What exam should I take if I want to help customers buy and sell futures and options?

May 26, 2021

In Hong Kong, unless an individual or company is exempted, if they wish to conduct the ten “regulated activities” defined by the Securities and Futures Ordinance, they need to apply for a license/registration with the Securities and Futures Commission.

 

  • Type 1 Dealing in securities
  • Type 2 Dealing in futures contracts
  • Type 3 Leveraged foreign exchange trading
  • Type 4 Advising on securities
  • Type 5 Advising on futures contracts
  • Type 6 Advising on corporate finance
  • Type 7 Providing automated trading services
  • Type 8 Securities margin financing
  • Type 9 Asset management
  • Type 10 Providing credit rating services

Examples include collecting commissions to buy and sell securities for clients, which is a Type 1 regulated activity;the provision of trading advice on securities to customers for a fee is a type 4 regulated activity. So what does securities mean? Securities refers to a kind of valuable certificates that represent property rights, including stocks, bonds, and warrants (warrants) such as Hong Kong stocks and U.S. stocks. Therefore, charging customers for trading Hong Kong stocks, US stocks, and bonds on their behalf belong to Type 1 regulated activities and need to apply for a license/registration with the Securities and Futures Commission. One of the conditions for licensing/registration is to partake in and pass the Licensing Examination for Securities and Futures Intermediaries (HKSI LE).

What exam do you need to take?

This depends on your position in the company. If you have just entered the industry and have no experience in the securities industry, you should start with being a licensed representative. Licensed representatives of securities trading need to take HKSI LE Papers 1, 7, 8. For exemption information, please refer to https://2cexam.com.hk/a1015_eng/

 

Examination papers required to be partaken by licensed representatives

 

The HKSI LE exam has 14 different exam papers. Which ones do you need to take? In fact, it depends on what activities you want to engage in, in other words, what services or products you want to sell or provide. For example, if you want to trade securities products such as Hong Kong stocks, US stocks, bonds, etc. on behalf of your clients, you need to take HKSI LE papers 1, 7, and 8. Or if you want to work in an asset management company and deal with products related to funds or discretionary accounts, you may need papers 1, 7, and 12. You can first refer to the following chart to evaluate what combination of exam papers you need to take, and then refer to the exemption conditions to determine whether you need to take the entire combination of exam papers. 

 

Exam papers to be taken by Responsible Officers 

The examination papers of responsible officers are also based on the same principles as the examinations to be taken by the licensed representative. It depends on the type of activity you are engaged in, that is, the financial products/services that the company you will work for want you to regulate. For example, if you need to conduct Type 2 and 5 regulated activities, that is, to conduct dealing in future contracts or to advise on future contracts, you need to take HKSI Paper 1 and 3. If you have taken HKSI LE Paper 1 and applied for a license to become a licensed representative before becoming a responsible officer, you do not need to take the exam again. So just take the HKSI LE Paper 3. You can first refer to the following chart to estimate what combination of examination papers you need to take, and then refer to the exemption conditions to determine whether you need to take the entire combination of examination papers.

 

If more than one exam paper is required to be taken, which one should I partake first?

There is no requirement for the order of passing the exam in all the qualification exam papers. Candidates can apply for different exam papers according to their needs and decide the order of their own. For example, the exams of papers 2, 6, and 16 can still be retaken if a candidate fails in paper 1. Although there is no official restriction on the order of taking the exams, we recommend that students start with the paper 1 exam, because the paper 1 exam is the foundation, and many of the other papers are part of the content of the paper 1 exam, or an extension of a certain chapter of the paper 1 exam. Studying paper 1 allows the candidate to have a relatively macro and clearer mind map of various concepts, hence it is easier for the candidates to connect the different concepts.

 

How should I study for the exam?

 

The pass rate of HKSI LE has always been a big worry for many candidates,  Here we recommend a review method for everyone:

 

  1. First study the material study manual / 2CExam Youtube instructional video by each chapter 

 

English Videos

HKSI LE Paper 1 Free Class

https://www.youtube.com/playlist?list=PLilKLKW6-sshHzqqCUowV243F3sjymUr7

 

Chinese Videos

HKSI LE Paper 1 Free Class https://www.youtube.com/watch?v=Gj8tfrHGFOY&list=PLilKLKW6-ssjSl1PCuyTymFWQJwT_jmua

 

HKSI LE Paper 2 Free Class

http://goo.gl/m4A6mN

 

HKSI LE Paper 6 Free Class

http://goo.gl/Kx1fT3

 

HKSI LE Paper 7 Free Class

http://goo.gl/N3naMg

 

HKSI LE Paper 8 Free Class

http://goo.gl/H1fOvm

 

HKSI LE Paper 12 Free Class

https://youtube.com/playlist?list=PLilKLKW6-ssgFnTWO6wOad7aoZd6T3R0G

 

2. Finish the relevant topic in the Pass Paper Question Bank

 

This revision method takes 20-25 hours, and statistically has a pass rate of 80%.

No statistics are available for other review methods.

