English HKSI LE Paper 5 Pass Paper Question Bank (QB)

2CEXAM Mock Question
Licensing Examination Paper 5
16-Sep-19
19:43:54
1 Which of the following are laws and rules that govern corporate finance activities in Hong Kong? Topic 1
I. Securities and Futures Ordinance (SFO)
II. Companies Ordinance (CO)
III. Mainboard Listing Rules
IV. The Code on Takeovers and Mergers
A I, II, III Chapter 1
B I, II, IV Section 1
C I, III, IV QID 1720
D I, II, III, IV Ans D Hot
Exp All of the above are laws and rules that govern corporate finance activities.
2 Which of the following are not laws and rules that govern corporate finance activities in Hong Kong? Topic 1
I. Share Buy-backs Code
II. GEM Listing Rules
III. Mining Companies Listing Rules
IV. Mutual Fund Listing Rules
A I, II Chapter 1
B I, III Section 1
C II, III QID 1702
D III, IV Ans D Hot
Exp Laws and rules that govern corporate finance activities in Hong Kong include:
I. Main Board Listing Rules
II. GEM Listing Rules
III. Takeovers Code
IV. Share Buy-backs Code
3 In the Securities and Futures Ordinance (SFO), chapters related to licensing and registration may apply to? Topic 1
I. Staffs of licensed corporations
II. Staffs of registered agents
III. Banks conducting regulated activities
IV. Professional investors
D II, III, IV Ans A Hot
Exp In the Securities and Futures Ordinance (SFO), chapters related to licensing and registration may apply to?
I. Licensed corporations
II. staffs of licensed corporations
III. Banks conducting regulated activities (registered institutions)
IV. Staffs of banks conducting regulated activities (registered institutions)
Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.1

Please be reminded our company has no relationship with the Hong Kong Securities and Investment Institute (HKSI). The study materials we provide are
not related to the Hong Kong Securities and Investment Institute (HKSI) in any manner. The Hong Kong Securities and Investment Institute (HKSI) does
not offer any HKSI Past Paper or HKSI Mock Paper for sale.
4 Every person undertaking the regulated activity of advising on corporate finance will need to? Topic 1
A Be a registered trader in the SEHK. Chapter 1
B Be licensed by or registered with the SFC as a corporate finance adviser. Section 2
C Start their practice within a registered entity before advising on their own. QID 1727
D Comply with the CFA Code in all the activities they perform. Ans B Hot
Exp Persons undertaking the regulated activity of advising on corporate finance will need to belicensed by or
registered with the SFC as a corporate finance adviser (Type 6 regulatedactivity) unless an exemption
applies.
5 Which of the following codes and guidelines are corporate finance advisers subjected to? Topic 1
I. Code of Conduct for Credit Rating Agencies
II. Management, Supervision and Internal Control Guidelines
III. Code of Conduct
IV. CFA Code
A I, III, V Chapter 1
B I, II, III Section 2
C II, III, IV QID 1706
D I, II, IV Ans C Hot
Exp Corporate finance advisers are subjected to <<Management, Supervision and Internal Control
Guidelines>>、<<Code of Conduct>> and <<CFA Code>>.
6 Corporate Finance is classified as which of the following type of regulated activity under the SFO? Topic 1
A Type 2 Chapter 1
B Type 5 Section 2
C Type 6 QID 1705
D Type 9 Ans C Hot
Exp Corporate Finance is Type 6 Regulated Activity under the SFO.

7 Which of the following code or ordinance provides for the licensing and registration of corporate finance Topic 1
advisers?
A Securities and Futures Ordinance (SFO) Chapter 1
B Companies Ordinance (CO) Section 3
C Listing Rules of the Stock Exchange QID 1704
D Takeovers and Mergers Code Ans A Hot
Exp Securities and Futures Ordinance (SFO) provides for the licensing and registration of corporate finance
advisers.

