LE Paper 1 in Apr 2007
The pass rate of LE Paper 1 held
on 28 April 2007 was 59%. 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 LE Paper 1 - Apr 2007
Figure 2. Topical correctness for LE Paper 1 - Apr 2007
Table 1 below
shows a comparison of the topical correctness rates of
each topic of LE Paper 1 in the first four months of
2007.
|
|
Topic |
|
Month |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
|
Jan-07 |
0.71 |
0.61 |
0.72 |
0.68 |
0.60 |
0.78 |
0.62 |
0.65 |
0.75 |
|
Feb-07 |
0.71 |
0.69 |
0.73 |
0.62 |
0.72 |
0.70 |
0.61 |
0.77 |
0.76 |
|
Mar-07 |
0.83 |
0.70 |
0.72 |
0.60 |
0.67 |
0.63 |
0.62 |
0.66 |
0.76 |
|
Apr-07 |
0.67 |
0.77 |
0.71 |
0.61 |
0.76 |
0.87 |
0.61 |
0.67 |
0.76 |
|
Average |
0.73 |
0.69 |
0.72 |
0.63 |
0.69 |
0.74 |
0.62 |
0.69 |
0.76 |
|
Table 1. Topical correctness rates for LE Paper 1:
Jan - Apr 2007 |
The correctness rates of most of the nine topics of
LE Paper 1 in the April examination remained stable in
comparison to those in the previous month. Notable
exceptions were the correctness rate of Topic 6
(Business Operations and Practices), which improved by
24 percent, and that of Topic 1 (Regulatory Overview of
the Hong Kong Financial Industry), which dropped by 16
percent after the considerable improvement in the
previous month.
Table 2 lists
one subject area in Topic 4 and two subject areas in
Topic 7 in which candidates performed unsatisfactorily,
and indicates the topics/sections in the Study Manual
which candidates should read when revising for these
subject areas.
|
Unsatisfactory subject areas |
Recommended topics/sections |
|
Topic |
Section |
|
1 |
Treatment of client securities and securities
collateral |
4 |
3 |
|
2 |
The
definition of derivatives |
7 |
2 |
|
3 |
Participants of the exchanges and clearing houses |
7 |
2 |
|
Table 2. Unsatisfactory subject areas for LE Paper
1- Apr 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) that a deposit, in the case of securities collateral,
may be registered in the intermediary's own name.
2) that derivatives are defined as contracts for the
purposes of making a profit or avoiding a loss, by
reference to the price of listed
securities or rights, options or interests in listed
securities.
3) the difference between exchange participants and
clearing participants.
LE Paper 2 in Apr 2007
The pass rate of LE Paper 2
held on 28 Apr 2007 was 52%. 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 LE Paper 2 - Apr 2007 Figure 4. Topical
correctness for LE Paper 2 - Apr 2007
Table 3
below shows a comparison of the topical correctness
rates of each topic of LE Paper 2 in the first four
months of 2007.
|
|
Topic |
|
Month |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
Jan-07 |
0.46 |
0.65 |
0.81 |
0.75 |
0.67 |
0.75 |
0.47 |
|
Feb-07 |
0.48 |
0.76 |
0.73 |
0.65 |
0.70 |
0.59 |
0.52 |
|
Mar-07 |
0.44 |
0.58 |
0.69 |
0.66 |
0.58 |
0.71 |
0.44 |
|
Apr-07 |
0.67 |
0.67 |
0.81 |
0.72 |
0.65 |
0.64 |
0.44 |
|
Average |
0.51 |
0.67 |
0.76 |
0.70 |
0.65 |
0.67 |
0.47 |
|
Table 3. Topical correctness rates for LE Paper 2:
Jan - Apr 2007 |
The general performance of candidates in the April
examination improved noticeably. In particular, the
correctness rates of the first five topics of LE Paper 2
all increased, in comparison to those in the March
examination. There was a decline in the performance of
Topic 6 (Options and OTC Derivatives), while Topic 7
(Market Misconduct and Offences) was still the weakest
topic to which candidates might have to pay serious
attention.
Table 4 lists one subject area in Topics 6 and two
subject areas in Topic 7 in which candidates performed
unsatisfactorily, and indicates the topics/sections in
the Study Manual which candidates should read when
revising for them.
|
Unsatisfactory subject areas |
Recommended topics/sections |
|
Topic |
Section |
|
1 |
Default
by clients |
6 |
4 |
|
2 |
Market
Misconduct Tribunal |
7 |
1 |
|
3 |
False
trading |
7 |
2 |
|
Table 4. Unsatisfactory subject areas for LE Paper 2
- Apr 2007 |
Candidates are recommended to revise carefully the
subject area 3, "False trading", in which candidates
have performed unsatisfactorily for four consecutive
months.
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) the action which can be taken by the option exchange
participant of the SEHK (SEOCH participant) without
prior notice to its client
in the event of its client's failure in making premium
payments.
2) that the findings of the MMT may be subject to
judicial review and appeal to the Court of Appeal.
3) that off-market transactions are not covered in the
provisions of false trading.
LE Paper 6 in Apr 2007
The pass rate of LE Paper 6
held on 14 Apr 2007 was 67%. 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 LE Paper 6
Apr 2007
Figure 6. Topical correctness for LE Paper 6 - Apr 2007
Table 5
below shows a comparison of the topical correctness
rates of each topic of LE Paper 6 in the first four
months of 2007.
|
|
Topic |
|
Month |
1 |
2 |
3 |
4 |
5 |
6 |
|
Jan-07 |
0.65 |
0.68 |
0.54 |
0.71 |
0.65 |
0.74 |
|
Feb-07 |
0.80 |
0.73 |
0.64 |
0.76 |
0.58 |
0.64 |
|
Mar-07 |
0.68 |
0.63 |
0.59 |
0.58 |
0.61 |
0.80 |
|
Apr-07 |
0.84 |
0.64 |
0.71 |
0.69 |
0.65 |
0.78 |
|
Average |
0.74 |
0.67 |
0.62 |
0.68 |
0.62 |
0.74 |
|
Table 5. Topical correctness rates for LE Paper 6:
Jan - Apr 2007 |
Candidates generally performed satisfactorily in the
April examination, with a sound improvement in the
topical correctness rates of Topic 1 (Overview of Legal
and Regulatory Structure), Topic 3 (Regulation of
Intermediaries: Licensing and Subsidiary Legislation)
and Topic 4 (Regulation of Intermediaries: Business
Conduct and Client Relations). Despite the obvious
improvement in the topics aforementioned, candidates may
have to pay particular attention to Topic 2 (Regulation
of Investment Products) and Topic 5 (Regulation of
Intermediaries: Business Operations and Practices), the
performance of which was relatively weak in comparison
to that of other topics.
Table 6 highlights one subject area in each of Topics
2 and 5 in which candidates performed poorly, and
indicates the topics/sections in the Study Manual which
candidates should read when revising for these subject
areas.
|
Unsatisfactory subject areas |
Recommended topics/sections |
|
Topic |
Section |
|
1 |
Suspension of dealing |
2 |
4 |
|
2 |
SFC
regime for representatives on non-Hong Kong-based
CIS |
5 |
12 |
|
Table 6. Unsatisfactory subject areas for LE Paper 6
- Apr 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) the factors which should be considered before
suspension of dealings in a CIS.
2) that a Hong Kong representative of a non-Hong
Kong-based CIS must be authorized to issue contract
notes in accordance with
the CIS terms.
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.
