LE Paper 1 in Mar 2005
The pass rate of Paper 1 held on 19 Mar 2005 was 34%.
Figures 1 and 2 show the distribution by scores of the
exam results and the overall topical correctness
achieved in the examination.
Figure 1. Exam results distribution for Paper 1 -
Mar 2005 Figure
2. Topical correctness for Paper 1 - Mar 2005
¹
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.
As shown in Figure 2, candidates performed well in
Topic 1 (Regulatory Overview of the Hong Kong Financial
Industry) where the correctness rate has improved when
compared with the previous month. However, in all other
topics, except for Topic 4 (Licensing and Subsidiary
Legislation), there has been a decline in correctness
rates, particularly Topic 3 (Securities and Futures
Ordinance (SFO)), Topic 5 (Business Conduct and Client
Relations), Topic 6 (Business Operations and Practices),
Topic 7 (Securities, Options and Futures) and Topic 9
(Market Misconduct, Improper Trading Practices and
Compliance). Candidates are again advised, in
particular, to pay special attention to Topic 7 when
preparing for the examination.
Further analysis of the exam results shows that
candidates performed satisfactorily in a number of
subject areas:
• Objectives of
financial regulators in Hong Kong;
• Compliance functions under the
Management, Supervision and Internal Control Guidelines;
and
• Money laundering and terrorist
financing.
However, candidates performed unsatisfactorily in the
following subject areas:
• Additional
requirements specified in the Code of Conduct;
• General provisions of the Fund
Manager Code of Conduct;
• Participants of the exchanges and
clearing houses; and
• Market Misconduct Tribunal.
Candidates are recommended to revise sections 2 and 3
of Topic 5, sections 2 and 4 of Topic 7 and section 1 of
Topic 9 which cover these subject areas.
LE Paper 2 in Mar 2005
The pass rate of LE Paper 2
held on 19 Mar 2005 was 39%, almost identical to the
previous month. Figures 3 and 4 show the distribution by
scores of the exam results and the overall topical
correctness achieved in the examination.
Figure
3. Exam results distribution for Paper 2
-
Mar 2005
Figure 4. Topical correctness for Paper 2 - Mar 2005
When compared with the correctness rates of the
previous month, however, candidates' performance appears
more volatile, with a marked improvement in Topic 6
(Options and OTC Derivatives), but an equally marked
decline in Topic 5 (Other Securities Activities) and
Topic 7 (Market Misconduct and Offences). Candidates are
again advised to pay special attention to Topic 5 when
preparing for the examination.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed well
in a number of subject areas:
• General
requirements relating to the issuance of contract notes;
• Duties of responsible officers and
executive officers; and
• Risk management policies and
procedures of OTC business..
Candidates performed unsatisfactorily in the
following subject areas:
• Requirements
relating to stock borrowing and lending;
• Automated trading services; and
• False trading.
Candidates are recommended to carefully review sections
4 and 7 of Topic 5 and section 2 of Topic 7 which cover
these subject areas, in particular section 7 of Topic 5
which covers automated trading services.
LE Paper 6 in Mar 2005
The pass rate of LE Paper 6
held on 20 Mar 2005 was 56%. Figures 5 and 6 show the
distribution by scores of the exam results and the
overall topical correctness achieved in the examination.
Figure 5. Exam results distribution for
Paper 6 - Mar 2005
Figure 6. Topical correctness for Paper 6 - Mar 2005
When compared with the correctness rates of the
previous month, candidates' performance in Topic 3
(Regulation of Intermediaries: Licensing and Subsidiary
Legislation) has shown a marked improvement, while the
correctness rates of the other 5 topics remain fairly
consistent.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed well
in a number of subject areas:
• SFC's role on
regulating MPF products;
• Various forms of market misconduct;
and
• Good compliance practices in the
asset management industry.
Candidates performed unsatisfactorily in the
following subject areas:
• Rules and codes
issued by the SFC; and
• Issues relating to conflicts of
interest under the Code of Conduct.
Candidates should revise section 4 of Topic 1 and
section 3 of Topic 4 which cover these subject areas.
Past Examination Papers and Sample Questions
Booklets
The HKSI is aware of a number of advertisements in
the marketplace relating to past LE examination papers.
Candidates should take note that it is not the current
policy of the HKSI to publish past LE examination papers
and the HKSI cannot warrant for the authenticity of any
past LE examination papers which are publicly available.
In order to assist candidates preparing for their
examinations, the HKSI has published a series of Sample
Questions Booklets. These are currently available for
Papers 1, 2, 7 and 8 with booklets for Papers 6 and 9
also due to be released in May 2005.
Candidates should be aware that the purpose of these
Sample Questions Booklets is primarily to allow students
to familiarise themselves with the form and style of the
multiple choice questions which they are likely to
encounter in the actual examination papers and to
practice taking examination papers in this format. The
sample questions themselves, however, do not necessarily
reflect the level of difficulty or otherwise of the
actual examination questions. The Sample Questions
Booklets are not intended to constitute either past LE
examination papers or mock LE examination papers and
should not be construed by candidates as such.
