All Practice Exams

100+ Free HKSI Paper 5 Practice Questions

Pass your HKSI Licensing Examination Paper 5 - Regulation of Corporate Finance exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

2026 Statistics

Key Facts: HKSI Paper 5 Exam

40 questions

HKSI Paper 5 is a 40-question multiple-choice examination

HKSI Institute - Licensing Examination overview

60 minutes

Time limit for the HKSI Paper 5 examination

HKSI Institute - Licensing Examination overview

70%

Pass mark for every paper of the HKSI Licensing Examination

HKSI Institute - Licensing Examination overview

Type 6

Paper 5 supports licensing for advising on corporate finance under the SFO

HKSI Institute - Licensing Examination overview

HKD1,930

Examination fee at the Hong Kong Examination Centre or by remote examination

HKSI Institute - Licensing Examination overview

4 topics

Regulatory structure, SEHK listing, takeovers and buy-backs, and miscellaneous

HKSI Institute - Paper 5 syllabus

Monthly

Paper 5 is offered on a monthly examination schedule

HKSI Institute - Licensing Examination overview

100

Free original practice questions provided here

OpenExamPrep

HKSI Paper 5, Regulation of Corporate Finance, is a local regulatory framework paper of the Hong Kong Securities and Investment Institute Licensing Examination, required for the SFC Type 6 regulated activity of advising on corporate finance. It has 40 multiple-choice questions, a 60-minute time limit and a 70% pass mark, and is offered monthly at a fee of HKD1,930 in Hong Kong or HKD2,350 at global centres. The syllabus has four topics: the legal and regulatory structure and code of conduct; listing on the SEHK; takeovers, mergers and share buy-backs; and miscellaneous corporate finance matters. Core subject matter includes the SFO and Type 6 regime, the SEHK Listing Rules, the duties of sponsors and compliance advisers, the Takeovers Code and the Codes on Share Buy-backs, and conduct and conflict-of-interest requirements. This 100-question bank provides original practice across all four topics with full explanations.

