HKSI LE Paper 1 Guide: Format, Fees, Syllabus and Rules

The Licensing Examination for Securities and Futures Intermediaries (LE) is administered by the Hong Kong Securities and Investment Institute (HKSI Institute) and recognised by the Securities and Futures Commission (SFC). The examination suite is designed to fulfill the competence requirements for individuals seeking to be licensed as Representatives or Responsible Officers in Hong Kong. Among the various examination options, LE Paper 1 is titled Fundamentals of Securities and Futures Regulation and is classified as a Regulatory Paper.

LE Paper 1 Exam Format, Fees, and Comparison

LE Paper 1 is administered as a computer-based examination (CBE). The examination questions are presented in English and Traditional Chinese, while the examination system interface operates in English. Questions follow a multiple-choice format, where each item consists of a stem and a choice of four possible answers. The HKSI Institute notes that the LE is not an IQ test and that guesswork cannot be relied on to pass.

To achieve a pass grade in LE Paper 1, candidates must attain a pass mark of 70%. The paper consists of 60 multiple-choice questions with a total examination time of 90 minutes. LE Paper 1 is offered on a monthly basis.

Fees for the examination vary depending on whether the test is taken at the Hong Kong Examination Centre or a Global Examination Centre, as well as whether the paper is classified as regulatory or practical:

Specifically, Paper 9 covers Derivatives, Paper 11 covers Corporate Finance, and Paper 12 covers Asset Management. All three practical papers carry an examination fee of HKD1,620 in Hong Kong and HKD2,070 globally.

Licensing Context and SFC Competence Standards

The legal framework for Hong Kong's financial markets is set out under the Securities and Futures Ordinance (Cap. 571), commonly known as the SFO. The SFO establishes a single licensing regime covering 10 types of regulated activity. Conduct expectations for licensed professionals are set out in the SFC Code of Conduct (Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission).

According to the SFC Guidelines on Competence, candidates must fulfill specific paper combinations based on the Regulated Activity (RA) and role:

• Type 1 (Dealing in securities), Type 4 (Advising on securities), and Type 8 (Securities margin financing): Representatives require Paper 1 (as the local regulatory framework paper) plus Papers 7 and 8 (as recognised industry qualifications). Responsible Officers require Papers 1 and 2 plus Papers 7 and 8.
• Type 2 (Dealing in futures contracts) and Type 5 (Advising on futures contracts): Representatives require Paper 1 plus Papers 7 and 9. Responsible Officers require Papers 1 and 3 plus Papers 7 and 9.
• Type 6 (Advising on corporate finance): Representatives require Paper 1 plus Papers 7 and 11. Responsible Officers require Papers 1 and 5 plus Papers 7 and 11. Sponsor work additionally requires Paper 15 for Principals and Paper 16 for representatives. Matters subject to the Codes on Takeovers and Mergers and Share Buy-backs (unless exempted) require Paper 17.
• Type 9 (Asset management): Representatives require Paper 1 plus Papers 7 and 12. Responsible Officers require Papers 1 and 6 plus Papers 7 and 12.
• Type 10 (Providing credit rating services): Representatives require Paper 1 plus Papers 7 and 10. Responsible Officers require Papers 1 and 4 plus Papers 7 and 10.
• Type 13 (Providing depositary services for relevant collective investment schemes): Representatives require Paper 1 plus Papers 7 and 19. Responsible Officers require Papers 1 and 18 plus Papers 7 and 19.

For Type 3 (leveraged foreign exchange trading), the HKSI Institute does not offer examination papers. For Type 7 (providing automated trading services), there are no local regulatory framework paper or recognised industry qualification requirements. Exemptions from these requirements are set out in paragraph 4.4 of the SFC Guidelines on Competence, though the HKSI Institute advises candidates to consult full SFC guidelines.

