Free HKSI Paper 1 Mock Exam Questions with Answers (2026)
Practice with free HKSI Paper 1 mock exam questions covering all 9 chapters. Each question includes detailed explanations to help you understand the concepts and pass your exam.
Looking for HKSI Paper 1 practice questions? We've compiled sample questions from key chapters to help you prepare for the Fundamentals of Securities and Futures Regulation exam.
Not sure what the exam looks like? Read our HKSI Paper 1 Passing Score & Format guide first.
Each question includes the correct answer and a detailed explanation — exactly what you need to understand the concepts, not just memorise answers.
📝 About These Questions
- Questions cover Chapters 1-5 (representing ~65% of the actual exam)
- Format matches the real exam: 4 options, choose 1 correct answer
- Detailed explanations help you understand the underlying concepts
Chapter 1: Regulatory Overview of the Hong Kong Financial Industry
Question 1:
Which of the following does NOT fall under the SFC's regulatory objectives?
- A: Enhance public awareness and understanding of financial services, including how the industry operates and functions.
- B: Protect members of the investing public.
- C: Reduce crime, improper conduct, and misconduct within the industry.
- D: Ensure investors do not incur losses when dealing with an intermediary.
Show Answer & Explanation
Answer: D
The SFC's objectives include investor protection, promoting market and industry understanding, and reducing misconduct, but it does not guarantee that investors will avoid losses when investing through intermediaries. Investment risk is inherent in financial markets.
Chapter 2: Principles of Relevant Hong Kong Law and the Companies Ordinance
Question 2:
At common law, directors owe fiduciary duties to the company. In fulfilling this fiduciary relationship, they are required to:
I. Act with utmost good faith towards the company.
II. Act bona fide for the benefit of the company.
III. Exercise their powers for their proper purpose.
IV. Not allow any conflict of interest between their duties as directors and their personal interests.
- A: I, II, III
- B: II, III, IV
- C: I, II, IV
- D: I, II, III, IV
Show Answer & Explanation
Answer: D
Directors' fiduciary obligations at common law include all four duties: acting in good faith and for the company's benefit, using powers only for their proper purposes, and avoiding situations where personal interests conflict with their duties to the company.
Pssst.. ExamPrep.hk has instant feedback and explanations to help you easily digest and understand the logic and concept behind each question.
ExamPrep.hk's Instant Feedback and Explanation feature helps you understand the concepts better.
Chapter 3: Securities and Futures Ordinance ("SFO")
Question 3:
The Securities and Futures Commission (SFC) is investigating suspected insider dealing. Ms Jane Doe, a retail investor, is asked to provide information during the inquiry. Even though she is not suspected of insider trading, must she still give information to the SFC?
- A: No. Since Ms Jane Doe is a retail investor, she has no duty to help the SFC with its investigation.
- B: No. Because Ms Jane Doe is not involved in insider trading, she is not required to provide information to the SFC.
- C: Yes. Ms Jane Doe should provide information to support the investigation.
- D: Yes. However, Ms Jane Doe only needs to provide information and does not have to attend a meeting with the SFC against her will.
Show Answer & Explanation
Answer: C
Under the SFC's statutory investigation powers, any person who is required to provide information must comply, even if they are not personally involved in the suspected misconduct. The SFC has broad powers to gather information during investigations.
ExamPrep.hk's Practice by Chapter feature helps you focus on specific chapters and track your performance.
Chapter 4: Licensing and Registration, and Subsidiary Legislation
Question 4:
For how long must records of orders and clients' instructions be retained?
- A: 1 Year
- B: 2 Years
- C: 3 Years
- D: 5 Years
Show Answer & Explanation
Answer: B
Regulatory record-keeping requirements generally require intermediaries to keep order and client instruction records for a minimum retention period of 2 years. This is a commonly tested topic in Chapter 4.
Chapter 5: Business Conduct and Client Relations
Question 5:
In preparing risk disclosure statements, which of the following risk items should be covered?
I. Risk of securities trading.
II. Risk of trading GEM stocks.
III. Risk of margin trading.
IV. Risk of trading Nasdaq stocks on the SEHK.
- A: I, II, III
- B: II, III
- C: I, II, IV
- D: I, II, III, IV
Show Answer & Explanation
Answer: A
Risk disclosures must address general securities trading risk, GEM-specific risk, and margin trading risk. Trading Nasdaq stocks is not conducted on the SEHK, so it is not a required disclosure item under Hong Kong regulations.
ExamPrep.hk's Performance by Chapter feature helps you track your performance and identify weak areas.
How to Use These Questions Effectively
💡 Study Tips
- 1. Don't just check answers — Read the explanations to understand the underlying principles.
- 2. Note the chapter weightings — Chapter 4 (Licensing) has the most questions (~22%), so prioritise it.
- 3. Identify patterns — Many questions test specific rules, timeframes, or regulatory requirements.
- 4. Practice under time pressure — In the real exam, you have ~1.5 minutes per question.
What to Study Next
Now that you've tried these sample questions, here's how to build a complete study plan:
- Read our complete HKSI Paper 1 Study Guide — includes a 3-week study plan and chapter breakdown
- Understand the Chapter Trap — learn why studying all 9 chapters equally is a mistake
- Register for your exam — step-by-step guide to booking your slot
Want More Practice Questions?
These 5 questions are just a sample. The actual HKSI Paper 1 exam has 60 questions covering all 9 chapters.
ExamPrep.hk offers 1,000+ HKSI Paper 1 practice questions with:
- Detailed explanations for every question
- Chapter-by-chapter practice mode
- Performance tracking by chapter
- Full mock exams under timed conditions
- AI-powered focus area recommendations
ExamPrep.hk's AI Focus Areas feature helps you focus your study time on your weakest areas.
Frequently Asked Questions
Ready to Put This Strategy Into Action? 💯
Join thousands of successful candidates who have passed their HKSI Paper 1 exam using our proven study methods.