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Core papers · Last updated October 2026

HKSI LE Paper 1: Fundamentals of Securities and Futures Regulation: free practice test

The regulation paper almost every SFC licensed representative must pass. It covers the SFC and the Securities and Futures Ordinance, licensing, the Code of Conduct, market misconduct, disclosure of interests, client assets and anti-money laundering.

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About the Paper 1 exam

The regulation paper almost every SFC licensed representative must pass. It covers the SFC and the Securities and Futures Ordinance, licensing, the Code of Conduct, market misconduct, disclosure of interests, client assets and anti-money laundering.

What's on the exam

Paper 1
Hong Kong's Regulatory Framework
5 key facts
Licensing and Registration
5 key facts
Business Conduct and the Code of Conduct
5 key facts
Market Misconduct and Offences
5 key facts
Disclosure of Interests and Takeovers
5 key facts
Client Assets, Financial Resources and Investor Compensation
5 key facts
Anti-Money Laundering
5 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the Paper 1 exam

  • 60 questions in 90 minutes is 90 seconds each. Definitions and numbers are fast; save time for the scenario questions.
  • You need 70%, so 42 out of 60. Numbers are easy marks: 5% disclosure, 3 business days, 30% mandatory offer, HK$500,000 compensation.
  • Learn the 13 types of regulated activity by number. Many questions turn on whether an activity is Type 1, 4 or 9.
  • Paper 1 is usually taken with Paper 7 and one of Papers 8, 9 or 12.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the HKSI Key Numbers Sheet.

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What's in the premium Paper 1 prep

Premium Paper 1 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.

3,000practice questions, every answer explained
6full-length mock exams, 60 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 7 topics

Your step-by-step study path

  1. 1
    Hong Kong's Regulatory Framework9 key notes, 115 flashcards, then 450 practice questions in 18 sets of 25
    Notes free with an account
  2. 2
    Licensing and Registration9 key notes, 115 flashcards, then 425 practice questions in 17 sets of 25
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  3. 3
    Business Conduct and the Code of Conduct9 key notes, 115 flashcards, then 425 practice questions in 17 sets of 25
    Premium
  4. 4
    Market Misconduct and Offences9 key notes, 115 flashcards, then 425 practice questions in 17 sets of 25
    Premium
  5. 5
    Disclosure of Interests and Takeovers8 key notes, 115 flashcards, then 425 practice questions in 17 sets of 25
    Premium
  6. 6
    Client Assets, Financial Resources and Investor Compensation8 key notes, 115 flashcards, then 425 practice questions in 17 sets of 25
    Premium
  7. 7
    Anti-Money Laundering8 key notes, 110 flashcards, then 425 practice questions in 17 sets of 25
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  8. Final step: 6 full mock exams60 questions each, timed like test day. Pass them, then book your exam.
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Free with an account

Read the complete Paper 1 study notes for “Hong Kong's Regulatory Framework”

