HKSI Paper 4 study guide
HKSI Paper 4 · Work through your exam, one topic at a time.
HKSI Paper 4 is one of the licensing examinations administered by the Hong Kong Securities and Investment Institute (HKSI Institute) for individuals seeking registration with the Securities and Futures Commission (SFC) to carry out regulated activities. It is typically associated with Type 4 (advising on securities) and Type 6 (advising on corporate finance) regulated activities, though the SFC determines the exact paper requirements for each role. The HKSI Paper 4 study guide has 5 sections and about 2,183 words.
01Regulatory Framework and Market Structure
Paper 4's first domain tests whether you can place a Hong Kong intermediary, a product and a transaction inside the right regulatory box. Questions are typically scenario-based: who must be licensed, which rulebook applies, and what happens when a firm operates outside the perimeter.
479 words, about 2 min02Corporate Finance and Capital Raising
Corporate finance questions test the Listing Rules, the Takeovers Code and company law as a single system: how an issuer gets listed, how it raises further capital, and how control changes are policed. Main Board Rule 8.05 offers three tests.
463 words, about 2 min03Asset Management and Fund Products
Asset management questions test the boundary between wholesale and retail: which fund vehicles exist, when a product may be offered to the Hong Kong public, and what a Type 9 manager must do. Section 103 of the SFO prohibits issuing advertisements or invitations to the public to acquire interests in a collective investment scheme unless the product is authorised by the SFC or an exemption applies.
429 words, about 2 min04Derivatives and Structured Products
Derivatives questions test product mechanics as much as regulation: what is exchange-traded, what is over-the-counter, how structured products work, and what must be disclosed before a client trades. HKFE lists futures and options; SEHK lists stock options, derivative warrants and callable bull/bear contracts; HKCC and SEOCH clear the relevant contracts.
396 words, about 2 min05Client Advisory and Professional Conduct
Conduct questions test the SFC Code of Conduct in practice: how a firm knows its client, recommends a product, handles money and securities, manages conflicts and answers complaints. Paragraph 5.2 requires an assessment of the client's financial situation, investment experience and investment objectives before a recommendation.
416 words, about 2 min