Sample HKSI Paper 5 Practice Questions

Try these sample questions to test your HKSI Paper 5 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Securities and Futures Ordinance (SFO), which regulated activity covers a firm that advises a listed company on complying with the Takeovers Code and the Listing Rules in connection with a takeover offer?
A.Type 1 - dealing in securities
B.Type 4 - advising on securities
C.Type 6 - advising on corporate finance
D.Type 9 - asset management
Explanation: Type 6 regulated activity is advising on corporate finance. It covers advice on compliance with the Listing Rules and the Takeovers Code, advice on offers, and advice on the listing or arrangement of share capital, which is exactly the work described here.
2Which statutory body is the principal regulator of the securities and futures markets in Hong Kong and administers the Securities and Futures Ordinance?
A.The Securities and Futures Commission (SFC)
B.The Hong Kong Monetary Authority (HKMA)
C.The Stock Exchange of Hong Kong (SEHK)
D.The Companies Registry
Explanation: The Securities and Futures Commission (SFC) is the independent statutory body that regulates Hong Kong's securities and futures markets and administers the Securities and Futures Ordinance, including the licensing of intermediaries.
3The Codes on Takeovers and Mergers and Share Buy-backs are administered and enforced by which body?
A.The Stock Exchange of Hong Kong
B.The Securities and Futures Commission
C.The Financial Reporting Council
D.The Hong Kong Monetary Authority
Explanation: The Codes on Takeovers and Mergers and Share Buy-backs are non-statutory codes administered by the SFC, in practice through the Executive (the Corporate Finance Division of the SFC) with oversight by the Takeovers and Mergers Panel.
4Which of the following best describes the legal status of the Codes on Takeovers and Mergers and Share Buy-backs?
A.They are statutory provisions of the Securities and Futures Ordinance with criminal penalties for breach
B.They are non-statutory codes that do not have the force of law but breach can lead to sanctions
C.They are subsidiary legislation made by the Stock Exchange
D.They are contractual terms only binding on SFC-licensed corporations
Explanation: The Codes are non-statutory and do not have the force of law. However, the SFC can impose disciplinary sanctions, including public censure and 'cold-shoulder' orders that deny access to the securities markets, on those who breach them.
5A corporate finance adviser learns price-sensitive information about a client's proposed takeover and personally buys shares in the target before the announcement. Which conduct concern does this most directly raise?
A.Best execution
B.Insider dealing and misuse of inside information
C.Anti-money laundering customer due diligence
D.Client asset segregation
Explanation: Trading on non-public price-sensitive information about a takeover is insider dealing, which is prohibited under the market misconduct provisions of the Securities and Futures Ordinance and breaches the adviser's conduct obligations.
6Which ordinance now contains the prospectus provisions governing offers of shares and debentures to the public in Hong Kong following the commencement of the new Companies Ordinance?
A.The Securities and Futures Ordinance
B.The Companies (Winding Up and Miscellaneous Provisions) Ordinance
C.The Banking Ordinance
D.The Stamp Duty Ordinance
Explanation: When the new Companies Ordinance (Cap. 622) commenced, the prospectus provisions were retained in the renamed Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), which now governs prospectuses for public offers.
7What is the main purpose of the dual-filing regime under which a listing applicant files its application both with the SEHK and the SFC?
A.To allow the SFC to set the IPO offer price
B.To give the SFC statutory oversight of disclosure in listing documents and the power to object to listings
C.To replace the role of the sponsor
D.To exempt the issuer from the Listing Rules
Explanation: Under the dual-filing regime the SFC receives listing application materials at the same time as the SEHK, giving the SFC statutory oversight of disclosure and the power to object to a listing if a listing document is false or misleading.
8Under the General Principles of the Code on Takeovers and Mergers, all shareholders of the same class of the offeree company must be:
A.Given board seats on the offeror
B.Treated equally and afforded equivalent treatment
C.Paid in cash only
D.Offered a price set by the Stock Exchange
Explanation: A core General Principle of the Takeovers Code is that all shareholders of the same class of the offeree company must be treated equally and afforded equivalent treatment, preventing selective deals that favour some shareholders over others.
9A licensed corporation acts for both the offeror and the offeree company in the same takeover. Under the Code of Conduct and Takeovers Code conflict requirements, the firm should normally:
A.Proceed, as long as it discloses the fee to the SFC
B.Decline to act for both sides because of the inherent conflict of interest, or put in place effective arrangements to manage it
C.Act for whichever party pays the higher fee
D.Ignore the conflict if both clients are listed companies
Explanation: Acting for opposing parties in the same transaction creates an inherent conflict of interest. A firm should decline one engagement unless effective measures, such as information barriers and independent teams, can properly manage the conflict and clients consent.
10Which body operates the Main Board and GEM and administers the Listing Rules in Hong Kong?
A.The Securities and Futures Commission
B.The Stock Exchange of Hong Kong Limited (SEHK)
C.The Companies Registry
D.The Hong Kong Monetary Authority
Explanation: The Stock Exchange of Hong Kong Limited (SEHK), a wholly owned subsidiary of HKEX, operates the Main Board and GEM and administers the Rules Governing the Listing of Securities (the Listing Rules).

About the HKSI Paper 5 Exam

HKSI Licensing Examination Paper 5, Regulation of Corporate Finance, is one of the local regulatory framework papers in the Licensing Examination for Securities and Futures Intermediaries administered by the Hong Kong Securities and Investment Institute. It is required as part of the Securities and Futures Commission competence requirements for individuals, in particular Responsible Officers, seeking to carry on Type 6 regulated activity, advising on corporate finance. The paper tests the regulatory framework that governs corporate finance advisory work in Hong Kong: the Securities and Futures Ordinance and the Type 6 regime, the SEHK Listing Rules and the roles of sponsors and compliance advisers, the Codes on Takeovers and Mergers and Share Buy-backs, and conduct, conflicts and disclosure requirements. The examination is computer-based with 40 multiple-choice questions in 60 minutes and a 70% pass mark.

Assessment

40 multiple-choice questions covering four syllabus topics: the legal and regulatory structure and code of conduct; listing on the SEHK; takeovers, mergers and share buy-backs; and miscellaneous corporate finance matters.

Time Limit

60 minutes.

Passing Score

70%, the standard pass mark for every paper of the Licensing Examination.

