Type 2 Securities Sales Representative Examination study plan

Map every product family in the syllabus (equities, bonds, funds, structured and equity-linked notes, money market instruments) to its issuer, payoff profile and principal risk

Distinguish bond price/yield mechanics by working through duration, modified duration and convexity on at least five hand-calculated examples

Explain money market instrument features (T-bills, commercial paper, certificates of deposit, repo) and how discount versus add-on yield quoting differs

Build a one-page comparison table of product features, risks and typical investor profile for each product type

Describe equity instrument types (ordinary shares, preference shares, depositary receipts) and the rights each confers

Explain corporate actions (rights issues, bonus issues, splits, dividends) and calculate the theoretical ex-price adjustment for each

Analyse equity-linked structures (convertible bonds, equity-linked notes, warrants) by identifying the embedded option and its payoff at maturity

Compare valuation approaches (P/E, dividend discount, EV/EBITDA) and state the assumptions each relies on

Outline the regulatory architecture: the securities regulator, exchange, clearing house and self-regulatory bodies, and state each one's function

Identify the core licensing, conduct and disclosure obligations that attach to a licensed sales representative

Apply the code of conduct principles (integrity, fair dealing, client priority, confidentiality, conflicts of interest) to at least six realistic scenario prompts

Distinguish market abuse offences (insider dealing, market manipulation) from legitimate dealing and list the red flags for each

Classify collective investment schemes by legal structure, subscription/redemption mechanics and fee model (initial, management, performance, redemption)

Calculate net asset value per unit and the effect of front-end and back-end loads on an investor's net return

Apply the suitability process end to end: know-your-client data, risk profiling, product risk rating and appropriateness matching

Identify account-handling requirements including documentation, authority to trade, third-party mandates and record retention

Sequence the order lifecycle from client instruction through validation, routing, execution, allocation and confirmation

Distinguish order types (market, limit, stop, fill-or-kill, all-or-none) and select the appropriate type for stated client objectives

Apply best-execution considerations and identify the handling rules for client versus principal orders and order aggregation

Explain client money and asset segregation, plus the escalation path for a suspected unauthorised transaction

Revisit the highest-yield regulatory facts (licensing thresholds, disclosure timelines, reporting duties) using spaced retrieval rather than re-reading

Re-derive equity and fixed income calculations from memory: ex-rights price, yield to maturity, accrued interest, duration

Link market structure to product pricing by explaining how exchange trading, market making and settlement affect execution cost

Close every gap flagged during weeks 1 to 5 by rewriting weak notes into concise fact cards

Practise mixed-topic scenario questions that combine suitability, order handling and ethics in a single fact pattern

Draft compliant client communication for three situations: a product recommendation, a complaint response and a conflicts disclosure

Time yourself on a 60-question mock spanning all eight domains and log every error by domain and error type

Re-teach the three weakest topics in writing as if explaining them to a new colleague

Complete two full-length timed mock exams under exam conditions and record scores by domain

Review only the error log and fact cards, avoiding new material in the final days

Rehearse calculation shortcuts for yield, duration, NAV and ex-rights price until each is completed accurately under time pressure

Confirm exam-day logistics and build a one-page formula and definition sheet for final review