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HKSI Licensing Examination Paper 1 (Regulation) Exam Cram Sheet (2026)

The highest-yield points on the HKSI Licensing Examination Paper 1 (Regulation)exam, grouped by the exam's real content areas. Print it, review the ones you keep missing, then drill them with free practice questions.

60questions
90 mintime limit
70to pass
8content areas

Business Conduct and Client Relations

18% of the exam
Study →
  • The nine General Principles are the exam's backbone
  • Know your client (KYC): the diligence starts before the trade
  • Suitability: the obligation that dominates conduct questions
  • The written client agreement and the information given to clients
  • Conflicts of interest and dealing as principal (GP6)
  • How Paper 1 tests business conduct

The Securities and Futures Ordinance (SFO)

15% of the exam
Study →
  • One consolidating statute, organised in Parts
  • The licensing requirement (s.114)
  • The ten regulated activities (Schedule 5)
  • Market misconduct: parallel civil and criminal routes
  • Disclosure of inside information and of interests (Parts XIVA and XV)
  • How Paper 1 tests the SFO

Licensing, Registration and Subsidiary Legislation

15% of the exam
Study →
  • Who is licensed: corporations, representatives and responsible officers
  • The fit-and-proper test
  • Competence and Continuous Professional Training (CPT)
  • Managers-In-Charge (MIC) and senior-management accountability
  • Client assets: the Client Money and Client Securities Rules
  • Records, capital, temporary licences and how the topic is tested

Regulatory Overview of the Hong Kong Financial Industry

12% of the exam
Study →
  • The SFC: independent statutory regulator
  • The SFC's regulatory objectives
  • The division of labour: HKMA, IA, MPFA and the FSTB
  • HKEX: the market operator, not a regulator
  • Governance and funding: why independence matters
  • The SFC's operating divisions and how the topic is tested

Business Operations, Internal Controls and AML

12% of the exam
Study →
  • Internal controls and senior-management responsibility
  • The AMLO framework and the risk-based approach
  • Customer due diligence (CDD) under AMLO Schedule 2
  • Higher and lower risk: EDD, PEPs, reliance and record-keeping
  • Suspicious transactions, tipping off and terrorist financing
  • Personal data protection and how the topic is tested

Participating in the Exchanges and Accessing Public Capital

10% of the exam
Study →
  • Trading, clearing and settlement through CCASS
  • Accessing public capital: the listing regime
  • Main Board eligibility: financial tests and public float
  • IPO mechanics: sponsors, prospectus and dual filing
  • IPO allocation and stabilisation tools
  • Takeovers, mergers and share buy-backs

Market Misconduct and Improper Trading Practices

10% of the exam
Study →
  • The six forms of market misconduct
  • Insider dealing in detail
  • False trading, price rigging and manipulation
  • The Market Misconduct Tribunal (MMT)
  • Consequences: civil orders versus criminal penalties
  • How Paper 1 tests market misconduct

Principles of Hong Kong Law and the Companies Ordinance

8% of the exam
Study →
  • A common-law system preserved under the Basic Law
  • The essentials of a binding contract
  • Misrepresentation and its consequences
  • Agency: acting for a principal
  • Companies: separate legal personality and limited liability
  • Raising money from the public: the prospectus

Now prove you know them

Reading the outline is not the same as recalling it under exam pressure. Drill 404+ free HKSI Licensing Examination Paper 1 (Regulation) practice questions to find your weak areas, then sit a full timed mock — no signup, no paywall.

Study aid, not a substitute for the official material — always confirm the current rule with HKSI Institute — Licensing Examination. Last verified: August 2026.

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