LE Paper 1 in May 2007
The pass rate of LE Paper 1 held
on 26 May 2007 was 46%. 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 - May 2007
Figure 2. Topical correctness for LE Paper 1 -May 2007
Table 1 below
shows a comparison of the topical correctness rates of
each topic of LE Paper 1 in the first five 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 |
|
May-07 |
0.65 |
0.63 |
0.74 |
0.71 |
0.69 |
0.82 |
0.53 |
0.69 |
0.62 |
|
Average |
0.71 |
0.68 |
0.72 |
0.64 |
0.69 |
0.76 |
0.60 |
0.69 |
0.73 |
|
Table 1. Topical correctness rates for LE Paper 1:
Jan - May 2007 |
When compared with the previous month, candidates'
performance in this month has been generally less
consistent with noticeable declines in the correctness
rates in Topic 2 (Principles of relevant Hong Kong Law
and the Companies Ordinance) and Topic 9 (Market
Misconduct, Improper Trading Practices and Compliance),
which both dropped by 14% in comparison to those in
April examination.
Table 2 lists
two subject areas in Topic 7 and one subject area in
Topic 9 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 |
Exchange
Participantship on HKFE |
7 |
4 |
|
2 |
Trading
Rights of participants of the exchanges and clearing
houses |
7 |
2 |
|
3 |
Off-market transaction |
9 |
4 |
|
Table 2. Unsatisfactory subject areas for LE Paper 1
- May 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) that a Futures Commission Merchant is entitled to
trade in futures contracts and/ or options contracts on
its own account.
2) that participants are required to hold trading rights
and register with SEHK or HKFE depending on whether they
wish to deal in
securities or in futures contracts.
3) that an off-market transaction in shares listed on
SEHK is not required to be recorded or notified under
the rules of the SEHK.
LE Paper 2 in May 2007
The pass rate of LE Paper 2
held on 26 May 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 - May
2007
Figure 4. Topical correctness for LE Paper 2
- May 2007
Table 3
below shows a comparison of the topical correctness
rates of each topic of LE Paper 2 in the first five
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 |
|
May-07 |
0.60 |
0.62 |
0.73 |
0.78 |
0.57 |
0.78 |
0.63 |
|
Average |
0.53 |
0.66 |
0.76 |
0.71 |
0.63 |
0.69 |
0.50 |
|
Table 3. Topical correctness rates for LE Paper 2:
Jan - May 2007 |
The performance of candidates in the LE Paper 2 of
May examination improved noticeably in some topics when
compared with that in April examination. In particular,
the correctness rate of Topic 7 (Market Misconduct and
Offences) increased significantly by 19% after striking
the lowest rate among the other topics consecutively in
March and April. Meanwhile, there was also an increase
in the correctness rate of Topic 6 (Options and OTC
Derivatives) by 14% after a drop in the April
examination. Despite the improvement in the aforesaid
topics, there were declines in the performance of Topic
1 (Regulatory Framework), Topic 2 (Relevant Statutory
and Related Requirements), Topic 3 (Management and
Supervision of Securities Businesses) and Topic 5 (Other
Securities Activities) following the improvement of
these four topics in the April examination.
Table 4 lists one subject area in Topic 1 and two
subject areas in Topic 5 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 |
Hong
Kong Monetary Authority |
1 |
5 |
|
2 |
Securities Margin Financing |
5 |
2 |
|
3 |
Securities borrowing and lending regulations |
5 |
4 |
|
Table 4. Unsatisfactory subject areas for LE Paper
2- May 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) that the AFIs may apply to the SFC for registration
as 'registered institutions' to conduct one or more of
the regulated activities.
2) that the SEHK participants are not allowed to provide
funding to clients for them to meet margin requirements
for futures and
options trading under the SEHK rules.
3) that the Stock Borrowing and Lending Regulations
require the returns to be filed with Inland Revenue by
the borrower whenever
a transaction is completed.
LE Paper 6 in May 2007
The pass rate of LE Paper 6
held on 19 May 2007 was 75%. 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 May 2007
Figure 6. Topical correctness for LE Paper 6 - May 2007
Table 5
below shows a comparison of the topical correctness
rates of each topic of LE Paper 6 in the first five
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 |
|
May-07 |
0.74 |
0.79 |
0.67 |
0.78 |
0.67 |
0.94 |
|
Average |
0.74 |
0.69 |
0.63 |
0.70 |
0.63 |
0.78 |
|
Table 5. Topical correctness rates for LE Paper 6:
Jan - May 2007 |
There was improvement in candidates' performance for
most of the 6 topics of LE Paper 6 in comparison to that
in the previous month. The correctness rates of Topic 2
(Regulation of Investment Products) and Topic 6 (Market
Misconduct and Compliance Issues) recorded a substantial
increase. Following the increase in the correctness
rates of Topic 1 (Overview of Legal and Regulatory
Structure) and Topic 3 (Regulation of Intermediaries:
Licensing and Subsidiary Legislation) in April
examination, there was a decline in the correctness
rates of these two topics in May examination. Candidates
were recommended to pay more attention to these two
topics, which were relatively weak when compared to the
other topics.
Table 6 highlights two subject areas in Topic 3 and
one subject area in Topic 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 |
