LE Paper 1 in Jun 2007
The pass rate of LE Paper 1 held
on 30 June 2007 was 29%. 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 - Jun 2007
Figure 2. Topical correctness for LE Paper 1 -Jun 2007
Table 1 below
shows a comparison of the topical correctness rates of
each topic of LE Paper 1 in the first six 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 |
|
Jun-07 |
0.83 |
0.62 |
0.66 |
0.51 |
0.73 |
0.71 |
0.48 |
0.68 |
0.54 |
|
Average |
0.73 |
0.67 |
0.71 |
0.62 |
0.69 |
0.75 |
0.58 |
0.69 |
0.70 |
|
Table 1. Topical correctness rates for LE Paper 1:
Jan - Jun 2007 |
Candidates' performance in LE Paper 1 of this month
examination has continued to record declines in most of
the nine topics when compared with that in the May
examination. In particular, the correctness rate of
Topic 6 (Business Operations and Practices) dropped by
11% in comparison to that in the May examination.
Noticeable exception was the correctness rate of Topic 1
(Regulatory Overview of the Hong Kong Financial
Industry), which increased by 18% after dropping in the
May examination.
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 |
Exclusions from regulated activities |
4 |
1 |
|
2 |
Clearing
and Margin |
7 |
4 |
|
3 |
Settlement Services |
7 |
2 |
|
Table 2. Unsatisfactory subject areas for LE Paper 1
- Jun 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) that professional accountants, solicitors and counsel
conducting Types 4, 5, 6 and 9 activities that are
wholly incidental to
their professions do not need licensing in respect of
these activities.
2) that variation adjustment is the daily gain or loss
for the account and will be posted to the account each
day.
3) that safe custody securities must generally be
transferred out of the clearing account of a participant
to a designated account
within one day unless they are required for settlement
purposes.
LE Paper 2 in Jun 2007
The pass rate of LE Paper 2
held on 30 June 2007 was 62%. 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 - Jun
2007
Figure 4. Topical correctness for LE Paper 2 - Jun 2007
Table 3
below shows a comparison of the topical correctness
rates of each topic of LE Paper 2 in the first six
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 |
|
Jun-07 |
0.61 |
0.63 |
0.78 |
0.76 |
0.79 |
0.82 |
0.71 |
|
Average |
0.54 |
0.65 |
0.76 |
0.72 |
0.66 |
0.72 |
0.54 |
|
Table 3. Topical correctness rates for LE Paper 2:
Jan - Jun 2007 |
There was a remarkable improvement in the candidates'
performance in the LE Paper 2 of June examination almost
in all topics when compared with those in the
examination of the previous month. Apart from a very
slight drop of 2% in Topic 4 (Dealing in Securities
Traded on The Stock Exchange of Hong Kong (SEHK)), the
correctness rates of all of the other 6 topics
increased. The correctness rate of Topic 5 (Other
Securities Activities) in this month increased
substantially by 22% in comparison to that in May
examination.
Table 4 lists one subject area in Topic 1 and two
subject areas in Topic 2 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 |
Committees, tribunal and panels |
1 |
4 |
|
2 |
Requirement for registration or deposit of
securities |
2 |
2 |
|
3 |
Keeping
records |
2 |
5 |
|
Table 4. Unsatisfactory subject areas for LE Paper 2
- Jun 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know:
1) that the Securities and Futures Appeals Tribunal is
an independent statutory body of Securities and Futures
Committee
(SFC).
2) that an intermediary, when receiving any client
securities or securities collateral, must deposit the
securities or collateral
properly in a segregated account. This account must be
opened with an authorised financial institute (AFI); or
a custodian
approved by the SFC; or another licensed intermediary
of Type 1 regulated activity. The account must not be
opened with
a trust company.
3) that one of the objectives of the Securities and
Futures (Keeping of Records) Rules is to ensure that
sufficient records are
kept by advisers to demonstrate compliance with the
general principles under the Code of Conduct for persons
licensed by
or registered under the SFC.
LE Paper 6 in Jun 2007
The pass rate of LE Paper 6
held on 23 June 2007 was 76%. 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 Jun 2007
Figure 6. Topical correctness for LE Paper 6 - Jun 2007
Table 5
below shows a comparison of the topical correctness
rates of each topic of LE Paper 6 in the first six
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 |
|