8 Which of the following code or ordinance lays down the overall parameters which governs corporate Topic 1
finance activities in Hong Kong?
A Securities and Futures Ordinance (SFO) Chapter 1
B Companies Ordinance (CO) Section 3
C Listing Rules of the Stock Exchange QID 1703
D Takeovers and Mergers Code Ans A Hot
Exp Securities and Futures Ordinance (SFO) ays down the overall parameters which governs corporate finance
activities in Hong Kong.
9 Which of the following is a regulatory objective of the SFC? Topic 1
I. Provide protection to the investing public
II. Reduce non-systematic risk in the industry
III.Assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate
steps in relation to the industry.
IV. Assist the HKMA in maintaining the stability of currency in
Hong Kong
A I, III Chapter 1
B I, III, IV Section 4
C II, IV QID 58
D I, II, IV Ans A Hot
Exp The objectives of the SFC in relation to the securities and futures industry, as stated in s. 4, SFO, are to:
(c) provide protection to the investing public;
(f) assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate
steps in relation to the industry.
10 Which of the following is a primary objective of Hong Kong financial regulators? Topic 1
A Enhance international and local confidence in the financial markets of Hong Kong. Chapter 1
B Encourage the development of new products Section 4
C Operate profitable exchanges in Hong Kong QID 6
D Reduce trading hours Ans A Hot
Exp Encouraging the development of new products, operating profitable exchanges in Hong Kong and
reducing trading hours are all actions. They are action verbs but not objective description. Objectives can
only be objective description, therefore, these phrases can never be objectives and primary objective of
Hong Kong financial regulators. Objectives are status that financial regulators hope for, enhancing
confidence is an objective description that financial regulators hope for.
11 The regulator objectives of the SFC includes: Topic 1
I. Consumer rights protection
II. Minimize crime and misconduct within the securities and futures industry.
III. Promote public's understanding of the securities and futures industry.
IV. Provide advice on the enforcement of economic policies to the government
A I, III, IV Chapter 1
B II, III, IV Section 4
C II, III QID 60
D I, IV Ans C Hot
(b) promote public’s understanding of the industry including its operation and functioning;
(d) minimise crime and misconduct in the market.

12 Under the SFO, which of the following are objectives of the SFO Topic 1
I. Promote understanding by the public of financial services including the operation and functioning of
the industry.
II. Ensure the regulatory standards are identical to international standards.
III. Check and approve new financial products.
IV. Minimize crime and misconduct within the industry.
A I, II, IV Chapter 1
B II, III, IV Section 4
C I, IV QID 59
D I, II, III Ans C Hot
(b) promote public's understanding of the industry including its operation and functioning;
(d) minimise crime and misconduct in the market
13 The objectives of the SFO are to provide a regulatory framework with which of the following Topic 1
characteristics?
I. Promotes a fair, orderly and transparent market.
II. Is flexible enough to cope with new products and other innovations, and further advances in
technological infrastructure.
III. Is administered by a regulator with sufficient powers and discretion whose operations are transparent
and who is accountable to the stakeholders through a system of adequate checks and balance.
IV. Is a system that can satisfy PRC mainland legal standards, being compatible with PRC mainland laws
and practices and meet local needs.
B II, III Section 4
C II, III, IV QID 171
D I, II, III, IV Ans A Hot
Exp The objectives of the SFO are to provide a regulatory framework which:
(a) promotes a fair, orderly and transparent market;
(b) is flexible enough to cope with new products and other innovations, and further advances in
technological infrastructure;
(c) is administered by a regulator with sufficient powers and discretion whose operations are transparent
and who is accountable to the stakeholders through a system of adequate
checks and balances.
14 Which one of these are regulatory objectives of the SFC? Topic 1
I. Evaluate market performance regularly
II. Provide protection to the investing public
III. Set remuneration of Directors and Senior Management of big companies
IV. Reduce systemic risks in the industry
A II, III Chapter 1
B IV, III Section 4
C II, IV QID 1728
D I, III Ans C Hot
Exp These are 2 of the objectives of the SFC in relation to the securities and futures industry, as stated in s. 4
of the SFO.