 

2CExam is a company that specializes in training candidates to take the securities, insurance and real estate exams. Regarding IIQE, 2CExam has produced free Cantonese video teaching Paper 1, 2, 3, which is publicly released on major well-known video sharing websites at no additional charge. If students have difficulty understanding the content of the study manual when taking the HKSI paper 1, 2, 3, they can choose to watch the other instructional videos. If you want to purchase review materials to better understand the content of the exam, you can visit www.2cexam.com (physical product) or www.hksiiiqepasspaper.online (online version)

 

How can we help?

2CExam provides HKSI LE, IIQE, EAQE and SQE related exam preparation materials. We sell mock question banks for IIQE Papers 1, 2, 3, 5 and MPFE in Chinese and English; and bibles for IIQE Papers 1, 2, 3, MPFE in Chinese. We also offer 1 on 1 tutorial services. Besides, we have also made free tutorial videos for IIQE Papers 1, 2, 3 and MPFE and posted on public channels such as Youtube/ Bilibili/ Tencent/ Iqiyi. 2CExam has been an exam training expert for years. Should you need any help please visit www.2cexam.com or contact us through:

Phone +852 2110 9644 Email: [email protected] Wechat: hk2cexam WhatsApp: +852 9347 2064

Please support us by leaving comments and likes if you think this article helps you!

You can scan or click on the QR codes to visit our social media.

Latest Article

Categories

過往文章

Contact US

Interesting Articles

The differences between a SFC Responsible Officer (RO), HKMA Executive Officer (EO) and a Sale Representative (Rep)

June 30, 2021

  The different regulatory agencies   Before explaining the differences between a responsible officer (RO), HKMA’s executive officer (EO) and sales representative (Rep), you must first know that there are two regulatory agencies that regulates companies that are engaging in securities business: the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA).The regulatory…

What kind of updates will be made in different versions of IIQE study notes?

June 30, 2021

  What updates will be made in the newest version of IIQE study notes has been a hot question from our clients. The answer may disappoint you or make you relieved. There are two kinds of major updates:   Changes in Laws, Regulations and Regulatory Body There will not be unreasonable or unnecessary modifications in…

What kind of updates did the HKSI make in the LE study manual?

June 30, 2021

Many of our clients are frustrated with needing to retake the exam, or some are going to take the exam right before the HKSI is going to update the manual. They are concerned with what updates the HKSI would make on their study manual. Below we will uncover what differences will be commonly found between…

How to apply for an insurance intermediary IA license in Hong Kong?

June 24, 2021

  Many students who have no experience in the insurance industry feel puzzled about the procedures regarding applying for a license. This article mainly teaches students how to prepare to apply for a insurance license.   First of all, to apply for an insurance license, you need to meet the requirements of the “Fit and…

How to apply for an SFC Hong Kong Securities License?

June 24, 2021

Many students who have no experience in the securities industry feel puzzled about the procedures regarding applying for a license. This article mainly teaches students how to prepare to apply for a securities license.   First, to apply for a securities license, you need to meet the ”Guidelines on Competence” issued by the securities and…

Which IIQE insurance exam paper is more difficult? Which is easier? I don’t have any insurance knowledge, where and how should I get started?

June 24, 2021

Which IIQE insurance exam paper is more difficult? Which is easier?   There are 4 most popular papers in the IIQE exam: IIQE Paper 1, 2, 3, 5. If you sort by difficulty, IIQE Paper 1 will be the most difficult because the concepts and content are broad and have the most content compared to…

Which of the HKSI LE securities exams is more difficult? Which is easier? I haven’t studied finance before, where and how should I get started?

June 24, 2021

What are the contents of the HKSI LE exam papers?    The Licensing Examination for Securities and Futures Intermediaries (HKSI LE) paper 1 is considered as the basic course for aspiring Securities and Futures Practitioners. Anyone who wishes to enter the industry – after the emergence of the securities examination system needs to take the…

Are the EAQE/SQE video courses on 2CExam’s Youtube channel still applicable to the exams today?

June 24, 2021

Are the EAQE/SQE video courses made by 2CExam a few years ago still applicable to the examinations today?   In recent years, 2CExam has launched a series of online video courses for the EAQE/SQE exam. The courses integrate the most important content in the entire examination and are covered by a seasoned tutor from scratch.…

Are the IIQE Paper 1 video courses on 2CExam’s Youtube channel still applicable to the exams today?

June 24, 2021

Are the IIQE Paper 1 courses uploaded by 2CExam a few years ago still applicable to the exam? In recent years, 2CExam has launched a series of online video courses for the IIQE Paper insurance exam. The courses integrate the most important content in the entire exam paper and are covered by seasoned instructor from…

Are the HKSI LE Paper 1 video courses on 2CExam’s Youtube channel still applicable to the exams today?

June 24, 2021

Are the HKSI LE Paper 1 video courses made by 2CExam a few years ago still applicable to the examinations today?   In recent years, 2CExam has launched a series of online video courses for the HKSI LE Papers. The courses integrate the most important content in the entire examination paper and are covered by…