HKSI LE Paper 2 study plan
HKSI LE Paper 2 · Give each week a clear focus.
8 weeks · About 7 hours per week
Regulation and licensing of securities and futures activities
Map the licensing regime for securities and futures activities, distinguishing Type 1 to Type 13 regulated activities and which licence class covers each
Explain the roles, powers and enforcement tools of the Securities and Futures Commission and the Hong Kong Monetary Authority in supervising intermediaries
Outline the fit and proper criteria for licence applicants and the ongoing obligations that follow from licensing
Draft a one-page comparison of licensing requirements for a corporate intermediary versus an individual representative
Your checkpoint
A completed one-page table listing all 13 regulated activities with their licence type, typical business example, and one key regulatory restriction each
Regulation and licensing of securities and futures activities
Describe the conduct requirements in the SFC's Code of Conduct, including know-your-client, suitability, and client agreement obligations
Distinguish the notification, approval and reporting obligations that arise when a licensed firm changes ownership, management or business scope
Explain the disciplinary sanctions available against licensed persons and how they are applied in practice
Summarise the anti-money-laundering and counter-terrorist-financing duties that attach to licensed intermediaries
Your checkpoint
A 15-question self-test on licensing and conduct rules, scored and with every wrong answer rewritten as a corrected statement
Corporate finance and advisory services
Explain the regulatory framework for corporate finance advisers and the sponsor regime for new listings
Describe the Listing Rules requirements for listing eligibility, the application process and the roles of sponsors and underwriters
Outline the rules governing connected transactions, notifiable transactions and disclosure of inside information
Identify the core requirements for takeovers, mergers and share buy-backs under the Codes on Takeovers and Mergers
Your checkpoint
A one-page flowchart of the IPO process from appointment of sponsor to listing, annotated with the key regulatory approval at each stage
Corporate finance and advisory services & Asset management and investment products
Compare the principal types of collective investment scheme authorised in Hong Kong and the authorisation criteria applied to them
Explain the disclosure, valuation and dealing requirements for authorised funds and the role of the trustee or custodian
Describe the structure and regulation of real estate investment trusts and exchange-traded funds
Distinguish the regulatory treatment of hedge funds and private funds offered to professional investors
Your checkpoint
A comparison sheet of five product types covering authorisation status, investor eligibility, disclosure document and key risk factor
Asset management and investment products
Explain the duties of an asset manager under the fund manager code of conduct, including best execution and conflicts of interest
Describe the suitability and product-due-diligence obligations that apply when advising on or distributing investment products
Outline the rules on marketing investment products, including the restrictions on advertisements and the professional investor exemption
Summarise the disclosure requirements for fees, charges and ongoing costs in managed products
Your checkpoint
A written suitability assessment for two hypothetical clients, each matched to a product with the reasoning documented
Market conduct, ethics and compliance
Explain the market misconduct offences under the Securities and Futures Ordinance, including insider dealing, false trading and market manipulation
Describe the role of the Market Misconduct Tribunal and the sanctions it can impose
Outline the ethical standards expected of licensed persons, including conflicts of interest, confidentiality and handling of client assets
Explain the complaints-handling and dispute-resolution routes available to clients of licensed firms
Your checkpoint
A case-note of 500 words analysing one market misconduct scenario, identifying the offence, the evidence required and the likely sanction
Market conduct, ethics and compliance & Regulation and licensing of securities and futures activities
Integrate compliance obligations across all four domains into a single checklist a licensed firm would use
Revisit the weakest topics identified in earlier self-tests and correct each misconception
Practise applying rules to scenario questions under timed conditions
Explain how the SFC and HKMA coordinate supervision where banking and securities activities overlap
Your checkpoint
A timed 40-question mock test covering all four domains, with a score and a written review of every error
Regulation and licensing of securities and futures activities & Corporate finance and advisory services & Asset management and investment products & Market conduct, ethics and compliance
Consolidate the highest-weight rules from each domain into a condensed revision sheet
Complete a full-length timed mock examination under exam conditions
Identify and drill the three weakest sub-topics revealed by the mock
Rehearse the calculation and definitional items that are most easily confused across domains
Your checkpoint
A full-length timed mock exam completed with a final score, plus a one-page revision sheet of the ten rules most likely to be tested
Milestones
Week 2: Score at least 70% on the 15-question licensing and conduct self-test and show corrected statements for every error
Week 4: Produce both the IPO process flowchart and the five-product comparison sheet without referring to notes
Week 6: Complete the market misconduct case-note identifying the correct offence and sanction, scoring at least 70% against the marking points
Week 8: Achieve at least 75% on the full-length timed mock exam across all four domains