Our first full set of comprehensive notes, about 10 minutes of reading: The SFC and the SFO · The other key bodies · Licensed vs registered, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. Which body is Hong Kong's statutory regulator of the securities and futures markets?
Answer: The Securities and Futures Commission (SFC). The SFC is the independent statutory regulator under the Securities and Futures Ordinance (Cap. 571). HKEX operates the exchanges and clearing houses; the HKMA regulates banks.
2. The main piece of legislation governing Hong Kong's securities and futures markets is the:
Answer: Securities and Futures Ordinance (Cap. 571). The SFO consolidated the earlier securities and futures laws in 2003 and sets out the SFC's powers, licensing and market misconduct regimes.
3. Advising clients on which shares to buy, without dealing for them, is which type of regulated activity?
Answer: Type 4. Type 4 is advising on securities. Type 1 is dealing in securities, Type 6 advising on corporate finance and Type 9 asset management.
4. A licensed corporation must have at least how many responsible officers for each regulated activity, one of whom must be an executive director?
Answer: Two. At least two ROs must supervise each regulated activity, at least one available at all times, and at least one RO must be an executive director.
5. Licensed representatives must complete at least how many hours of continuous professional training (CPT) each calendar year?
Answer: 10. Under the SFC's Guidelines on Continuous Professional Training, licensed representatives need at least 10 CPT hours a year; responsible officers need more.
6. Under the SFC Code of Conduct, a licensed person must establish a client's financial situation, investment experience and objectives mainly to:
Answer: Ensure recommendations are suitable. Know your client information underpins the suitability obligation: recommendations and solicitations must be reasonably suitable for the client.
7. An individual is treated as a professional investor if they have a portfolio of at least:
Answer: HK$8 million. Under the Securities and Futures (Professional Investor) Rules, an individual with a portfolio of not less than HK$8 million (or equivalent) is a professional investor.
8. Trading on material non-public price-sensitive information about a listed company is:
Answer: Insider dealing. Insider dealing is one of the six types of market misconduct under the SFO and is also a criminal offence.
9. The maximum criminal penalty for market misconduct offences under the SFO is:
Answer: 10 years' imprisonment and a HK$10 million fine. Market misconduct offences under Part XIV carry up to 10 years' imprisonment and a fine of up to HK$10 million on conviction on indictment.
10. Buying and selling the same shares between accounts you control, to create a false appearance of active trading, is:
Answer: False trading. Wash trades and matched orders that create a false or misleading appearance of active trading are false trading under the SFO.
11. A person becomes a substantial shareholder of a Hong Kong listed company, with a duty to disclose, when their interest reaches:
Answer: 5% of the voting shares. Under Part XV of the SFO, the initial disclosure threshold is 5%. Changes that cross a whole percentage figure must also be disclosed.
12. A substantial shareholder's disclosure notice must generally be filed within:
Answer: 3 business days. Part XV notices are generally due within 3 business days after the relevant event.
13. Under the Takeovers Code, a mandatory general offer is normally triggered when a person acquires voting rights of:
Answer: 30% or more. Rule 26 requires a mandatory offer when a person (with concert parties) acquires 30% or more, or, holding 30% to 50%, acquires more than 2% in 12 months (the creeper).
14. If a licensed broker defaults, the Investor Compensation Fund can pay each investor up to:
Answer: HK$500,000. The ICF limit was raised to HK$500,000 per investor per default from 1 January 2020.
15. A licensed representative suspects a client's funds come from crime. The suspicion should be reported, through the firm, to:
Answer: The Joint Financial Intelligence Unit (JFIU). Suspicious transaction reports go to the JFIU, run by the Police and Customs. Tipping off the client is an offence.

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Certification guide

HKSI Paper 1 guide (2026): Paper 1, Fundamentals of Securities and Futures Regulation, is the regulation paper nearly every representative must pass. It's 60 multiple-choice questions in 90 minutes, and you need 70%.

Paper 1 exam FAQ

How many questions are on the Paper 1 exam?

60 multiple-choice questions, with a time limit of 90 minutes. Format: closed book, computer-based.

What is the passing score for Paper 1?

70%.

How much does the Paper 1 exam cost?

HK$1,800 in Hong Kong (HK$2,250 at overseas Prometric centres). Fees change, so confirm with the HKSI Institute before you enrol.

Which languages is the Paper 1 exam offered in?

English or Traditional Chinese.

Where do I take the Paper 1 exam?

HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong.

Is this Paper 1 practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full Paper 1 prep is Premium at HK$1,147 a month for this exam.

What's in the premium Paper 1 prep?

3,000 practice questions organized topic by topic (Hong Kong's Regulatory Framework: 450; Licensing and Registration: 425; Business Conduct and the Code of Conduct: 425; Market Misconduct and Offences: 425; Disclosure of Interests and Takeovers: 425; Client Assets, Financial Resources and Investor Compensation: 425; Anti-Money Laundering: 425), 6 full-length timed mock exams of 60 questions, 800 flashcards and 60 comprehensive key notes split across all 7 topics, plus a mistakes bank and the Readiness Score.

Compare Paper 1 with other HKSI papers

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HKSI LE Paper 7: Financial Markets

The markets paper taken with Paper 1 by most representatives.

15 free questions3,000 premium Qs · 6 mocks · 800 flashcards · 60 key notes
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Exam details are summarized from the official candidate information available in October 2026. HKSI Institute changes formats and fees, so confirm with Hong Kong Securities and Investment Institute (HKSI Institute) before you book. HKSIMock is not affiliated with the HKSI Institute or the SFC.

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