15 Which of the following is an accurate description of Hong Kong's financial regulatory structure? Topic 1
A Led by the Financial Secretary, the Financial Secretary has effective overall authority over the regulatory Chapter 1
bodies.
B The regulatory body has a system of checks and balances to ensure the interests of the stakeholders are Section 4
not violated.
C The regulatory body will hire government employees as short-term contract staff to meet regulatory needs. QID 172
D The regulatory body has full discretion in determining all administrative matters. Ans B Hot
Exp The broad points stated by the Securities Review Committee under Ian Hay Davison were
the need for:
(e) checks and balances on the system, with the exchanges being supervised by a
commission independent of the Government, with the Government only to intervene if
and when the Commission failed to regulate properly
16 Which of the following is a regulatory objective of the SFC? Topic 1
A Provide protection to the controlling shareholders Chapter 1
B Minimize crime and misconduct in the securities and futures industries Section 4
C Enhance the competitiveness of the financial industry of Hong Kong QID 61
D Maintain the profitability of the financial industry of Hong Kong Ans B Hot
(d) minimise crime and misconduct in the market.
17 Which of the following are regulatory objectives of the SFC? Topic 1
I. To maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the
securities industry
II. To provide protection for majority shareholder
III. To minimize crime and misconduct in the securities industry
IV. To reduce systemic risks in the securities industry
D I, II, III, IV Ans C Hot
Exp The regulatory objectives of the SFC is to provide protection to the investing public rather than to the
majority shareholder.
18 The existence of the financial markets in Hong Kong can satisfy which of the following demands? Topic 1
I. Meet demands for investment, capitalization and risk management.
II. Meet demands for employment
III. Provide an avenue for price discovery
IV. Provide liquidity for investments
A I, II, IV Chapter 1
B I, III, IV Section 4
C II, III QID 1
D II, III, IV Ans B Hot
Exp The demands for employment is not a function satisfied by financial market alone, thus is not a primary
reason for the existence of the financial markets in Hong Kong.

19 Which of the following correctly states the relationship between the government and the SFC? Topic 1
A The government is responsible for supervising the exchanges and clearing houses. The SFC is Chapter 1
responsible for supervising intermediaries.
B The government is responsible for making subsidiary legislations of the SFO and the SFC is responsible Section 5
for enforcing such subsidiary legislations.
C The government is responsible for regulating and supervising the free operation of its financial markets. QID 2322
The SFC is responsible for regulating market intermediaries and their conduct.
D The SFC is a government body and a part of the civil servant system, it is responsible for regulating Ans C Hot
market intermediaries and their conduct.
Exp Under the Basic Law of Hong Kong Special Administrative Region of the People’s Republic of China
(“Basic Law”) (see Note below), the Hong Kong Government is to provide an appropriate economic and
legal environment for Hong Kong as an international financial centre, and to regulate and supervise the
free operation of its financial markets. Under the SFO, the SFC is the regulator of market intermediaries
and their conduct and the supervisor of the recognised exchanges and recognised clearing houses in all
aspects of their operation, in each case with specified powers of enforcement.
20 Which of the following statements about the Securities and Futures Ordinance (SFO) are correct? Topic 1
I. The SFO lays down the overall licensing parameters which govern Corporate Finance activity.
II. The SFO provides for insider dealing to be dealt with under both civil or criminal routes.
III. The SFO provides detailed requirements for the management of takeovers and mergers.
IV. The SFO provides the basis for the recognition of Exchange Companies.
Exp <<The Code on Takeovers and Mergers>> issued by the Securities and Futures Commission(SFC)
provides detailed requirements for the management of takeovers and mergers.
21 The major functions of the SFC include﹕ Topic 1
I. Supervise all of the activities conducted by Registered Institution
II. Promote, encourage and enforce the proper conduct, competence and integrity of persons carrying on
regulated activities
III. Promote, encourage and enforce internal control and risk management systems by persons carrying on
regulated activities, including registered institutions in the case of any regulated activities they conduct.
IV. Maintain market liquidity in the securities and futures markets.
A I, IV Chapter 1
B II, III Section 5
C I, II, III QID 62
Exp The functions and powers of the SFC are wide and are set out in s. 5, SFO. The principal functions are to:
(c) promote, encourage and enforce the proper conduct, competence and integrity of persons carrying on
regulated activities;
(g) promote, encourage and enforce internal control and risk management systems by persons carrying
on regulated activities, including registered institutions in the case of any regulated activities they
conduct.

