LE Paper 1 in Jun 2005
The pass rate of Paper 1 held on 25 Jun 2005 was 53%.
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 - Jun 2005
Figure 2. Topical correctness for Paper 1 - Jun 2005
As shown in Figure 2, the correctness rates for all
topics of Paper 1 remain consistent, with the exceptions
of Topic 4 (Licensing and Subsidiary Legislation) in
which candidates' performance has improved this month
and Topic 8 (Other SFC Regulated Activities) in which
candidates' performance has declined. Based on the exam
results statistics for the first half of 2005, Topic 6
(Business Operations and Practices) is the topic with
the highest correctness rate, achieving an average of
0.80, while Topic 7 (Securities, Options and Futures) is
the topic with the lowest correctness rate with an
average of 0.55.
A more detailed analysis of the exam results
indicates that candidates performed very well in a
number of subject areas:
• Objectives of
financial regulators in Hong Kong; and
• Control guidelines set out in the
ICG.
Candidates are performing unsatisfactorily in the
following subject areas:
• Features of
different forms of share capital;
• Terms specifically defined in the
SFO;
• Subsidiary legislation made under
the SFO;
• Application and effect of the ICG;
and
• Participants of the exchanges and
clearing houses.
Candidates are recommended to carefully review
section 2 of Topic 2, sections 2 and 7 of Topic 3,
section 2 of Topic 6 and section 2 of Topic 7 which
cover these 5 subject areas.
LE Paper 2 in Jun 2005
The pass rate of LE Paper 2
held on 25 Jun 2005 was 53%. 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 - Jun
2005 Figure 4.
Topical correctness for Paper 2 - Jun 2005
As shown in Figure 4, while candidates' performance
in 6 of the 7 topics remains fairly consistent this
month, Topic 5 (Other Securities Activities) saw a
marked improvement from 0.43 in May 2005 to 0.63 in Jun
2005. Despite this improvement, Topic 5 remains the most
volatile of the 7 topics in the examination with the
lowest correctness rate, on average, over the past 6
months.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed well
in a number of subject areas:
• Duties of
responsible officers; and
• Corporate governance.
Candidates are performing unsatisfactorily in the
following subject areas:
• Issuance of
contract notes, statements of accounts and receipts;
• Disciplinary procedures of the SEHK;
and
• Automated trading services.
Candidates are advised to carefully read section 4 of
Topic 2, section 7 of Topic 4 and section 7 of Topic 5
which cover these subject areas.
LE Paper 6 in Jun 2005
The pass rate of LE Paper 6
held on 18 Jun 2005 was 46%. 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 - Jun 2005 Figure 6. Topical
correctness for Paper 6 - Jun 2005
As shown in Figure 6, when compared to the
correctness rates of the previous month, candidates'
performance in Topic 5 (Regulation of Intermediaries:
Business Operations and Practices) saw a major decline
while the correctness rates of the other 5 topics remain
consistent. Topic 5 is the topic with the lowest
correctness rate, on average, over the past 6 months.
Well Performed and Poorly Performed Subjects
Our analysis indicates that candidates performed very
well in a number of subject areas:
• Authorisation of
advertisements for investment products; and
• Insider dealing defined under the
SFO.
Candidates are performing unsatisfactorily in the
following subject areas:
• The MPF system
in Hong Kong;
• Code of practice applicable to MPF
intermediaries;
• Management and supervision and risk
management issues under the ICG;
• Supervision of trustees; and
• Government's initiatives for the
asset management industry.
Candidates should carefully read section 5 of Topic
1, sections 5 and 6 of Topic 4, sections 3, 10 and 14 of
Topic 5 and section 19 of Topic 6 which cover these 5
subject areas.
Unauthorised Calculators
Recently, there have been a
number of cases in which candidates have used
unauthorised calculators in their examinations.
Candidates should take note that only non-programmable
electronic calculators which are battery-powered,
operated soundlessly and do not include printing,
graphics or word display functions are allowed in the
examinations. Calculators which possess LCD display
and/or other electronic devices that are able to store
text are strictly prohibited. In addition, electronic
devices such as Personal Digital Assistants (PDAs),
electronic diaries, electronic dictionaries, mobile
phones etc. with inbuilt calculators are not allowed to
be used in the examination centres. Use of unauthorised
calculators may result in disqualification from the
examinations. A list of approved models of calculators
is published on the HKSI website for candidates'
reference and is regularly updated.
The HKSI understands that new and updated models of
calculators are frequently introduced into the
marketplace. However, candidates should be aware that
new models of calculators may not be immediately
included in the HKSI's list of authorised calculators
and remain prohibited until such time as the list is
updated to include such models. Candidates who are
uncertain as to whether their calculators are acceptable
or not are urged to contact the HKSI direct for approval
prior to their examinations.
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.
