HKSI Paper 1: what it covers, pass mark and how to prepare

HKSI Licensing Examination Paper 1, Fundamentals of Securities and Futures Regulation, tests the rules that govern Hong Kong's securities and futures industry: the regulators, the Securities and Futures Ordinance, licensing, codes of conduct, anti-money laundering and market misconduct. It has 60 multiple-choice questions in 90 minutes, and you need 70%, which works out at 42 correct answers. HKSI's published figures put the average pass rate from October 2025 to September 2026 at about 50%, the lowest of the three common papers.

Exam format

From the HKSI Licensing Examination page, checked in November 2026.

Item	Paper 1
Questions	60 multiple-choice
Time	90 minutes
Pass mark	70% (42 of 60, by arithmetic)
Mode	Computer-based, at the Hong Kong Examination Centre or a global examination centre
Language	Questions in English and Traditional Chinese; the system interface is in English
Hong Kong sessions	Monthly
Fee (2026)	HKD1,800 in Hong Kong; HKD2,250 at global centres
Calculator	HKSI's calculator policy covers Papers 7 to 12 only; Paper 1 is not on the list

Fees change. HKSI's June 2024 handbook listed Paper 1 at HKD1,475. For enrolment, rescheduling and refunds, see HKSI exam registration and fees.

What Paper 1 covers

The current syllabus, effective from 30 June 2026, has nine topics. In summary (the HKSI syllabus is the authority):

1. Regulatory overview: financial products, the regulators, the roles of the SFC and HKEX, and market participants.
2. Hong Kong law and the Companies Ordinance: the legal system, types of company, share capital, directors' duties, shareholder rights and winding up.
3. The Securities and Futures Ordinance: the Ordinance part by part, from the SFC's powers, licensing and conduct to investigations, discipline, investor compensation, the Market Misconduct Tribunal and disclosure of inside information and interests.
4. Licensing and subsidiary legislation: responsible officers, licensed representatives and relevant individuals; the fit and proper, competence and CPT guidelines; capital, client securities and money, records, contract notes and audit.
5. Business conduct: the SFC Code of Conduct and how it applies in practice, plus the other codes such as the Fund Manager Code of Conduct.
6. Business operations: internal control guidelines, anti-money laundering and counter-terrorist financing, electronic trading, personal data privacy and corporate governance.
7. The Hong Kong exchanges: securities and futures trading rules, stock options, position limits and the marketing of listed structured products.
8. Accessing public capital: listing rules, the Takeovers and Share Buy-backs Codes, SFC-authorised products and the regulation of virtual assets.
9. Market misconduct: tribunal proceedings versus criminal prosecution, consequences, unsolicited calls and enforcement.

Paper 1 is about knowing and applying rules. Most questions ask who is responsible for what, or when a requirement applies. There is very little calculation.

Is Paper 1 hard?

HKSI publishes monthly pass rates for its Hong Kong centre. From October 2025 to September 2026, Paper 1 averaged 49.98%. The best month was November 2025 at 61.84%; the worst was August 2026 at 44.24%; September 2026 was 45.09%. Paper 7 averaged 67.01% and Paper 8 65.38% over the same period. So roughly half of candidates do not pass at a sitting. The syllabus is wide and full of named rules and details.

Key point: Paper 1 has almost no maths, but a lot of detail. At 42 out of 60 you can afford only 18 wrong answers, so cover all nine topics rather than guessing which ones will come up.

Who needs Paper 1?

The SFC's Guidelines on Competence ask for a recognised industry qualification and a pass in a local regulatory framework paper. Paper 1 is that regulatory paper for representatives in Types 1, 2, 4, 5, 6, 8, 9, 10 and 13. A Type 1 (dealing in securities) representative typically needs Paper 1 plus Papers 7 and 8. Responsible officers need a further regulatory paper, such as Paper 2 for securities.

Bank staff are in the same position. Relevant individuals of a registered institution are entered on the HKMA register rather than licensed by the SFC, but they must meet the same competence requirements. A degree in accounting, business administration, economics, finance or law can remove the need for Papers 7 and 8, but not Paper 1.

Passes are expected to be no more than three years old when the licence application is made. See which HKSI papers you need and Paper 1 exemptions.

How to prepare

• Use the syllabus as a checklist. Each topic lists expected learning outcomes. Check you can explain and apply each one.
• Use the official study guide. Enrolling gives you a free eStudy Guide in English and Chinese, available until your exam date.
• Start with the heavy parts. The Ordinance, licensing rules, the Code of Conduct and anti-money laundering take up much of the syllabus.
• Practise under time. Ninety minutes for 60 questions is 1.5 minutes each. ExamDuck has bilingual practice questions and timed mocks so you can find weak topics and go back to them.
• Plan the weeks. For a schedule that fits around work, see how long to study for Papers 1 and 7.

Next, read about Paper 7 and Paper 8, or whether a securities licence is worth it.