22 Which of the following are functions and duties of the SFC? Topic 1
I. Supervise the securities and futures markets in Hong Kong
II. Regulate the securities and futures industries
III. Provide professional assistance to the government
IV. Supervise all settlement banks in Hong Kong
A I, II Chapter 1
B II, III Section 5
C I, II, IV QID 63
D I, II, III Ans A Hot
Exp The functions and powers of the SFC are wide and are set out in s. 5, SFO. The principal functions are to:
(b) supervise, monitor and regulate the activities of:
(i) recognised exchange, clearing houses, exchange controllers and investor compensation companies or
persons carrying on regulated activities; and
(ii) registered institutions that are regulated or to be regulated by the SFC under any relevant provisions.
23 Which of the following entity is responsible for monitoring the exchanges and clearing houses in Hong Topic 1
Kong?
A The Board of Directors of the HKEX Chapter 1
B The Financial Secretary Section 5
C The Chief Executive of the HKSAR QID 104
D SFC Ans D Hot
Exp The SFC supervises and monitors the activities of HKEX, the exchange companies and the clearing
houses, approves their rules and amendments to the rules, approves the fees they charge, and
administers and enforces the applicable legislation. It also carries out regular reviews of these activities.
24 The SFC﹕ Topic 1
I. Reports to the government
II. Was formed under the Securities and Futures Ordinance
III. Is not responsible for licensing of intermediaries
IV. Is a part of the government
A I, II Chapter 1
B I, II, III Section 5
C II, IV QID 57
Exp The SFC was created by law under the Securities and Futures Commission Ordinance (now repealed and
subsumed in the SFO). It is independent, meaning that it is not part of the
Government machinery of the Civil Service or the ministerial system. Nevertheless, it reports to and is
accountable to the Government as described in section 2 above.
25 What is the role of the Hong Kong Government with regards to Hong Kong's development as a financial Topic 1
centre?
A Promote and encourage awareness of systemic risk in the financial industry Chapter 1
B Coordinate and encourage various bodies to keep an eye particularly on the elements which affect Section 5
systemic risk
C Assist various bodies in identifying and managing systemic risk QID 1709
D Provide protection for members of the public by eliminating systemic risk Ans B Hot
Exp The role of the Hong Kong Government with regards to Hong Kong's development as a financial centre is
to coordinate and encourage various bodies to keep an eye particularly on the elements which affect
systemic risk.
26 Which of the following is the actual operator of the equity and derivate exchanges and clearing house? Topic 1
A HKEX Chapter 1
B SFC Section 7
C HKMA QID 1710
D SEHK Ans A Hot
Exp The HKEX is the operator of the securities and futures exchanges and the related clearing houses. It has a
primary responsibility for developing and maintaining the efficiency, integrity and transparency of the
market, in relation to both its financial soundness and the provision of a platform for the listing of suitable
companies.
27 What's the features of the regulation system of securities and futures in Hong Kong? Topic 1
A It has Mainland China's characteristics and connected globally. Chapter 1
B It's flexible and compatible with the development of financial markets. Section 7
C It features high transparency and low risks. QID 2350
D Only the SFC is responsible for all frontline supervision. Ans B Hot
Exp The regulation system of securities and futures in Hong Kong is flexible and compatible with the
development of the financial market. Although the regulation system of securities and futures in Hong
Kong has lots of businesses with China, it's mainly globally connected. There is high market transparency
in Hong Kong. However, there is no relatively low risks. The frontline supervisors of the securities
industry in Hong Kong include SFC and Hong Kong Monetary Authority.
28 Which of the following division of the SFC is responsible for regulating corporate finance activities? Topic 1
A Enforcement Division Chapter 1
B Intermediaries Division Section 8
C Corporate Finance Division QID 1711
D Supervision of Markets Division Ans C Hot
Exp The SFC has a Corporate Finance Division, which is the major division regulating corporate finance
activities.
29 Which of the following Committees, tribunals and panels manages the administration of Codes on Topic 1
Takeovers and Mergers and Share Buy-backs?
A Takeovers and Mergers Panel Chapter 1
B Corporate Finance Division Section 10
C Enforcement Division QID 72
D Accounting and Operation Division Ans B Hot
Exp Corporate Finance Division:

