HKSI LE Paper 1 Cheat Sheet

Use the tables for a quick pre-exam check.

Regulatory actor map

Status and authority checklist

Client-conduct sequence

    flowchart LR
	  A[Identify actor and service] --> B[Classify client and gather facts]
	  B --> C[Apply suitability and conduct duties]
	  C --> D[Disclose material terms and conflicts]
	  D --> E[Execute through authorized controls]
	  E --> F[Create and retain evidence]

The exact sequence depends on the service and client. Treat an answer carefully if it skips authority, material client facts, a required disclosure, or evidence of the decision.

Public-capital question map

Market-misconduct decision map

    flowchart LR
	  A[Identify information or trading conduct] --> B[Classify the alleged misconduct]
	  B --> C[Test knowledge, intent, transaction, or market-effect facts]
	  C --> D[Choose the correct civil, criminal, disciplinary, or exchange route]
	  D --> E[Match the supported order, penalty, remedy, or control response]

Precise thresholds, forms, deadlines, and rule wording can change. Use the date and authority supplied in the question and verify current details through the official resources .

Read every scenario through three questions

1. Who is acting? SFC, HKMA, HKEX, licensed corporation, registered institution, representative, responsible officer, executive officer, issuer, intermediary, or client?
2. What stage has been reached? Application, approval, disclosure, transaction, record creation, supervision, investigation, discipline, review, or enforcement?
3. Which fact controls? Regulated activity, status, authority, client classification, document, timing, knowledge, intent, control failure, or market effect?

Topics 1-3: regulatory and legal foundation

• Separate the SFC’s statutory role, the HKMA’s supervisory role for authorized institutions, and HKEX, exchange, and clearing functions.
• Identify the legal source before applying a duty: common law, contract, company law, the SFO, subsidiary legislation, a code, or exchange rules.
• Use the SFO structure to locate the issue: offers, OFCs, licensing, capital and client assets, conduct, investigation, discipline, intervention, review, compensation, disclosure, or misconduct.
• Keep a regulator’s objective, power, process, and remedy separate.

Common trap: assigning a valid power or duty to the wrong institution.

Topics 4-6: licensing, conduct, and operations

• Distinguish licensed corporations, registered institutions, licensed representatives, responsible officers, relevant individuals, and executive officers.
• Identify the regulated activity and whether the facts concern licensing, registration, accreditation, approval, exemption, or an ongoing condition.
• Conduct questions often turn on client information, suitability, disclosure, conflicts, agreements, communications, complaints, and records.
• Operations questions often turn on segregation, custody, reconciliation, authorization, audit trail, escalation, and evidence that a control actually operated.

Common trap: treating a policy statement as proof that the required control was performed.

Topics 7-8: exchanges and public capital

• Separate exchange participation, trading, clearing, settlement, custody, and post-trade responsibility.
• In capital-raising scenarios, identify the instrument, offer route, audience, issuer, intermediary, disclosure document, approval or authorization step, and continuing obligation.
• Do not assume that listing approval, SFC authorization, Companies Ordinance compliance, and investor suitability are interchangeable.

Common trap: choosing a generally relevant disclosure when the scenario asks for a specific approval, document, or responsible party.

Topic 9: market misconduct and improper trading

• Classify the conduct before choosing a consequence: insider dealing, false trading, price rigging, stock-market manipulation, disclosure of false or misleading information, fraud, or another offence.
• Distinguish information, knowledge, intent, transaction, market appearance, inducement, and price or volume effects.
• Keep investigation, Market Misconduct Tribunal proceedings, criminal prosecution, discipline, civil remedies, and exchange action separate.

Common trap: recognizing suspicious conduct but selecting the wrong legal route or required mental element.

Final review sequence

1. Complete one unseen mixed set under time.
2. Classify each miss by topic, actor, and process stage.
3. Review the controlling distinction, not only the correct letter.
4. Drill the two weakest topics with new questions.
5. Verify current terminology and rule details in official sources.
6. Return to a mixed set and confirm that the same decision error no longer repeats.

Put the review into practice