SFC Licence Exams: HKSI Papers by Licence Type

There is no single “SFC licence exam”. The SFC recognises HKSI Institute's Licensing Examination papers, and which ones you sit for a Type 1, Type 4, Type 9 or any other licence follows a fixed table.

The papers you need depend on two things: the regulated activity your firm will license you for, and whether you will be a licensed representative or a responsible officer. Both come from the SFC’s Guidelines on Competence (October 2024), which list a local regulatory framework paper (LRP) and a recognised industry qualification (RIQ) for each activity. HKSI’s Licensing Examination supplies most of them.

Step 1: Name the regulated activity

Schedule 5 to the Securities and Futures Ordinance (Cap. 571) defines the regulated activities. Your firm’s licence tells you which you will carry on. The most common for new joiners are Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management). If you are unsure whether a role needs a licence, the SFC explains the test on its page Do you need a licence or registration?

Step 2: Find your papers

Types 11 and 12 also appear in the Guidelines, but their requirements apply only when the licensing regime for those activities commences. HKSI says it will introduce Papers 13 and 14 at that point; neither exists today.

Extra papers for specialist work

• Sponsor work under Type 6: Paper 15 for sponsor principals, Paper 16 for representatives doing sponsor work.
• Takeovers work under Type 6: Paper 17 if you advise on matters under the Codes on Takeovers and Mergers and Share Buy-backs, unless exempted.

These are additional competence requirements, set out in the Appendices to the Guidelines on Competence.

Worked examples

• A new dealer at a securities broker (Type 1 representative), economics degree: Paper 1.
• The same dealer with an unrelated degree and no experience: Paper 1, plus Papers 7 and 8 or five hours of Extra CPT.
• A fund analyst becoming a Type 9 representative, finance degree: Paper 1.
• A Type 1 representative promoted to responsible officer: Papers 1 and 2, plus the RIQ unless a designated degree or professional qualification covers it, with three years’ relevant experience and two years’ management experience.
• A dealer adding Type 2 (futures): the RIQ changes from Papers 7 and 8 to Papers 7 and 9. The Guidelines’ own example (para 4.1.6) says a person who passed Papers 1 and 7 and was licensed for Type 1 within the past three years need not re-take them.

Bank staff

Banks register with the SFC rather than holding a licence, and their staff go on the HKMA register. The Guidelines apply the same tests: a relevant individual meets the representative requirements and an executive officer meets the responsible officer requirements (para 2.2).

Exemptions

Paragraph 4.4 of the Guidelines lets the SFC grant full or conditional exemptions from the RIQ or LRP. For example, a full LRP exemption is available if you were licensed within the past three years in the same role for an activity with the same LRP. Exemptions are case by case and apply to your role at a specific firm. HKSI does not grant exemptions for its own certificates.

Paper 1 sits in every route above except Types 3 and 7. Start with the Paper 1 exam guide or the free mock.

HKSI Prep is an independent study tool, not affiliated with or endorsed by HKSI Institute or the SFC. The SFC decides each application; check the current Guidelines on sfc.hk and paper details on hksi.org.