LE Paper 1 in May 2005
The pass rate of Paper 1 held on 28 May 2005 was 43%.
Figures 1 and 2 show the distribution by scores of the
exam results and the overall topical correctness¹
achieved in the examination.
Figure 1. Exam results distribution for
Paper 1 - May 2005
Figure 2. Topical correctness for Paper 1 - May 2005
As shown in Figure 2, candidates' performance in all
9 topics remains fairly consistent when compared to the
previous month. Topic 6 (Business Operations and
Practices) continues to be, on average, the topic with
the highest correctness rate in 2005, while Topic 7
(Securities, Options and Futures) remains the topic with
the lowest average correctness rate.
A more detailed analysis of the exam results shows
that candidates performed very well in a number of
subject areas:
• Philosophy of regulation in
the Hong Kong financial industry; and
• Management, Supervision and Internal Control
Guidelines.
Candidates performed unsatisfactorily in the
following subject areas:
• Features of different forms
of share capital;
• Exclusions from regulated activities;
• The Code of Conduct for Corporate Finance
Adviser; and
• Participants of the exchanges and clearing
houses.
Candidates are suggested to carefully review section
2 of Topic 2, section 1 of Topic 4, section 4 of Topic 5
and sections 2 and 4 of Topic 7.
LE Paper 2 in May 2005
The pass rate of LE Paper 2
held on 28 May 2005 was 50%. 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 - May
2005 Figure 4.
Topical correctness for Paper 2 - May 2005
As shown in Figure 4, candidates' performance in
Topic 2 (Relevant Statutory and Related Requirements)
saw a significant improvement this month however,
conversely, that of Topic 5 (Other Securities
Activities) saw a marked decline from 0.69 in Apr 2005
to 0.43 in May 2005. This is exactly a reverse situation
when compared to the performance of the Apr 2005 exam.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed very
well in a number of subject areas:
• Duties of responsible
officers; and
• Activities constitute Market Misconduct under
the SFO.
Candidates performed unsatisfactorily in the
following subject areas:
• Requirements relating to
stock borrowing and lending;
• Automated trading services; and
• Market Misconduct Tribunal.
Candidates are recommended to carefully revise sections
4 and 7 of Topic 5 and section 1 of Topic 7.
LE Paper 6 in May 2005
The pass rate of LE Paper 6
held on 21 May 2005 was 41%. 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 - May 2005 Figure 6. Topical
correctness for Paper 6 - May 2005
As shown in Figure 6, when compared to the
correctness rates of the previous month, candidates'
performance in all 6 topics remains very consistent.
Based on the correctness rates of the 4 most recent
examinations, candidates' performance in Topic 5
(Regulation of Intermediaries: Business Operations and
Practices) continues to show an upward trend.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed very
well in a number of subject areas:
• Regulated
activities included in asset management;
• Offering documents of MPF Products;
and
• Inside dealing defined under the SFO.
Candidates performed unsatisfactorily in the
following subject areas:
• Code on Pooled
Retirement Funds;
• SFC's special requirements for
asset management;
• Fundamental concepts of Fund
Manager Code of Conduct; and
• Government's initiatives for the
asset management industry.
Candidates are suggested to carefully read section 2
of Topic 2, section 3 of Topic 3, section 2 of Topic 4
and section 19 of Topic 6.
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.