Validity Windows, Academic Minimums, and Extra CPT

The SFC Guidelines on Competence and HKSI examination regulations specify timing and academic criteria for applicants:

• Three-Year Licence Application Window: Under SFC guidelines, individuals are expected to obtain the recognised industry qualification and pass the local regulatory framework paper not more than three years prior to the submission of the licence application.
• Three-Year HKSI Certificate Requirement: According to the HKSI LE Examination Handbook (1 June 2024), the preset combination of LE papers required for an HKSI Institute Certificate must be completed within three years, counted from the date of the first LE paper passed.
• Academic Prerequisites: As an academic qualification, the SFC Guidelines on Competence expect candidates to attain at least Level 2 in either English or Chinese and in Mathematics in the Hong Kong Diploma of Secondary Education (HKDSE) or equivalent. Other academic or professional qualifications may also be considered.
• Extra CPT Requirement: For certain applications for additional regulated activities, the SFC Guidelines on Competence describe an Extra CPT requirement of 5 CPT hours for each RA applied for. This is a one-off requirement to be taken within six months preceding the licence application submission.

LE Paper 1 Syllabus Structure

The current LE Paper 1 syllabus is version 3.5, which became effective on 30 June 2026. The syllabus contains nine distinct topics governing Hong Kong's regulatory framework:

• Topic 1: Regulatory overview of the Hong Kong financial industry
• Topic 2: Principles of relevant Hong Kong law and the Companies Ordinance
• Topic 3: Securities and Futures Ordinance (SFO)
• Topic 4: Licensing and registration, and subsidiary legislation
• Topic 5: Business conduct and client relations
• Topic 6: Business operations and practices
• Topic 7: Participating in the Hong Kong exchanges
• Topic 8: Accessing public capital
• Topic 9: Market misconduct and improper trading practices

Study Hours and Preparation Resources

The HKSI Institute describes the LE as a self-study examination. According to the HKSI Institute Guidelines for Examination Preparation, estimated preparation times are:

• Regulatory Papers (including Paper 1): Approximately 55-85 study hours.
• Practical Papers: Approximately 40-70 study hours.

These study estimates are provided for reference only, as actual preparation time varies based on personal work experience and academic background.

Official HKSI Preparation Tools

Candidates can access several official study materials directly from the HKSI Institute:

• eStudy Guide: A complimentary eStudy Guide is provided upon enrolment for each LE paper and remains accessible until the examination date. Without enrolling, eStudy Guides can be purchased online for HKD200 per copy by HKSI Institute Individual Members and staff of Corporate Members, or HKD400 per copy by non-members.
• Online Practice Questions: The HKSI Institute offers optional, fee-charging online practice questions for LE Paper 1. Enrolment provides unlimited practice attempts within 30 days. Each attempt comprises 60 questions to be completed within 90 minutes across all nine syllabus topics. The HKSI Institute explicitly notes that this tool is not a mock exam. The fee is HK$300 for members and corporate member staff, and HK$600 for non-members.
• Sample Practice Tests: The HKSI Institute provides free Sample Practice Tests for several LE papers, including a paper-based sample test for Paper 1.

Regarding external study materials, the HKSI Institute explicitly states that it has not authorised any third party to offer LE revision tools or study support resources.

Examination Rules, Logistics, and Results Reporting

According to the HKSI LE Examination Handbook (1 June 2024), specific administrative rules govern candidates' scheduling, test-day rules, and result reporting:

• Rescheduling and Fee Transferability: No rescheduling of examination sessions is allowed regardless of circumstances, and all fees paid are non-transferable.
• Withdrawal Policy: Withdrawal is permitted only for upcoming examinations. Candidates receive a refund of the examination fee minus an administration fee, provided the withdrawal application is submitted through the Online Portal on or before the withdrawal application deadline.
• Exam Day Check-in: Candidates must report to the assigned examination centre 30 minutes before the session starts. Candidates must present valid identification whose English name matches the HKSI Institute record. Failure to present proper identification or late arrival results in an ABSENT grade.
• Result Availability: Candidates view their grade (PASS, FAIL, or ABSENT) in the examination system immediately after completing the session. The official Notification of Results and Performance Analysis can be downloaded from the Online Portal approximately two hours after the examination.
• Results Rechecking: Candidates may request a results rechecking in writing within 21 working days from the examination date. An administration fee applies, which is refunded if the original result is found to be incorrect.

Examination Pass Rates and Enrolment Volume

According to the HKSI Institute Annual Report, in FY2023/24 the LE recorded 24,551 enrolments in Hong Kong with an average pass rate of 56%.

When reviewing these figures, candidates should note that the 24,551 enrolments and the 56% pass rate reflect LE-wide figures across all examination papers in Hong Kong, rather than a specific pass rate for LE Paper 1.