SFC licences, the HKSI exams and the IIQE

To carry on a regulated activity in Hong Kong in securities, futures, asset management, corporate finance advice, or similar work, or to work as an insurance intermediary, you usually need the relevant licence or registration, and you need to pass the specified examination. The notes below set out the licensing framework of the Securities and Futures Commission (SFC), the papers of the HKSI (Hong Kong Securities and Investment Institute) Licensing Examination (LE) and how they correspond to regulated activities, and the basic requirements of the Insurance Intermediaries Qualifying Examination (IIQE). They follow material published by the SFC, HKSI Institute, and the examination body appointed by the Insurance Authority. Checked 18 October 2026.

The SFC's 13 regulated activities

Schedule 5 to the Securities and Futures Ordinance defines the following regulated activities:

1. Type 1: dealing in securities.
2. Type 2: dealing in futures contracts.
3. Type 3: leveraged foreign exchange trading.
4. Type 4: advising on securities.
5. Type 5: advising on futures contracts.
6. Type 6: advising on corporate finance.
7. Type 7: providing automated trading services.
8. Type 8: securities margin financing.
9. Type 9: asset management.
10. Type 10: providing credit rating services.
11. Type 11: dealing in OTC derivative products or advising on OTC derivative products (not yet in operation for licensing purposes).
12. Type 12: providing client clearing services for OTC derivative transactions (not yet in operation for licensing purposes).
13. Type 13: providing depositary services for relevant collective investment schemes.

Who needs a licence

1. If you perform a regulated function for the licensed corporation you belong to, you must become a licensed representative of that corporation (sections 114(3) and 114(4) of the Securities and Futures Ordinance). An executive director of a licensed corporation must also be approved as a responsible officer.
2. An authorized financial institution (a bank) that carries on a regulated activity registers with the SFC as a registered institution. A person who performs a regulated function for a registered institution does not need an SFC licence, but must be entered in the register kept by the Hong Kong Monetary Authority.
3. The SFC states that, for licensing purposes, a sole proprietorship or a partnership is not an acceptable business structure.
4. What this means if you are applying: the arrangements for joining a regulated post usually include licensing. The exact requirements follow the employer's terms of employment. Before you start, ask which types of regulated activity you must be licensed for, which papers you must sit, who pays the examination fees, and what happens if you do not pass.

How the SFC Guidelines on Competence are structured

An application to be a licensed representative generally has to meet the following:

1. An academic or professional qualification.
2. A recognised industry qualification (RIQ), or extra continuous training hours in its place (under the exemption conditions in paragraph 4.4 of the Guidelines).
3. The local regulatory framework paper (LRP).
4. Relevant industry experience (depending on the route you take).

Points added in the SFC's frequently asked questions:

1. The LRP must generally have been passed within the 3 years before the application. If you are a current licensee, or you held a licence at some point in the past 3 years, the SFC may accept an examination result that is more than 3 years old (Guidelines, paragraphs 4.1.5 and 4.1.6).
2. If you use extra continuous training hours in place of the RIQ or the LRP, you may complete them within the 6 months before the application, or within 12 months after approval. If you do not complete them, your licensed status may be affected.
3. If you return to the industry after leaving it, you must complete 5 hours of continuous training for each regulated activity for each year away. A period of less than 1 year counts as 1 year.

How HKSI LE papers map to regulated activities

HKSI Institute divides the LE into regulatory papers (Papers 1 to 6, and Paper 18) and practical papers (Papers 7 to 12, and Paper 19). The requirements for a licensed representative are below. A responsible officer also needs the corresponding advanced regulatory paper.

1. Types 1, 4, and 8: local regulatory Paper 1; recognised industry qualification Paper 7 and Paper 8.
2. Types 2 and 5: Paper 1; Paper 7 and Paper 9.
3. Type 6: Paper 1; Paper 7 and Paper 11. Sponsor work also requires Paper 15 (principals) or Paper 16 (representatives). Work that involves the Code on Takeovers and Mergers and the Code on Share Buy-backs also requires Paper 17, unless an exemption applies.
4. Type 9: Paper 1; Paper 7 and Paper 12.
5. Type 10: Paper 1; Paper 7 and Paper 10.
6. Type 13: Paper 1; Paper 7 and Paper 19.
7. Type 3: HKSI does not offer an examination for this type. Type 7: there is no LRP requirement and no RIQ requirement.

Regulatory papers for a responsible officer: Types 1, 4, and 8 are Paper 1 and Paper 2; Types 2 and 5 are Paper 1 and Paper 3; Type 6 is Paper 1 and Paper 5; Type 9 is Paper 1 and Paper 6; Type 10 is Paper 1 and Paper 4.