(a) administers The Codes on Takeovers and Mergers and Share Buy-backs and regulates takeovers,
mergers and share buy-backs of applicable companies

30 Which of the following are functions of the Corporate Finance Division of the SFC? Topic 1
I. Administer the Codes on Takeovers and Mergers and Share Buy-backs and regulates takeovers, mergers
and share buy- backs of applicable companies
II. Provide advice on corporate restructuring to listed company in
Hong Kong
III. Supervise the listing-related activities of The Stock Exchange
of Hong Kong Limited (“SEHK”)
IV. Provide advice on takeover activities to minority shareholders
A I, III Chapter 1
B I, IV Section 10
C I, III, IV QID 73
D I, II, III Ans A Hot

mergers and share buy-backs of applicable companies;
(b) supervises the listing-related activities of The Stock Exchange of Hong Kong Limited (“SEHK”).
31 Which department/division/panel/tribunal is responsible for the administration of Codes on Takeovers and Topic 1
Mergers and Share Buy- backs?
A Takeovers and Mergers Panel Chapter 1
B Corporate Finance Division Section 10
C Enforcement Division QID 74
D Accounting Division Ans B Hot

mergers and share buy-backs of applicable companies.
32 One of the divisions of the SFC is the Corporate Finance Division. Which of the following functions are not Topic 1
a function of the Corporate Finance Division?
I. Monitors the markets to detect market misconduct.
II. Supervises the SEHK's listing-related functions and responsibilities.
III. Hear disciplinary matters in the first instance.
IV. Reviews prospectuses of unlisted issuers for authorization and grants exemptions for prospectuses
issued by listed and unlisted issuers.
A I, IV Chapter 1
B III, IV Section 10
C I, III QID 1729
D II, III Ans C Hot
Exp The function of the Corporate Finance Division of the SFC includes:
1. Supervises the SEHK's listing-related functions and responsibilities.
2. Reviews prospectuses of unlisted issuers for authorization and grants exemptions for prospectuses
issued by listed and unlisted issuers.

33 Which of the following are not the duties that the Corporate Finance Division of the SFC performs? Topic 1
I. Authorize but do not administer the Takeovers and Mergers Code and Share Repurchase Code.
II. Review Licensing Application for Corporate Finance Advisers.
III. Promotes fair and equal treatment of majority share holder.
IV. Review Listing Rules and GEM Listing Rules
Exp The duties that the Corporate Finance Division of the SFC includes:
I. Administer the Takeovers and Mergers Code and Share Repurchase Code. Regulate takeovers, mergers
and share buy-backs of applicable companies.
II. Supervises the SEHK's listing related functions and responsibilities.
III. Review and make suggestions to Main Board Listing Rules and GEM Listing Rules
IV. Reviews prospectuses and grant exemptions
V. Administers the dual filing regime
34 Which of the following are the roles that the SFC's Corporate Finance Division performs? Topic 1
I. Oversees the Stock Exchange's listing-related functions and responsibilities
II. Administers securities legislation relating to listed companies
III. Facilitates the development of effective and efficient capital markets in the PRC
IV. Promotes fair and equal treatment of all share holders
D I, II, III, IV Ans B Hot
Exp SFC belongs to Hong Kong rather than China.

