The pass rate for Paper 1 held on 26 June 2004 was
48.7%, which is the highest to date. Figure 1 shows the
distribution by scores of the exam results.
Figure 1. Exam results distribution for Paper 1 - June
2004
Highlights of the Month
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 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 0.0.
Figure 2. Topical correctness for Paper 1 - June 2004
Apart from Topic 7 (Securities, Options and Futures)
and Topic 9 (Market Misconduct, Improper Trading
Practices and Compliance), all others topics show some
improvement, particularly Topic 5 (Business Conduct and
Client Relations) and Topic 8 (Other SFC Regulated
Activities). The weak performance of candidates in
Topics 7 and 9 remains noticeable, particularly Topic 7
where the low level of correctness has not improved at
all over the May examination. Candidates are once again
advised to revise these two topics more thoroughly.
2. Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed very
well in a number of subject areas:
• General
principles of the Code of Conduct;
• Functions of Hong Kong financial
regulators; and
• Money laundering.
Candidates have shown substantial improvement in
answering questions relating to subsidiary legislation,
including the Securities and Futures (Keeping of
Records) Rules and the Securities and Futures (Accounts
and Audit) Rules.
However, candidates are still performing
unsatisfactorily in the subject areas relating to:
• Categories of
exchange participants in Hong Kong;
• Requirements of participants in the
Hong Kong exchanges;
• General financial resources
requirements; and
• Investor compensation.
Candidates may refer to the following sections in the
Study Manual for Paper 1 regarding the poorly performed
subject areas mentioned above:
• Section 2 of
Topic 4;
• Sections 2 and 4 of Topic 7;and
• Section 12 of Topic 9.
3. Admission Forms
The HKSI is aware that candidates continue to arrive
at their examination venues without their original
Admission Forms and/or correct proof of their identity.
Since the Admission Form and proof of identity are
essential documents to gain access to the examination
venue, the HKSI once again urges candidates to ensure
that they bring both their original Admission Forms
and the same proof of identity as is specified on
their Admission Forms to their examinations. Forms of
identification other than those printed on the Admission
Form (e.g. a passport in place of a Hong Kong Identity
Card or vice versa) are not acceptable for this
purpose.
If candidates have not received their Admission Forms
3 days prior to their examinations, they are advised to
contact the HKSI directly and, if appropriate, may
collect their Admission Forms at the HKSI office 1 day
before the examination.
Updates of the Study Manual
The HKSI posted the latest updates of the Study
Manual for Paper 1 on its website in May 2004. Updates
include amendments reflecting changes in laws and
regulations. Topic 2 (Principles of relevant Hong Kong
Law and the Companies Ordinance), in particular has been
updated due to recent amendments of the Companies
Ordinance.
Updates can be found at
http://www.hksi.org/eng/exam/le_manual_paper01.html.
Candidates are advised to visit the HKSI website
regularly to ensure that they have the latest version of
the Study Manual prior to taking their examinations.
