Paper 6 Exam Study Guide (2026)
Everything the HKSI LE Paper 6: Regulation of Asset Management tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 40 multiple-choice questions |
|---|---|
| Time | 60 minutes |
| Passing score | 70% |
| Format | Closed book, computer-based |
| Certifying body | Hong Kong Securities and Investment Institute (HKSI Institute) |
| Test provider | HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong |
Mind map: the whole exam on one screen
Read the complete Paper 6 study notes for “General Regulatory Framework”
Our first full set of comprehensive notes, about 10 minutes of reading: The framework of laws and regulations · Regulated activities and licensing · The regulators and how they work together · Code of Conduct and the ICG · Personal data and AML/CFT · Discipline, governance and supervision, 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.
1. General Regulatory Framework
The SFO, the regulators and the conduct rules that govern Hong Kong asset managers.
Key facts
- The SFO (Cap. 571) is the principal law; SFC codes and guidelines sit beneath it and are enforced through the fit and proper and disciplinary regimes.
- Type 9 (asset management) means managing a portfolio of securities or futures contracts for another person for reward.
- Type 13 covers depositaries (trustees or custodians) of SFC-authorised collective investment schemes.
- A Type 9 responsible officer passes this paper plus Papers 1, 7 and 12.
- The Code of Conduct sets general principles including know your client, suitability and conflicts of interest.
- The ICG make senior management primarily responsible for compliance and internal control.
Flashcards
Exam tip: For regulator questions, ask who is front-line: SFC for securities firms, HKMA for banks, IA for insurers, MPFA for MPF trustees.
2. Back-office Compliance
Ongoing obligations: notifications, capital, client assets, records and OTCD reporting.
Key facts
- Licensed corporations must notify the SFC of material changes, such as new responsible officers or changes of business premises.
- Under the FRR, a Type 9 firm that holds client assets needs HK$5 million paid-up capital and HK$3 million liquid capital; one that does not hold client assets needs liquid capital of HK$100,000.
- Client money must go into segregated trust accounts with banks in Hong Kong; client securities must be deposited with specified custodians or brokers.
- Records, including client identity and transaction records, must generally be kept for at least 7 years.
- Contract notes must be issued within 2 business days of a transaction.
- Specified OTC derivative transactions must be reported to the Hong Kong Trade Repository operated by the HKMA.
Flashcards
Exam tip: Client money questions turn on segregation: if an option lets the firm mix client money with its own, it is wrong.
3. Asset Management Regulations
The SFC's product codes: FMCC, UT Code, OFC Code, REITs, MPF products and cross-border recognition.
Key facts
- The FMCC requires a compliance function, segregation of duties, fair allocation of investments and strict conditions on cross trades between client accounts.
- The UT Code generally limits a fund's holding of securities issued by a single entity to 10% of its net asset value.
- REITs must be authorised by the SFC, listed on the SEHK, distribute at least 90% of net income and keep borrowing within 50% of gross asset value.
- OFCs are governed by Part IVA of the SFO and the OFC Rules, with a licensed manager and a custodian.
- SFC circulars require liquidity risk management (stress testing, swing pricing) and integration of climate-related risks.
- The MRF recognises Mainland funds for sale in Hong Kong; the Recognised Jurisdiction Scheme covers funds from approved overseas jurisdictions.
Flashcards
Exam tip: Match the number to the code: 90% and 50% belong to REITs; 10% is the UT Code's single-issuer limit.
Test yourself on these topics
Take the free 15-question Paper 6 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Misconduct
Market misconduct offences, the MMT, criminal prosecution and improper trading practices.
Key facts
- The SFO creates six market misconduct offences, including insider dealing, false trading and price rigging, as both civil (Part XIII) and criminal (Part XIV) wrongdoing.
- Civil cases go to the Market Misconduct Tribunal; criminal insider dealing carries up to 10 years' imprisonment and a fine of up to HK$10 million.
Flashcards
Exam tip: Read insider dealing scenarios for the elements: specific information, not generally known, likely to move the price materially, and held by or received from a connected person.
How to pass
- 40 questions in 60 minutes: 90 seconds each.
- Pass mark is 70%: 28 correct out of 40, so you can only miss 12.
- Know which regulator does what: SFC, HKMA, MPFA and IA overlap constantly in this paper.
- Learn the key numbers: 90% REIT distributions, 50% REIT borrowing cap, 10% single-issuer limit in the UT Code, 7-year records, HK$500,000 ICF cap.
Frequently asked questions
How long should I study for the Paper 6 exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the Paper 6 exam online?
Yes. Paper 6 can be taken at the HKSI Institute's computer-based test centre in Hong Kong or, for candidates outside Hong Kong, at a Prometric centre (higher fee). Format: closed book, computer-based. Check the HKSI Institute's current candidate information for the rules.
What score do I need to pass the Paper 6 exam?
70%. The exam has 40 multiple-choice questions and a time limit of 60 minutes.
What are the most tested topics?
The outline covers general regulatory framework, back-office compliance, asset management regulations, misconduct. Use the free practice test to see which ones you need most.
The premium Paper 6 study path
Premium Paper 6 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.
Your step-by-step study path
- 1General Regulatory Framework15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25Notes free with an account
- 2Back-office Compliance15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25Premium
- 3Asset Management Regulations15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25Premium
- 4Misconduct15 key notes, 200 flashcards, then 750 practice questions in 30 sets of 25Premium
- Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.Premium
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Summarized from the HKSI Institute's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Hong Kong Securities and Investment Institute (HKSI Institute).