35 The SFC and the various codes it has issued place importance on the responsibility of which of the Topic 1
following entities to set
appropriate standards of conduct?
A Compliance Department of Licensed Corporations Chapter 1
B Licensing Department of the SFC Section 12
C Senior Management of Licensed Corporations QID 77
D Enforcement Division of the SFC Ans B Hot
Exp Licensing Department:

(b) issues codes and guidelines concerning the competence and suitability of corporations and
individuals to remain licensed.
36 Which department/division of the SFC licenses asset management corporation and their staff and Topic 1
approves responsible officers?
A Licensing Department Chapter 1
B Intermediaries Supervision Department Section 12
C Asset Management Department QID 78
D Policy, China and Investment Products (“PCIP”) Ans A Hot
Exp Licensing Department:

(a) licenses corporations and individuals seeking to conduct business in Hong Kong in the regulated
activities for which a licence is required under the SFO.


English HKSI LE Paper 5 Pass Paper Question Bank (QB)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

English HKSI LE Paper 5 Pass Paper Question Bank (QB)

Uploaded by

Copyright:

Available Formats

2CEXAM Mock Question

Licensing Examination Paper 5

C I, III, IV QID 1720

D I, II, III, IV Ans D Hot

C II, III QID 1702

D III, IV Ans D Hot

A I, II, III Chapter 1

C I, III, IV QID 2361

D II, III, IV Ans A Hot

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.1

A Be a registered trader in the SEHK. Chapter 1

B Be licensed by or registered with the SFC as a corporate finance adviser. Section 2

B I, II, III Section 2

C II, III, IV QID 1706

D I, II, IV Ans C Hot

C Type 6 QID 1705

D Type 9 Ans C Hot

Exp Corporate Finance is Type 6 Regulated Activity under the SFO.

B Companies Ordinance (CO) Section 3

C Listing Rules of the Stock Exchange QID 1704

D Takeovers and Mergers Code Ans A Hot

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.2

B Companies Ordinance (CO) Section 3

C Listing Rules of the Stock Exchange QID 1703

D Takeovers and Mergers Code Ans A Hot

D I, II, IV Ans A Hot

B Encourage the development of new products Section 4

C Operate profitable exchanges in Hong Kong QID 6

D Reduce trading hours Ans A Hot

B II, III, IV Section 4

C II, III QID 60

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.3

B II, III, IV Section 4

D I, II, III Ans C Hot

B II, III Section 4

C II, III, IV QID 171

D I, II, III, IV Ans A Hot

B IV, III Section 4

C II, IV QID 1728

D I, III Ans C Hot

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.4

A Provide protection to the controlling shareholders Chapter 1

C Enhance the competitiveness of the financial industry of Hong Kong QID 61

C I, III, IV QID 1707

D I, II, III, IV Ans C Hot

C II, III QID 1

D II, III, IV Ans B Hot

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.5

C I, III, IV QID 1708

D II, III, IV Ans B Hot

B II, III Section 5

C I, II, III QID 62

D II, III, IV Ans B Hot

Website: www.2cexam.com Phone: 21109644 Wechat:hk2cexam P.6

B II, III Section 5

D I, II, III Ans A Hot

B The Financial Secretary Section 5

C The Chief Executive of the HKSAR QID 104

D SFC Ans D Hot

B I, II, III Section 5

D II, III, IV Ans A Hot

C HKMA QID 1710

D SEHK Ans A Hot

A It has Mainland China's characteristics and connected globally. Chapter 1