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Study guide

HKSI Licensing Examination Paper 1

The complete syllabus, taught chapter by chapter.

Questions
60
Time
90minutes
Mark
70%to pass
Edition
2026

Single-user licence. You may print this file and write on it. You may not redistribute, resell or post it. © Sitonce 2026.

Sitonce wordmark, cobalt

HKSI Licensing Examination Paper 1

Study guide, 2026 edition.

Published by
Sitonce. sitonce.com
Edition
2026. Regulations current at this edition
Licence
Single-user. You may print this file and write on it. You may not redistribute, resell or post it.
Not affiliated
Sitonce is not affiliated with, endorsed by or approved by the exam authority named on the cover. Marks belong to their owners.
Corrections
Report anything that looks wrong to [email protected] and it is fixed in the next edition.

Preface

How to use this guide

The complete syllabus for the HKSI Licensing Examination Paper 1. Read all 9 chapters and you have been taught every one of the 55 subtopics the examiner tests.

Read it against the paper's weights

The next chapter, The exam at a glance, is what makes the rest of this book useful. It says how many questions each topic carries, and the study plan on the page after converts those weights into hours. Two topics carry 25 of 60 marks between them; the lightest carries 2. Time spent should follow that, not the order the chapters happen to be printed in.

Practice questions

Once you have read a chapter, drill on it. 300 practice questions live on the Sitonce website (sitonce.com). They adapt to what you keep getting wrong, keep a notebook of your own mistakes, and explain each miss against the option you actually chose. That adaptation is where the website earns its place; a paper file cannot do it.

Then sit the mocks

When you have worked through the chapters and the practice questions, sit the five mock papers that ship alongside this book. Each carries its answer key at the back of the same file. Sit them the way you will sit the real one - a mock done in pieces over three evenings measures your notes, not your recall.

The exam at a glance

HKSI LE Paper 1

Everything about the exam itself: what it is, how it runs, what it costs, and how it is scored. Read this before you plan your revision.

AuthorityHong Kong Securities and Investment Institute (HKSI Institute)
Delivered byHKSI Institute (computer-based examination)
FormatMultiple choice, computer-based, closed book
LanguageEnglish and Traditional Chinese
Questions60
Time90 minutes
SittingsMonthly
FeeHKD 1,800 (retake HKD 1,800)
Results -
Validity -

The mark and what it means

70% is the published pass mark.

The blueprint

The paper is drawn to fixed weights per topic. This is the arithmetic behind the study plan on the next page:

Ch.TopicMarksShare
1Regulatory Overview of the Hong Kong Financial Industry23%
2Hong Kong Law and the Companies Ordinance23%
3The Securities and Futures Ordinance813%
4Licensing, Registration and Subsidiary Legislation1423%
5Business Conduct and Client Relations1118%
6Business Operations and Practices1017%
7Participating in the Hong Kong Exchanges610%
8Accessing Public Capital47%
9Market Misconduct and Improper Trading Practices35%
Total60100%

Study plan

Spend time in proportion to the marks

The commonest wrong strategy is to spend equal time on every chapter. The paper is not weighted equally; the plan should not be either. The share column below is what matters; the hours column applies a 40-hour reference total for scale.

Ch.ChapterWeightof 40 h
1Regulatory Overview of the Hong Kong Financial Industry3%1 h
2Hong Kong Law and the Companies Ordinance3%1 h
3The Securities and Futures Ordinance13%5 h
4Licensing, Registration and Subsidiary Legislation23%9 h
5Business Conduct and Client Relations18%7 h
6Business Operations and Practices17%7 h
7Participating in the Hong Kong Exchanges10%4 h
8Accessing Public Capital7%3 h
9Market Misconduct and Improper Trading Practices5%2 h
Total100%40 h

Whatever total time you decide on for this paper, allocate this share of it to each chapter. Pick the total from your own baseline: how many marks you dropped the first time you attempted a mock, and how many hours a week you can give it.

How to work through this book

  1. Read. Read every chapter once, in order. Do not attempt any questions yet. Skim rather than memorise on the first read; the second read will do that.
  2. Drill. Sit the practice questions on the Sitonce website (sitonce.com), area by area. Come back to this book for anything you got wrong and re-read the section it belongs to.
  3. Sit the mocks. One mock paper a week for the last five weeks, sat under timed conditions with the answer key put aside. Mark it against the key on the same day and diagnose what you missed against the section it came from.

