Which LE Papers Do You Need? Papers 1, 7, 8 & SFC RAs

Navigating SFC Competence Standards in Hong Kong

To perform regulated financial activities in Hong Kong, individuals must satisfy competence requirements established by the Securities and Futures Commission (SFC) as recognized under the Securities and Futures Ordinance (Cap. 571). The Licensing Examination for Securities and Futures Intermediaries (LE) is run by the Hong Kong Securities and Investment Institute (HKSI Institute) to meet the competence requirements for individuals seeking to be licensed as Representatives or Responsible Officers (ROs).

The SFC licensing framework distinguishes between two main examination components: Local Regulatory Framework Papers (LRPs) and Recognised Industry Qualifications (RIQs). Candidates must complete specified paper combinations based on their targeted regulated activity (RA) type and whether they are applying as a Representative or a Responsible Officer. According to HKSI Institute performance figures for FY2023/24, the LE recorded 24,551 enrolments in Hong Kong across all papers, with an average pass rate of 56%. This 56% figure represents an aggregate LE-wide statistic across all examination papers in Hong Kong, rather than a single paper's performance.

Regulatory Papers vs Recognised Industry Qualifications

The HKSI Institute structures LE modules into regulatory papers and practical papers:

• Local Regulatory Framework Papers (Regulatory Papers): LE Paper 1 (titled Fundamentals of Securities and Futures Regulation) is classed as a regulatory paper and serves as the primary local regulatory framework paper for Representatives across regulated activities. LE Paper 1 contains 60 multiple-choice questions, lasts 90 minutes, and costs HKD1,800 at the Hong Kong Examination Centre or HKD2,250 at Global Examination Centres. LE Paper 1 is offered monthly. Other regulatory papers—specifically Papers 2, 3, 5, and 6—are regulatory papers tailored for Responsible Officers. These papers each cost HKD2,000 at the Hong Kong Examination Centre (HKD2,450 globally), contain 40 multiple-choice questions, and last 60 minutes.
• Recognised Industry Qualifications (Practical Papers): The HKSI Institute classifies Papers 7, 8, 9, 11, and 12 as practical papers. Paper 7 (Financial Markets) is a practical paper featuring 60 multiple-choice questions over a 90-minute examination duration, costing HKD1,620 at the Hong Kong Examination Centre and HKD2,070 at Global Examination Centres. Specialized practical papers include Paper 8 (Securities), Paper 9 (Derivatives), Paper 11 (Corporate Finance), and Paper 12 (Asset Management). Paper 8 consists of 40 multiple-choice questions, lasts 60 minutes, and carries an examination fee of HKD1,620 at the Hong Kong Examination Centre and HKD2,070 globally. Papers 9, 11, and 12 are practical papers that also cost HKD1,620 at the Hong Kong Examination Centre and HKD2,070 globally.

The pass mark is 70% for each LE paper. The LE is administered as a computer-based examination (CBE) using multiple-choice questions consisting of a stem and a choice of four possible answers. The examination question language is English and Traditional Chinese, while the examination system interface is English. The HKSI Institute states that the LE is not an IQ test and that guesswork cannot be relied on.

Required HKSI LE Papers by Regulated Activity (RA)

Under the Securities and Futures Ordinance, the single licensing regime covers 10 types of regulated activity. The table below outlines the paper combinations required for Representatives and Responsible Officers across key RA types:

Specialized Roles: Sponsors, Takeovers, Type 3, and Type 7

Certain specialized functions within Hong Kong financial markets involve additional examination paper requirements or operate under distinct rules:

• Sponsor Work (Type 6): For Type 6 (advising on corporate finance), sponsor work additionally requires Paper 15 for Principals and Paper 16 for representatives.
• Takeovers and Mergers: Matters subject to the Codes on Takeovers and Mergers and Share Buy-backs (unless exempted) require Paper 17.
• Type 3 (Leveraged Foreign Exchange Trading): The HKSI Institute does not offer examination papers for Type 3 (leveraged foreign exchange trading).
• Type 7 (Providing Automated Trading Services): There are no local regulatory framework paper or recognised industry qualification requirements for Type 7 (providing automated trading services).

