Free Sample Question
Exchange Controller

Which ONE of the following does the Securities and Futures Commission recognise as Hong Kong’s Exchange Controller?

A
Stock Exchange of Hong Kong Limited
B
Hong Kong Exchanges and Clearing Limited
C
Hong Kong Monetary Authority
D
Registrar of Companies
Equity Law Remedies

Which ONE of the following CORRECTLY describes a remedy under equity law?

A
Specific performance aims to restore the parties to their original positions before a contract was agreed
B
Injunction is a court order prohibiting a certain act
C
Rectification forces someone to do something
D
Equitable rescission clarifies a contract when it is not well written
SFO

The Securities and Futures Ordinance was drafted to provide a regulatory framework which:

A
represents the most comprehensive system of regulation operating in any international financial market
B
is tailored to meet the local needs and circumstances of the Hong Kong financial markets
C
is administered by the Hong Kong government
D
is likely to increase the profitability of the Hong Kong financial markets
SMF

Charlie Chang has just used Sincere Securities to purchase shares in Bigco.  Charlie is introduced to GearCorp, which can offer Charlie finance for the continued holding of the shares.  Which ONE of the following would be appropriate for GearCorp’s licensing status?

A
No license is required as the shares have already been purchased
B
GearCorp can provide financing to Charlie if it holds a Type 9 (Asset Management) license
C
If GearCorp is an authorised financial institution, and Charlie is already a customer, no Type 8 (Securities Margin Financing) license is required
D
Finance can be provided if GearCorp holds a Type 4 (Advising on Securities) license
Share Registrars

Which ONE of the following statements is CORRECT regarding Share Registrars?

A
A Share Registrar maintains registers of holders of securities issued by its client company
B
A breach of the code may lead to the Securities and Futures Commission revoking or suspending the share registrar’s licence
C
Share Registrars are required to provide share registry services as imposed under the Securities and Futures Ordinance
D
Share Registrars are required to perform services for registered owners of securities diligently
Corporate Governance

Which ONE of the following would NOT be considered an effect of corporate governance deficiencies?

A
Insider dealing
B
A sell-off of corporate stock due to Board disagreements
C
Fraud carried out by two directors
D
Undervalued connected transactions
Merchant Trader

Under Hong Kong Futures Exchange rules, a Merchant Trader:

A
is the same as a Futures Commission Merchant
B
may act as an agent of an Exchange Participant
C
is not allowed to trade futures contracts
D
is entitled to trade in futures contracts and/or options contracts only on its own account, and only ancillary to its principal business or that of its holding company
Trustee/Custodian

A Hong Kong based bank, acting as a trustee/custodian, must be licensed under which ONE of the following Ordinances, to be acceptable to the SFC?

A
Securities and Futures Ordinance
B
Custodian Ordinance
C
Banking Ordinance
D
Trustee Ordinance
Cold Calling

Which ONE of the following is an investment manager NOT permitted to cold call?

A
Professional opera singer
B
Professional auditor
C
Practicing solicitor
D
Professional money lender