HKSI Paper 7 and 8 Exemption: The Degree Rule
Updated · 5 min read
Many new joiners enrol for Papers 1, 7 and 8 together because a colleague did. You may not need Papers 7 and 8 at all. For a licensed representative, the SFC treats a relevant degree or a recognised professional qualification as meeting the industry-knowledge requirement, leaving Paper 1 as the only exam. Getting this right can save you two papers, their fees and several weeks of study.
Candidates call this the “Paper 7 and 8 exemption”. Strictly, the SFC does not exempt you from a paper: your degree or qualification meets the same requirement Papers 7 and 8 meet, so you do not need them. HKSI's own certificates are different and grant no exemptions.
The two parts of the competence test
The SFC’s Guidelines on Competence (October 2024) expect a representative to show two things on top of basic education (paragraphs 4.1.3 and 4.1.4):
- A recognised industry qualification (RIQ): knowledge of the products you deal in. For Types 1, 4 and 8 this is HKSI LE Papers 7 and 8 (para 4.3.2.1).
- A local regulatory framework paper (LRP): knowledge of Hong Kong law and regulation. For representatives in every activity except Types 3 and 7 this is LE Paper 1 (para 4.3.3.1).
Paper 1 is always needed. The question is only whether you need the RIQ, which is Papers 7 and 8.
The three routes for a licensed representative
Paragraph 4.3.1.2 of the Guidelines sets out three options:
| Route | Your qualification | Industry experience | RIQ (Papers 7 and 8) or Extra CPT | Paper 1 |
|---|---|---|---|---|
| A | Degree in a designated field; any degree with passes in at least two courses in designated fields; or a recognised professional qualification | Not required | Not required | Pass |
| B | Other degree | At least 2 years over the past 5 | Not required | Pass |
| B | Other degree | Less than that | RIQ or Extra CPT | Pass |
| C | HKDSE Level 2 in English or Chinese and in Maths, or equivalent | At least 2 years over the past 5 | Extra CPT | Pass |
| C | HKDSE Level 2 in English or Chinese and in Maths, or equivalent | Less than that | RIQ | Pass |
The Guidelines define the designated fields as accounting, business administration, economics, finance and law. Professional qualifications means internationally recognised qualifications in law, accounting or finance; the SFC names CFA, CIIA and CFP as examples in finance. A relevant postgraduate diploma or certificate held by a degree holder is also taken into account.
Extra CPT means five CPT hours for each regulated activity you apply for, a one-off requirement taken within the six months before you apply.
Trap
Worked examples
Five new Type 1 representatives
Amy, BBA graduate: Route A. Paper 1 only.
Ben, engineering degree with two economics electives passed: Route A. Paper 1 only.
Chloe, history degree, no finance courses, no industry experience: Route B. Paper 1, plus either Papers 7 and 8 or five hours of Extra CPT.
Daniel, HKDSE, three years dealing in securities for a regulated broker in Singapore: Route C with experience (the SFC counts similarly regulated work elsewhere, para 4.1.8). Paper 1 plus Extra CPT.
Eva, HKDSE, new to the industry: Route C without experience. Papers 1, 7 and 8.
Responsible officers are different
A responsible officer applicant needs at least three years of relevant industry experience and two years of management experience on every route (para 4.2.1.2). Route A (designated degree or professional qualification) still removes the RIQ; Routes B and C need the RIQ or Extra CPT depending on experience. Every route needs the regulatory papers, which for Types 1, 4 and 8 are LE Papers 1 and 2 (para 4.2.3.1). See which papers you need for every activity.
Licensed before 2022
If you lack the qualifications above but were a licensee before 1 January 2022, paragraph 4.3.1.3 lets the SFC consider your application if you have five years’ relevant experience in the activity over the past eight, or two years over the past five plus the RIQ, and you meet the LRP requirement.
Who decides
The SFC assesses competence when it reviews your licence application, and your firm’s licensing team prepares that application. The Guidelines are the SFC’s stated approach, not a guarantee. Before you enrol for Papers 7 and 8, ask your firm which route it will use for your application, and check the current Guidelines on sfc.hk.
Whichever route applies, you need Paper 1. Start with the Paper 1 exam guide and the free mock. If you do need the practical papers, see Paper 7 vs Paper 8.
Takeaway
HKSI Prep is an independent study tool, not affiliated with or endorsed by HKSI Institute or the SFC. This is a summary, not licensing advice; the SFC decides each application. Exam details are on hksi.org.
Frequently asked questions
Can I get an exemption from HKSI Paper 7 and 8?
For an SFC licence, in effect yes if you qualify under Option A: the SFC Guidelines on Competence (October 2024), para 4.3.1.2, treat a designated-field degree, two designated-field courses or a qualification such as CFA as meeting the industry requirement, so Papers 7 and 8 are not needed. HKSI's own certificates grant no exemptions.
Can I be exempted from HKSI Paper 1?
Not because of a degree or CFA. Paragraph 4.4 of the SFC Guidelines on Competence (October 2024) lets the SFC consider exempting you from the regulatory paper if you were licensed in the same role within the past three years. The SFC decides case by case, so plan to sit Paper 1 until it confirms.
Do I need Paper 7 and 8 if I have a finance degree?
Usually not, for a representative licence. Under the SFC Guidelines on Competence (October 2024), para 4.3.1.2, a degree in accounting, business administration, economics, finance or law meets the industry-qualification requirement, so you need Paper 1 only.
Does CFA exempt me from HKSI Paper 7 and 8?
For a licensed representative, yes. The SFC Guidelines on Competence (October 2024) name CFA, CIIA and CFP as recognised professional qualifications in finance under Option A, which removes the need for Papers 7 and 8. You still need Paper 1.
I have a degree in another subject. Do I need Paper 7 and 8?
Check your transcript first. Passes in at least two courses in accounting, business administration, economics, finance or law count as Option A. Otherwise you need two years' relevant experience over the past five, or Papers 7 and 8, or five hours of Extra CPT per activity (SFC Guidelines on Competence (October 2024), para 4.3.1.2).
Do responsible officers need Paper 7 and 8?
On most routes, yes. A designated degree or recognised professional qualification removes the requirement, and some experience-based routes allow Extra CPT instead. Every route also needs three years' relevant experience, two years' management experience and the regulatory papers, such as Papers 1 and 2 for Types 1, 4 and 8 (SFC Guidelines on Competence (October 2024), para 4.2).
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