The Hong Kong Securities Institute (HKSI) is a professional body established to raise the standards of securities and finance practitioners in Hong Kong.
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All of HKSI's professional training, events and examinations programmes are developed hand in hand with high profile market practitioners. Managing Directors, CEO's and Chairmen of major stock broking houses, investment banks, fund managers and insurance organisations serve on HKSI Committees guiding the direction of our service offering.
With the introduction of the Closer Economic Partnership Arrangement (CEPA) in January 2004, the links between the financial market communities in Hong Kong and Mainland China have become closer. Recognising the importance of this continuing trend to our members, the HKSI has expanded its service offering into the Mainland China market, with the introduction of Mainland China training programs and examinations to be held throughout 2005.
The HKSI views the CEPA and the subsequent mutual recognition of qualifications of securities and futures practitioners by both the Securities and Futures Commission (SFC) and China Securities Regulatory Commission as a significant step forward in the development of closer co-operation between the Hong Kong and Mainland China financial services industries. Seeing the demand of Mainland practitioners well-versed in the rules and regulations governing Hong Kong and international markets, the HKSI opened a representative office in Shenzhen in May 2008. The mission of the Mainland office is to establish the necessary grounding for fruitful exchanges between Mainland and Hong Kong professionals by providing a direct means for interest individuals to gain a better understanding of the Hong Kong securities market and access information on various professional examinations and trainings.
The Licensing Examination for Securities and Futures Intermediaries (LE) offered by the HKSI has been approved by the SFC as the Recognised Industry Qualifications and Local Regulatory Framework Papers for meeting its competence requirements and is therefore the benchmark qualification for market practitioners. This practical, market focused examination covers a series of examinations across different regulated activities. Market participants are advised to check with the SFC regarding the specific examinations required for the issuance of a licence in each designated regulated activity.
Professionals such as those working in the areas of dealing in securities are required by the Securities and Futures Ordinance (SFO) to be licensed and therefore need to gain LE qualification for practices in regulated activities. The SFO established a single licensing regime with 10 types of regulated activities (RAs). The regulated activities include:
| 10 types of Regulated Activities (RA) |
|---|
| Type 1 - Dealing in Securities |
| Type 2 - Dealing in Futures Contracts |
| Type 3 - Leveraged Foreign Exchange trading |
| Type 4 - Advising on Securities |
| Type 5 - Advising on Futures Contracts |
| Type 6 - Advising on Corporate Finance |
| Type 7 - Providing Automated Trading Services |
| Type 8 - Securities Margin Financing |
| Type 9 - Asset Management (Amended L.N. 28 of 2011) |
| Type 10 : providing credit rating services (Added L.N. 28 of 2011) |
The LE has 12 examination papers which focus on regulatory and technical matters.
| Examination Papers |
|---|
| Regulatory Papers |
| Paper 1 - Fundamentals of Securities and Futures Regulation |
| Paper 2 - Regulation of Securities |
| Paper 3 - Regulation of Derivatives |
| Paper 4 - Regulation of Credit Rating Services |
| Paper 5 - Regulation of Corporate Finance |
| Paper 6 - Regulation of Asset Management |
| Practical Papers |
| Paper 7 - Financial Markets |
| Paper 8 - Securities |
| Paper 9 - Derivatives |
| Paper 10 - Credit Rating Services |
| Paper 11 - Corporate Finance |
| Paper 12 - Asset Management |
The HKSI will award certificates to candidates who have successfully completed a preset combination of examination papers within 3 years.
In 2005 the HKSI launched the outstanding achievers awards scheme to encourage outstanding achievers in the LE examinations. Candidates of the Month was first introduced for the LE examinations held in July 2005; the Awards Scheme recognises LE candidates who attempt an LE Paper for the first time and achieve 95% or above of the total score in each monthly examination session as "Candidates of the Month". Candidates of the Year are those LE candidates who score the highest mark of each LE Paper during a calendar year from 2005 onwards. Multiple winners of Candidates of the Year award are Tin Ding Sin and Geoffrey Howie.
| HKSI Certificate | HKSI Practising Certificate | HKSI Specialist Certificate |
|---|---|---|
| Securities | Papers 1 + 7 + 8 | Papers 1 + 2 + 7 + 8 |
| Derivatives | Papers 1 + 7 + 9 | Papers 1 + 3 + 7 + 9 |
| Credit Rating Services | Papers 1 + 7 + 10 | Papers 1 + 4 + 7 + 10 |
| Corporate Finance | Papers 1 + 7 + 11 | Papers 1 + 5 + 7 + 11 |
| Asset Management | Papers 1 + 7 + 12 | Papers 1 + 6 + 7 + 12 |
The HKSI also offers job specific examination qualifications. For those practitioners looking to be involved in the Mandatory Provident Fund industry, the HKSI offers the MPF Intermediaries Examination (MPF).
To help practitioners fulfill their life long learning goals and licensing requirements, the HKSI offers an advanced level comprehensive industry examination, the Professional Diploma in Financial Markets (PDFM). The PDFM offers students a high degree of flexibility, allowing them to pursue the programme at their own pace and by their preferred mode of study.
For those candidates interested in developing international qualifications in Hong Kong, the HKSI is now able to offer the CIWM Final Examination and CIIA Final Examination.