LE Paper 1 in Aug 2007
The pass rate of LE Paper 1 held
on 25 August 2007 was 26.88%. Figures 1 and 2 show the
distribution by scores of the exam results and the
overall topical correctness¹ achieved in the examination
respectively.
Figure
1. Exam results distribution for LE Paper 1 - Aug 2007
Figure 2. Topical correctness for LE Paper 1 - Aug 2007
Table 1 below
shows a comparison of the topical correctness rates of
each topic of LE Paper 1 in the first eight 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 |
|
Jul-07 |
0.71 |
0.63 |
0.72 |
0.67 |
0.62 |
0.74 |
0.67 |
0.67 |
0.73 |
|
Aug-07 |
0.58 |
0.61 |
0.57 |
0.61 |
0.70 |
0.69 |
0.52 |
0.63 |
0.62 |
|
Average |
0.71 |
0.66 |
0.70 |
0.63 |
0.69 |
0.74 |
0.58 |
0.68 |
0.69 |
|
Table 1. Topical correctness rates for LE Paper 1:
Jan - Aug 2007 |
The performance of candidates in LE Paper 1
in August generally declined as compared to
the performance in July. The correctness rates
of eight topics (out of 9 topics) decreased.
In particular, four topics, namely Topic 1 (Regulatory
Overview of the Hong Kong Financial Industry),
Topic 3 (The Securities and Futures Ordinance),
Topic 7 (Securities, Options and Futures) and
Topic 9 (Market Misconduct, Improper Trading
Practices and Compliance), all recorded a decrease
in correctness rates of more than 10%, when
compared with those in the July examination.
Among them, Topic 7 (Securities, Options and
Futures) was the candidates' weakest area. The
only exception, however, was Topic 5 (Business
Conduct and Client Relations), the correctness
rate of which increased by about 8%.
Table 2
highlights one subject area in Topic 3 and two subject
areas in Topic 7 in which candidates performed
unsatisfactorily, and indicates the related sections in
the Study Manual to which candidates should pay more
attention when studying these subject areas.
|
Unsatisfactory subject areas |
Related topics/sections |
|
Topic |
Section |
|
1 |
Supervision and Investigation by the SFC |
3 |
9 |
|
2 |
Dealing
in futures contracts |
7 |
4 |
|
3 |
Participants of SEHK,HKFE and HKCC |
7 |
2 |
|
Table 2. Unsatisfactory subject areas for LE Paper 1
- Aug 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know that:
1) in performing its supervision functions,
the SFC may authorize its staff to inspect the premises
of a licensed corporation,
and ask for documents to be provided. However,
any seizure of documents from the licensed corporation's
premises would
require a magistrate warrant.
2) persons who make introductions between a
futures dealer (or his representative) and a third
person, in return for
remuneration, so that the third person may engage
in futures contracts dealing will be regarded as dealing
in futures
contracts, i.e., Type 2 regulated activity.
3) participants must ensure that they are licensed
by the SFC for Type 1 or Type 2 activities as necessary,
depending on
whether they are dealing in securities or in
futures contracts; that they are registered by the
relevant exchanges as exchange
participants if they wish to trade through them;
and as clearing participants if they wish to clear
trades as well.
LE Paper 2 in Aug 2007
The pass rate of LE Paper 2
held on 25 August 2007 was 37.40%. Figures 3 and 4 show
the distribution by scores of the exam results and the
overall topical correctness achieved in the examination
respectively.
Figure 3. Exam results distribution for LE Paper 2 - Aug
2007
Figure 4. Topical correctness for LE Paper 2 - Aug 2007
Table 3
below shows a comparison of the topical correctness
rates of each topic of LE Paper 2 in the first eight
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 |
|
Jul-07 |
0.47 |
0.65 |
0.76 |
0.67 |
0.63 |
0.73 |
0.59 |
|
Aug-07 |
0.68 |
0.66 |
0.66 |
0.65 |
0.59 |
0.53 |
0.59 |
|
Average |
0.55 |
0.65 |
0.75 |
0.71 |
0.65 |
0.69 |
0.55 |
|
Table 3. Topical correctness rates for LE Paper 2:
Jan - Aug 2007 |
In LE Paper 2 August examination, apart from the
correctness rates of the first two topics which recorded
an increase and the last topic which remained the same
as compared with that in the July examination, the
remaining four topics, i.e., Topic 3 (Management and
Supervision of Securities Businesses), Topic 4 (Dealing
in Securities Traded on the Stock Exchange of Hong
Kong), Topic 5 (Other Securities Activities) and Topic 6
(Options and OTC Derivatives) all dropped. Candidates
are recommended to pay more attention to Topic 6
(Options and OTC Derivatives), as there was a fall of
20% in the correctness rate for August.
Table 4 highlights one subject area in each of Topic
5, Topic 6 and Topic 7 in which candidates performed
unsatisfactorily, and indicates the related sections in
the Study Manual to which candidates should pay more
attention when studying these subject areas.
|
Unsatisfactory subject areas |
Related topics/sections |
Topic
|
Section |
|
1 |
Authorization of advertisements, invitations, or
documents relating to investment arrangements |
5 |
8 |
|
2 |
The
trading and clearing systems of Options |
6 |
1 |
|
3 |
Market
Misconduct Tribunal Sanctions |
7 |
1 |
|
Table 4. Unsatisfactory subject areas for LE Paper 2
- Aug 2007 |
Revision notes on unsatisfactory subject areas
Candidates are required to know that:
1) under the Securities and Futures Ordinance,
public advertisements and invitations to the public to
enter into agreements to
buy, sell or subscribe for or underwrite
securities must not be issued without the prior approval
of the Securities and Futures
Commission.
2) trading participants should input orders and
quotes for auto matching through the Hong Kong Futures
Automated Trading
System (HKATS) in respect of options traded on
the SEHK.
3) the Market Misconduct Tribunal may impose a
range of civil sanctions against a person who is found
to have engaged in
market misconduct,
including issuing a 'cold shoulder' order (i.e.,
a person is denied access to market facilities)
and
disqualification orders to disqualify a director
from being a director of any listed company, etc.
LE Paper 6 in Aug 2007
The pass rate of LE Paper 6
held on 18 August 2007 was 37.50%. Figures 5 and 6 show
the distribution by scores of the exam results and the
overall topical correctness achieved.
Figure 5. Exam
results distribution for LE Paper 6 Aug 2007
Figure 6. Topical correctness for LE Paper 6 - Aug 2007
Table 5
below shows a comparison of the topical correctness
rates of each topic of LE Paper 6 in the first eight
months of 2007.
