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Responsible Officer papers · Last updated October 2026

HKSI LE Paper 18: Regulation of Providing Depositary Services: free practice test

This paper is for individuals seeking approval as Responsible Officers of licensed corporations carrying on Type 13 regulated activity, providing depositary services for relevant collective investment schemes, alongside Papers 1, 7 and 19. It covers the general regulatory framework, the conduct and product rules specific to RA13 depositaries, and market misconduct.

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About the Paper 18 exam

This paper is for individuals seeking approval as Responsible Officers of licensed corporations carrying on Type 13 regulated activity, providing depositary services for relevant collective investment schemes, alongside Papers 1, 7 and 19. It covers the general regulatory framework, the conduct and product rules specific to RA13 depositaries, and market misconduct.

What's on the exam

Paper 18
General Regulatory Framework
6 key facts
RA13 Conduct Requirements
6 key facts
RA13 Product Regulations
6 key facts
Misconduct
6 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 18 exam

  • 40 questions in 60 minutes: about 90 seconds per question.
  • The pass mark is 70%, so you need 28 out of 40 and can only drop 12.
  • Know exactly what Type 13 covers (depositary services for relevant collective investment schemes) and which regulator does what; almost every topic starts from there.
  • Learn the rule acronyms (FRR, CMR, CSR, KRR, AAR) and the REIT numbers (45% borrowing cap, 90% distribution); they are quick marks.

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 18 prep

Premium Paper 18 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, 50 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 4 topics

Your step-by-step study path

  1. 1
    General Regulatory Framework15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25
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  2. 2
    RA13 Conduct Requirements15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25
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  3. 3
    RA13 Product Regulations15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25
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  4. 4
    Misconduct15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25
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  5. Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.
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Read the complete Paper 18 study notes for “General Regulatory Framework”

