dedicated compliance officer, the chief internal auditor, and the general manager each have their own division of duties, but ultimate responsibility remains with the board of directors.
A product has a selling price of 100 dollars per unit and a variable cost per unit of 60 dollars. What is the unit contribution margin of this product?
Why: Unit contribution margin = selling price − variable cost per unit = 100 − 60 = 40 dollars. 60 dollars is the variable cost per unit itself; 160 dollars is selling price plus variable cost (erroneous addition); 100 dollars is the selling price.
A product has a selling price of 200 dollars per unit and a variable cost per unit of 120 dollars. What is the contribution margin ratio of this product?
Why: Contribution margin ratio = unit contribution margin ÷ selling price = (200 − 120) ÷ 200 = 80 ÷ 200 = 40%. 60% is the variable cost ratio (120÷200); 80% treats the unit contribution margin (80) as a percentage by mistake; 33.3% is the erroneous calculation of (200−120)÷variable cost per unit.
Read next
- All four tests
- Compare the four tests
- Exam guide
- FAQ
- Suggested next: SITE Specialist →
Securities Specialist bank + mock tests
500 questions original bilingual questions for this test, with mock sittings. Law questions cite the provision; calculation questions carry the full working.
Independent study aid. Not affiliated with, endorsed by, or sponsored by the Securities and Futures Institute or the Financial Supervisory Commission. Subjects, question counts, pass marks and registration follow SFI announcements.
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