Validity Periods, Exemptions, and Academic Criteria

Under the SFC Guidelines on Competence, 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. The HKSI Institute tells candidates to refer to the SFC guidelines for full licensing requirements. Additionally, according to the HKSI LE Examination Handbook (1 June 2024), the preset combination of LE papers for an HKSI Institute Certificate must be completed within three years, counted from the date of the first LE paper the candidate passes.

Exemptions from the Local Regulatory Framework Papers and Recognised Industry Qualifications requirements are covered in paragraph 4.4 of the SFC Guidelines on Competence. As an academic qualification, the SFC Guidelines on Competence expect an individual 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, though other academic or professional qualifications may also be considered. Furthermore, for certain applications for additional regulated activities, the SFC Guidelines on Competence describe an 'Extra CPT' requirement: five CPT hours for each RA applied for, a one-off requirement to be taken within six months preceding the submission of the application.

Exam Format, Preparation Estimates, and Scheduling Rules

The HKSI Institute describes the LE as a self-study examination. According to HKSI Institute guidelines for examination preparation, candidates are estimated to need about 55-85 study hours on each regulatory paper and about 40-70 study hours on each practical paper. These figures are provided for reference only and vary with work experience and academic background. All LE computer-based examinations (CBE) feature single-stem multiple-choice questions with four options, presented in English and Traditional Chinese with an English system interface.

Candidates preparing for LE Paper 1 study a syllabus covering nine topics (version 3.5, effective 30 June 2026): (1) Regulatory overview of the Hong Kong financial industry; (2) Principles of relevant Hong Kong law and the Companies Ordinance; (3) Securities and Futures Ordinance (SFO); (4) Licensing and registration, and subsidiary legislation; (5) Business conduct and client relations; (6) Business operations and practices; (7) Participating in the Hong Kong exchanges; (8) Accessing public capital; and (9) Market misconduct and improper trading practices.

Upon enrolment for each LE paper, a complimentary eStudy Guide is provided and remains accessible until the examination date. Without enrolling, eStudy Guides can be bought online for HKD200 per copy for HKSI Institute Individual Members and staff of Corporate Members, and HKD400 per copy for non-members. The HKSI Institute also offers optional, fee-charging online practice questions for LE Paper 1. Costing HK$300 for members and staff of corporate members and HK$600 for non-members, it grants unlimited attempts within 30 days after enrolment, with each attempt generating 60 questions covering all nine topics in the LE Paper 1 syllabus to complete within 90 minutes (noting that it is not a mock exam). The HKSI Institute also publishes free Sample Practice Tests for several LE papers including Paper 1 (paper-based). The HKSI Institute states that it has not authorised any third party to offer LE revision tools or study support resources.

Key administrative rules from the HKSI LE Examination Handbook (1 June 2024) include:

• Arrival: Candidates must report to the assigned examination centre 30 minutes before the examination starts and present valid identification whose English name matches the HKSI Institute record; otherwise, they receive an ABSENT grade.
• Results: Candidates can view their grade (PASS, FAIL or ABSENT) in the examination system immediately after the session and can download the Notification of Results and Performance Analysis from the Online Portal approximately two hours after the examination.
• Rechecking: Candidates may request a results rechecking in writing within 21 working days from the examination date, for an administration fee that is refunded if the original result is found incorrect.
• Rescheduling & Withdrawal: No rescheduling of examination sessions is allowed regardless of circumstances, and all fees paid are non-transferable. Withdrawal is only available for upcoming examinations, where only the examination fee less an administration fee is refundable, and the withdrawal must be made through the Online Portal on or before the withdrawal application deadline.