Our first full set of comprehensive notes, about 10 minutes of reading: Who regulates what · What Type 13 covers · Licensing, competence and CPT · The Code of Conduct: client assets and conflicts · Open-ended fund companies · Personal data and AML/CFT, 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. Under Schedule 5 to the Securities and Futures Ordinance, Type 13 regulated activity is:
Answer: Providing depositary services for relevant collective investment schemes. Type 13 is providing depositary services for relevant collective investment schemes. It was added to Schedule 5 of the SFO (Cap. 571) when the depositary regime was introduced, and a licence is required to carry it on.
2. A depositary's client asks which regulator supervises Hong Kong's Mandatory Provident Fund schemes. The correct answer is:
Answer: The Mandatory Provident Fund Schemes Authority. The MPFA regulates MPF schemes, trustees and service providers under the Mandatory Provident Fund Schemes Ordinance (Cap. 437). The HKMA regulates banks, the IA regulates insurers, and the SFC regulates securities and futures intermediaries.
3. Which of the following is a statutory objective of the SFC under section 4 of the SFO?
Answer: Minimizing crime and misconduct in the securities and futures markets. Section 4 of the SFO sets the SFC's objectives: fair, transparent and orderly markets, investor protection, minimizing crime and misconduct, and reducing systemic risk. The SFC does not guarantee returns or set interest rates.
4. An open-ended fund company (OFC) established in Hong Kong is:
Answer: A company with variable share capital formed under Part IVA of the SFO. An OFC is a fund in corporate form with legal personality and share capital that varies with subscriptions and redemptions. Part IVA of the SFO, the Securities and Futures (Open-ended Fund Companies) Rules and the Code on OFCs govern it, and it must have a licensed manager and a custodian.
5. A compliance officer at a depositary suspects that a client's subscription money is criminal proceeds. Under Hong Kong's AML regime, the firm must:
Answer: File a suspicious transaction report with the Joint Financial Intelligence Unit. Financial institutions under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) must file suspicious transaction reports with the Joint Financial Intelligence Unit. Tipping off the client about the report is itself an offence.
6. A depositary holds cash belonging to clients of the firm. Under the Client Money Rules, this money must be:
Answer: Kept in a segregated client account with an authorized institution. The Securities and Futures (Client Money) Rules require client money to be paid into segregated client accounts with authorized institutions, kept separate from the licensed corporation's own funds.
7. Under the Securities and Futures (Keeping Records) Rules, records of a licensed corporation's business must generally be kept for at least:
Answer: 7 years. The Keeping Records Rules require records of transactions and business to be kept for at least 7 years. Note the contrast: AML records under the AMLO are kept for 5 years after the end of the business relationship or transaction.
8. The SFC's licensing regime for Type 13 regulated activity (depositaries of SFC-authorised collective investment schemes) took effect on:
Answer: 2 October 2024. The Type 13 regime took effect on 2 October 2024. Since then, the top-level trustee or custodian of an SFC-authorised CIS must be licensed or registered for RA 13, unless the scheme is exempt (for example, registered MPF schemes).
9. Under the Management, Supervision and Internal Control Guidelines (ICG), primary responsibility for a licensed corporation's standards of conduct and compliance rests with:
Answer: Senior management. The ICG state that senior management bears primary responsibility for maintaining proper standards of conduct and compliance, supported by the compliance function and internal audit. The SFC supervises but does not run the firm.
10. A manager wants to offer units of a Hong Kong collective investment scheme to the retail public. The scheme must first be:
Answer: Authorized by the SFC under section 104 of the SFO. Part IV of the SFO restricts offers of investments in collective investment schemes to the public: the CIS must be authorized by the SFC under section 104, unless an exemption applies. Offering an unauthorized CIS to the public is an offence.
11. Under the Code on Real Estate Investment Trusts, a REIT's aggregate borrowing must not exceed:
Answer: 50% of its gross asset value. Since February 2022 the Code on REITs caps aggregate borrowing at 50% of a REIT's gross asset value (it was 45% before). REITs must also distribute at least 90% of their net income after tax each year.
12. Under the Code on Unit Trusts and Mutual Funds, an authorized fund must be managed by:
Answer: A management company licensed by the SFC for asset management. The UT Code requires the management company of an authorized fund to be licensed or registered with the SFC for asset management (Type 9), with a trustee or custodian safeguarding the scheme property.
13. Under Hong Kong's OTC derivative reporting regime, specified over-the-counter derivative transactions must be reported to:
Answer: The Hong Kong Trade Repository. The OTC derivative reporting rules made under the SFO require specified OTC derivative transactions to be reported to the Hong Kong Trade Repository, subject to exemptions for certain transactions and persons.
14. A director of a listed company learns of a confidential, price-sensitive pending acquisition and buys the company's shares before the announcement. This conduct is:
Answer: Insider dealing. Dealing while in possession of relevant inside information is insider dealing under section 291 of the SFO, one of the market misconduct offences. Front running is a Code of Conduct breach, not a statutory market misconduct offence.
15. The SFC believes a trader committed market misconduct but the case is not suited to criminal prosecution. The civil route is proceedings before:
Answer: The Market Misconduct Tribunal. The SFC may bring civil proceedings before the Market Misconduct Tribunal, or prosecute criminally for serious cases, but not both for the same conduct. The MMT can order disgorgement, cold shoulder orders, disqualification and costs.

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Paper 18 exam FAQ

How many questions are on the Paper 18 exam?

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

What is the passing score for Paper 18?

70%.

How much does the Paper 18 exam cost?

HK$2,000 in Hong Kong (HK$2,450 at overseas Prometric centres). Fees change, so confirm with the HKSI Institute before you enrol.

Which languages is the Paper 18 exam offered in?

English or Traditional Chinese.

Where do I take the Paper 18 exam?

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

Is this Paper 18 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 18 prep is Premium at HK$1,147 a month for this exam.

What's in the premium Paper 18 prep?

3,000 practice questions organized topic by topic (General Regulatory Framework: 750; RA13 Conduct Requirements: 750; RA13 Product Regulations: 750; Misconduct: 750), 6 full-length timed mock exams of 50 questions, 800 flashcards and 60 comprehensive key notes split across all 4 topics, plus a mistakes bank and the Readiness Score.

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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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