Contents

  1. iPrefaceHow to use this guide
  2. iiThe exam at a glanceFormat, fee, mark, blueprint
  3. iiiStudy planWeight-hour allocation and a three-step approach
  4. 1 Regulatory Overview of the Hong Kong Financial IndustryFinancial products and services, and their regulation · Regulatory authorities · Securities and Futures Commission · Hong Kong Exchanges and Clearing Limited · Participants and intermediaries 2 of 60 marks
    7 sections
  5. 2 Hong Kong Law and the Companies OrdinanceOutline of Hong Kong's legal system · Companies Ordinance and related matters 2 of 60 marks
    7 sections
  6. 3 The Securities and Futures OrdinanceBackground and Part I Preliminary · Part II The SFC · Parts III and IIIA Exchanges, clearing houses and OTC derivatives · Parts IV and IVA Offers of investments and OFCs · Part V Licensing and registration · Part VI Capital, client assets, records and audit · Part VII Business conduct · Parts VIII to XI Supervision, discipline, intervention and appeals · Part XII Investor compensation · Parts XIII to XIVA Market misconduct and inside information · Parts XV to XVII Disclosure of interests and miscellaneous 8 of 60 marks
    10 sections
  7. 4 Licensing, Registration and Subsidiary LegislationLicensing and registration requirements · Capital requirements · Client securities · Client money · Keeping of records · Contract notes, statements of account and receipts · Audit · Regulated activities · OTC derivative reporting and clearing · Open-ended fund companies 14 of 60 marks
    12 sections
  8. 5 Business Conduct and Client RelationsCode of Conduct for Persons Licensed by or Registered with the SFC · Fund Manager Code of Conduct · Corporate Finance Adviser Code of Conduct · Code of Conduct for Persons Providing Credit Rating Services · Code on Open-Ended Fund Companies · Code of Conduct for Share Registrars 11 of 60 marks
    11 sections
  9. 6 Business Operations and PracticesManagement, Supervision and Internal Control Guidelines · Anti-money laundering and counter-terrorist financing · Electronic trading and alternative liquidity pools · Personal Data (Privacy) Ordinance · Compliance and governance · Other operational matters 10 of 60 marks
    11 sections
  10. 7 Participating in the Hong Kong ExchangesHKEX · Dealing in securities listed on SEHK · Traded options on the SEHK · Dealing in futures contracts · Trading and marketing 6 of 60 marks
    9 sections
  11. 8 Accessing Public CapitalRules governing listing · Other types of listed securities · Takeovers, mergers and share buy-backs · SFC authorised products · Alternative methods of accessing public capital 4 of 60 marks
    8 sections
  12. 9 Market Misconduct and Improper Trading PracticesMarket misconduct under the SFO · Consequences of market misconduct · Unsolicited calls · Improper trading practices · Enforcement actions 3 of 60 marks
    8 sections

Chapter 1

Regulatory Overview of the Hong Kong Financial Industry

2 of 60 marks 3% of the paper 7 sections

Who regulates what, and who answers to whom. The easiest marks on the paper, and the foundation for every topic after it.

Learning objectives

By the end of this chapter you will be able to explain:

  1. Financial products and services, and their regulation
  2. Regulatory authorities
  3. Securities and Futures Commission
  4. Hong Kong Exchanges and Clearing Limited
  5. Participants and intermediaries

In this chapter

  1. 1.1Four regulators, four perimeters
  2. 1.2The bank that is also a broker
  3. 1.3The SFC - an independent statutory body
  4. 1.4The six regulatory objectives
  5. 1.5HKEX - one listed company, many markets
  6. 1.6The bodies around the Commission
  7. 1.7Who may carry on a regulated activity

1.1Four regulators, four perimeters

  • Hong Kong regulates by product and activity, not by firm. One institution can sit under two or three regulators at once, and items test which perimeter an activity falls into.
  • SFC - securities, futures, leveraged foreign exchange, asset management, corporate finance advice, and the conduct of licensed intermediaries.
  • HKMA - banking. Monetary stability, the Linked Exchange Rate, and the prudential supervision of authorized institutions.
  • Insurance Authority - insurers and insurance intermediaries.
  • MPFA - the Mandatory Provident Fund system and registered schemes.
  • Product authorization - only the SFC may authorize a collective investment scheme, or a document inviting the public to acquire an interest in one.
  • Above the four sits the Financial Services and the Treasury Bureau - policy, not regulation. Beside them the Financial Reporting Council, regulator of auditors of listed entities. Reason from the activity, never the firm's name.

The rest of this study guide comes with the course

HKSI LE Paper 1: the whole syllabus taught, the questions that test it, 5 timed mocks, and all 6 PDFs to print.