HKSI Paper 4 study plan
HKSI Paper 4 · Give each week a clear focus.
8 weeks · About 6 hours per week
Regulatory framework and market structure
Map the SFC's regulatory architecture: identify the roles of the SFC, HKMA, and SEHK, and list the ordinances (SFO, SFC Ordinance) that govern licensing and market conduct
Differentiate Type 1, 2, 4, 5, 9 licenses by permitted activities and give one concrete example of a firm holding each
Explain the market structure of Hong Kong equities: listing venues, clearing and settlement via CCASS, and the role of HKEX
Define key regulatory terms (licensed corporation, responsible officer, substantial shareholder) and state the threshold or condition for each
Your checkpoint
A one-page regulatory map (diagram or table) linking each regulator to its statutory powers and the license types it supervises, plus a 10-term glossary with definitions in your own words
Regulatory framework and market structure & Client advisory and professional conduct
Outline the SFC's Code of Conduct core principles and match each principle to a practical scenario (e.g., client suitability, conflicts of interest)
Describe the client onboarding process: know-your-client, risk profiling, and the distinction between professional and retail investors
Explain the complaint handling and disciplinary framework, including the SFC's power to suspend or revoke licenses
List record-keeping and reporting obligations for licensed corporations and state the retention period for client records
Your checkpoint
A compliance checklist of 15 items a licensed representative must complete before executing a client's first trade, each tied to a specific rule or code paragraph
Corporate finance and capital raising
Compare equity and debt capital raising: IPO, placing, rights issue, and bond issuance, including the approval steps and disclosure documents required
Explain the Listing Rules' eligibility tests (profit, market cap/revenue, cash flow) and the role of the sponsor
Calculate the impact of a rights issue or open offer on a shareholder's ownership and theoretical ex-rights price
Describe corporate actions (dividends, bonus issues, share splits) and how each affects share price and share count
Your checkpoint
A worked example set of 5 corporate-finance calculations (TERP, dilution, bonus issue adjustment) with step-by-step solutions and a 1-page summary of the IPO process from application to listing
Corporate finance and capital raising & Asset management and fund products
Distinguish authorized from unauthorized collective investment schemes and state the SFC authorization requirements and exemptions
Compare fund structures (unit trusts, mutual funds, ETFs, hedge funds) on legal form, pricing, and liquidity
Explain the offering document requirements for retail funds and the role of the trustee/custodian
Identify the fee and expense components of a fund (management fee, performance fee, ongoing charges) and compute their effect on net returns
Your checkpoint
A comparison table of 6 fund types across structure, regulatory status, fee level, and liquidity, plus a calculation showing the 5-year return drag of a 1.5% annual fee on a HK$100,000 investment
Asset management and fund products & Derivatives and structured products
Explain the mechanics of futures and options: contract specifications, margin, mark-to-market, and settlement
Distinguish exchange-traded from over-the-counter derivatives and describe the counterparty and liquidity risks of each
Describe structured products (e.g., equity-linked notes, derivative warrants, callable bull/bear contracts) and identify the embedded derivative exposure
Apply the HKMA/SFC investor protection measures for derivative products, including the risk disclosure statement and suitability assessment
Your checkpoint
A payoff diagram and risk summary for three structured products (ELN, derivative warrant, CBBC) showing maximum gain, maximum loss, and the market view each product expresses
Derivatives and structured products & Client advisory and professional conduct
Explain the suitability obligation: how to match a client's risk tolerance, investment horizon, and knowledge to a recommended product
Describe the disclosure requirements for conflicts of interest, commissions, and inducements under the Code of Conduct
Outline the complaint and dispute resolution channels (SFC, Financial Dispute Resolution Centre) and the licensee's obligations when a complaint arises
Apply anti-money laundering and counter-terrorist financing requirements to client onboarding and ongoing monitoring
Your checkpoint
Three client case studies (retail, professional, corporate) with a written suitability rationale for a recommended product and a list of disclosures that must be made before the transaction
Regulatory framework and market structure & Corporate finance and capital raising & Asset management and fund products & Derivatives and structured products & Client advisory and professional conduct
Complete a timed 60-question mock exam covering all five domains and record the score by domain
Review every incorrect answer and write the underlying rule or concept in one sentence
Re-read the weakest two domains' summary notes and redo 20 questions from those domains
Identify recurring trap patterns (e.g., 'always/never' wording, confusing license types) and note them for exam day
Your checkpoint
A mock exam score report by domain with a written correction log of every wrong answer and a prioritized list of the three weakest topics to revisit
Regulatory framework and market structure & Corporate finance and capital raising & Asset management and fund products & Derivatives and structured products & Client advisory and professional conduct
Complete a second timed mock exam under exam conditions and compare the score with week 7
Drill the three weakest topics from week 7 until you can explain each in under two minutes without notes
Review the regulatory map, compliance checklist, and calculation set created in weeks 1–4
Finalize exam-day logistics and a last-24-hour revision sheet limited to key thresholds, license types, and formulas
Your checkpoint
A final one-page revision sheet (thresholds, license types, formulas, and top 10 trap patterns) and a second mock score showing improvement over week 7
Milestones
Week 4: Score at least 70% on a 30-question quiz covering Domains 1–3, and produce the fund comparison table and fee-drag calculation without referring to notes
Week 6: Explain the suitability obligation and the structured-product risk disclosure requirements aloud in under five minutes each, and complete the three client case studies with correct product-to-client matching
Week 8: Score at least 75% on the second full mock exam, with no domain below 60%, and demonstrate recall of the one-page revision sheet from memory