I refer to the articles 'Tough broker exam takes its toll' and 'SFC empire-building burns broker hopefuls' that appeared in the business sections of May 17 and May 18, respectively.
The Securities and Futures Commission licensing regime is established to ensure that only fit and proper persons can enter the securities and futures industry. Hong Kong is no different from all major jurisdictions in that persons wishing to serve as intermediaries are subject to fulfilling high standards of entry criteria.
Since they perform important functions and may deal with client money and assets, they must understand the relevant securities regulation and practices. Examination is an objective and transparent threshold and benchmark.
It should be noted that other professions also have entry criteria and qualification exams.
The licensing exam of the Hong Kong Securities Institute (HKSI) has been developed as an objective assessment for the securities industry. Before its launch last June, the exam underwent a vigorous development process to ensure that it accords with international standards.
The SFC and its Academic and Accreditation Advisory Committee (AAAC) are aware of the pass rates. To aid candidates, the HKSI has published exam guides and sample questions, and has conducted revision workshops.