Type 2 Securities Sales Representative Examination case studies
Type 2 Securities Sales Representative Examination · Put your knowledge to work in context.
The Type 2 Securities Sales Representative Examination is a licensing assessment for individuals who advise clients on, and sell, non-equity securities products - most commonly bonds, money market instruments, collective investment schemes and structured products. It is typically taken by new joiners to retail or private-bank sales desks, by relationship managers who need product-advice permissions, and by operations or product staff moving into a client-facing role. The Type 2 Securities Sales Representative Examination case studies are 5 cases and about 4,641 words.
1The Retired Teacher, the PI Form and the Private Credit Fund
Mr Cheung, 64, retired last year after 35 years as a secondary school teacher. His liquid assets are HK 5.0 million in 12-month HKD time deposits and HK 3.6 million in HK-listed blue-chip shares; he also has HK 900,000 of accrued MPF benefits and rental income of HK 18,000 a month.
968 words, about 5 min2The 9.50% Perpetual and the Property Deposit
Ms Lam, 55, is a HKD-based client with a HK 6.0 million portfolio held with your firm (60% in HKD deposits and investment-grade HKD bonds, 40% in a diversified equity fund). Her documented risk profile is 'medium', and she told you in March that she needs to release HK 1.5 million in about 18 months to complete a property purchase.
937 words, about 5 min3Averaging Down on a Bull CBBC Four Per Cent from the Call Price
Mr Ng, 38, has traded for two years and holds a margin account with your firm with HK 680,000 of equity, including his existing CBBC position. In February he bought 500,000 units of a bull CBBC issued by an affiliate of your firm over stock X.
942 words, about 5 min4Redemption Suspension and the Branch Head's 'Front of the Queue'
Mrs Ip, 58, holds HK 4.0 million in the 'Asia High Yield Bond Fund', an SFC-authorised fund distributed by your firm; she has held it for three years. In March she told you she would need HK 2.0 million in early June to complete the purchase of a flat, and on 2 May she submitted a redemption request for that amount, ahead of the fund's 3 June dealing cut-off.
922 words, about 5 min5The Dinner Conversation and the Hedge Fund's Sell Order
You are a Type 2 sales representative covering hedge funds. On Tuesday evening a former colleague now in your firm's corporate finance team, who is working on a rights issue for a listed issuer, tells you over dinner: 'Don't touch Hing Wat Holdings - the interim numbers coming Monday are 35% below consensus and the profit warning goes out Friday night.' Your firm is not on the Hing Wat announcement, but your corporate finance colleague is.
872 words, about 4 min