The pass rate for Paper 1 held on 21 March 2004 was
33%, with the highest score by an individual candidate
being 96.7%. Following the examination and the release
of exam results to candidates, the HKSI has performed a
limited analysis of the examination results. Set out
below are some broad conclusions that may be drawn from
our most recent exam results analysis.
Examination Results
Figure 1 summarises the distribution of the exam
results. It again shows that a majority of candidates
only marginally failed the exam.
Figure 1. Exam results distribution for Paper 1 - March
2004
Highlights of the Month
Looking further at our analysis of the exam results,
we would like to point out two areas which may be of
interest to candidates.
1. Topical Correctness
Figure 2 shows the overall topical correctness
achieved in the examination, i.e. how well candidates
have performed in each topic. The March 2004 exam
results show improvements in Topics 1, 5 and 7; however,
the results also show a decline in the correctness of
Topics 6 and 9.
The score system of topical correctness provides a
performance score for each topic, ranging from 0 to 1.
When all questions relating to the same topic are answered
correctly by all candidates, the topical
correctness score will be 1. Conversely, if all questions
relating to the same topic are answered
incorrectly by all candidates, the topical correctness score
will be 0.
Figure 2. Topical correctness for Paper 1 - March 2004
As indicated above, candidates performed particularly
well in both Topic 1 (Regulatory Overview of the Hong
Kong Financial Industry) and Topic 5 (Business Conduct
and Client Relations). However, candidates are advised
to spend more time revising for questions relating to
Topic 9 (Market Misconduct, Improper Trading Practices
and Compliance) (see 2 below).
2. Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed well
in a number of subject areas:
• General
knowledge of financial markets;
• Money laundering; and
• Fundamental concepts of the Listing
Rules.
On the other hand, candidates performed poorly in
relation to important terms specifically defined in the
SFO, for example "associated entity", "registered
institution" and "intermediary". This appears to be a
continuing trend. Candidates need to focus carefully on
learning the meaning of these definitions which are to
be found throughout the Study Manual.
In addition, candidates performed badly in the
subject areas relating to:
• Asset management
and
• Investor compensation.
We would also advise candidates to focus on these two
subject areas when preparing for the examination which
are discussed in section 4 of Topic 8 and section 12 of
Topic 9 of the Study Manual for Paper 1.
Update
In addition to publishing the "Guidelines
for LE Preparation" on the HKSI's website to assist
candidates to better prepare for the LE, the HKSI has
now posted "Online
Workshop: How to Prepare for the LE", which can be
found under "Revision Tools for LE
"
on its website. This workshop provides additional
information for candidates to design their revision
strategies.