Examination arrangements for Papers 1, 2, and 3, as published by HKSI

1. Format: computer-based multiple choice. The questions are in English and in Traditional Chinese. The system interface is in English. The pass mark is 70% on each paper.
2. Paper 1, Fundamentals of Securities and Futures Regulation: 60 questions, 90 minutes. Fee: HK$1,800 at a Hong Kong examination centre; HK$2,250 at an overseas examination centre.
3. Paper 2, Regulation of Securities: 40 questions, 60 minutes. Fee: HK$2,000 in Hong Kong; HK$2,450 overseas. From 9 December 2026, syllabus version 2.10 applies.
4. Paper 3, Regulation of Derivatives: 40 questions, 60 minutes. Fee: HK$2,000 in Hong Kong; HK$2,450 overseas. From 9 December 2026, syllabus version 2.9 applies.
5. Paper 7, Financial Markets: 60 questions, 90 minutes. Paper 8, Securities: 40 questions, 60 minutes. The fee for Paper 7 at a Hong Kong examination centre is HK$1,620.
6. The question types are simple multiple choice and complex multiple choice (you choose one option from combinations of I, II, III, and IV). A wrong answer is not deducted.

How to prepare:

1. Read the official study manual chapter by chapter against the syllabus. Mark the numerical points (time limits, ratios, penalties).
2. On a complex multiple-choice question, decide whether each statement is true or false first, then match the combination.
3. In the stem, read "correct", "incorrect", and "most likely" with care.
4. On the number of questions and the time limit, Papers 1, 2, and 3 average about 1.5 minutes a question. Do not stay too long on one question.

The Insurance Intermediaries Qualifying Examination

1. Each individual licensee (licensed individual insurance agent, licensed technical representative (agent), and licensed technical representative (broker)) must pass the relevant IIQE papers, unless exempted. The Vocational Training Council (VTC) is the examination body appointed by the Insurance Authority.
2. The papers: Paper 1, Principles and Practice of Insurance (compulsory); Paper 2, General Insurance; Paper 3, Long Term Insurance; Paper 5, Investment-linked Long Term Insurance. Paper 6 is the examination for travel insurance agents.
3. Line of business and papers: general insurance requires Paper 1 and Paper 2; long term insurance, not including investment-linked business, requires Paper 1 and Paper 3; business that includes investment-linked long term insurance requires Paper 1, Paper 3, and Paper 5.
4. Format: Paper 1 and Paper 5 are 2 hours each, with 75 questions and 80 questions respectively. Paper 2 and Paper 3 are 1 hour 15 minutes each, with 50 questions each. Each paper sets out Chinese and English side by side. Every question is compulsory. The pass mark is 70%. Only a pass or a fail is published. The mark is not published.
5. Fees (written / computer-based): Papers 1, 2, and 3 are HK$195 / HK$265 each. Paper 5 is HK$325 / HK$390.
6. If you arrive 15 minutes late or later, you are treated as absent. The fee is not refunded and is not transferred.
7. From 2 May 2013, the MPF intermediaries examination is no longer part of the IIQE. The Mandatory Provident Fund Schemes Authority sets the rules separately.

Non-local students and visa holders

1. Whether you may enter, and which identity documents the registration requires, follow the examination handbooks published by HKSI Institute and the VTC.
2. Carrying on a regulated activity after you are licensed is employment. It must fit the conditions of stay on your visa. A student visa restricts work (see the piece in this series on working while you study). Holders of the Immigration Arrangements for Non-local Graduates (IANG) and of the Top Talent Pass Scheme may take up employment freely.
3. Extending IANG as an insurance agent: the Immigration Department website has no note written specifically for insurance agents. The official condition is to show that you have taken up employment, or that you have established or joined a business. If you have only passed the examination, and you have no Offer and no proof of a business, you cannot produce the documents an extension must include.

Sources

• Securities and Futures Commission, Do you need a licence or registration? webpage (checked 18 October 2026).
• Securities and Futures Commission, Guidelines on Competence, and frequently asked questions on competence requirements for individuals (checked 18 October 2026).
• HKSI Institute, Licensing Examination for Securities and Futures Intermediaries, overview page (checked 18 October 2026).
• Vocational Training Council, Insurance Intermediaries Qualifying Examination Handbook (September 2026 edition).
• Insurance Authority, Insurance Intermediaries Qualifying Examination webpage (as cited in the examination handbook).