Exam Fee

HKD1,930 per attempt at the Hong Kong Examination Centre or by remote examination; HKD2,350 at Global Examination Centres. (Hong Kong Securities and Investment Institute (HKSI Institute))

HKSI Paper 5 Exam Content Outline

22%

Legal and regulatory structure and code of conduct

The regulatory roles of the SFC, HKEX and SEHK; the Securities and Futures Ordinance and the Type 6 regulated activity of advising on corporate finance; the Companies Ordinance and the Companies (Winding Up and Miscellaneous Provisions) Ordinance; the Code of Conduct and conflict-of-interest requirements; corporate governance; and the character of the Hong Kong IPO market.

33%

Listing on the SEHK

Roles and responsibilities of the SEHK and listed issuers; the duties of sponsors and compliance advisers and the dual-filing regime; methods of listing, listing procedures and listing criteria for Main Board and GEM; prospectus content and vetting; underwriting and syndication in an IPO; continuing obligations and disclosure of inside information; and trading halt, suspension, cancellation and disciplinary proceedings.

30%

Takeovers, mergers and share buy-backs

The purpose and general principles of the Codes on Takeovers and Mergers and Share Buy-backs; mandatory and voluntary offers and the 30% mandatory offer trigger; the role of the Takeovers Executive and the Takeovers and Mergers Panel; independent board committees and independent financial advisers; schemes of arrangement; and on-market and off-market share buy-backs.

15%

Miscellaneous corporate finance matters

Convertible bonds; rights issues and open offers and the pre-emption and disclosure rules that apply to them; share options and share option schemes under the Listing Rules; capital reductions and variations of capital; and related corporate finance instruments and transactions.

How to Pass the HKSI Paper 5 Exam

What You Need to Know

  • Passing score: 70%, the standard pass mark for every paper of the Licensing Examination.
  • Assessment: 40 multiple-choice questions covering four syllabus topics: the legal and regulatory structure and code of conduct; listing on the SEHK; takeovers, mergers and share buy-backs; and miscellaneous corporate finance matters.
  • Time limit: 60 minutes.
  • Exam fee: HKD1,930 per attempt at the Hong Kong Examination Centre or by remote examination; HKD2,350 at Global Examination Centres.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

HKSI Paper 5 Study Tips from Top Performers

1Master the 30% mandatory general offer trigger and the related creeper provisions in the Takeovers Code; these rules are tested frequently and the exact thresholds matter.
2Learn the precise duties of sponsors and compliance advisers under the Listing Rules and the dual-filing regime, because Paper 5 often asks who is responsible for what during an IPO.
3Understand the boundaries of the Type 6 regulated activity and which corporate finance work falls inside or outside advising on corporate finance under the Securities and Futures Ordinance.
4Compare general offers, schemes of arrangement and on-market versus off-market share buy-backs side by side, since distractors often swap the mechanics of one for another.
5Memorise the headline continuing-obligation rules, including disclosure of inside information and notifiable and connected transaction categories under the Listing Rules.
6Practise reading questions carefully for code references: the Takeovers Code, the Share Buy-backs Code, the Listing Rules and the Code of Conduct all apply to different situations.

Frequently Asked Questions

How many questions are on HKSI Paper 5 and how long is it?

HKSI Paper 5, Regulation of Corporate Finance, has 40 multiple-choice questions and a time limit of 60 minutes. It is a computer-based examination.

What is the pass mark for HKSI Paper 5?

The pass mark is 70%, which is the standard pass mark across every paper of the HKSI Licensing Examination for Securities and Futures Intermediaries.

Which SFC regulated activity does Paper 5 relate to?

Paper 5 is a local regulatory framework paper for Type 6 regulated activity, advising on corporate finance. It is required in particular for Responsible Officers carrying on Type 6 activity under the SFC competence requirements.

How much does HKSI Paper 5 cost?

The examination fee is HKD1,930 per attempt at the Hong Kong Examination Centre or by remote examination, and HKD2,350 at Global Examination Centres. Fees are set by the HKSI Institute and may change.

What topics does Paper 5 cover?

The syllabus has four topics: the legal and regulatory structure and code of conduct; listing on the SEHK; takeovers, mergers and share buy-backs; and miscellaneous corporate finance matters such as convertible bonds, rights issues and share options.

Are these official HKSI Institute questions?

No. These are original OpenExamPrep practice questions modelled on the published Paper 5 syllabus and the SFC and HKEX rule framework. The HKSI Institute publishes its own study manual and syllabus separately.