The Securities and Futures Intermediaries (SIFEX) exam has become the most common international exam in Hong Kong. It is divided into two parts. Part one involves the practical exam and Part two consists of the theory exam. The exam is held annually, bi-annually, or annually, with the schedule determined by the government.
One should know that all licensed brokers in Hong Kong have to undergo SIFEX licensing exams. This means that no individual can apply for a license until he or she has passed this exam. An individual doesn’t need to take the exam. Some financial institutions offer the exam, but only the following companies are accredited by the government: SCIBEX Limited, Citibank, ING Direct, FEIN Management, Greenfield, Commerce Bank, HSBC China Branch, Ltd., TMX Securities and Trading Limited, and Sunbeam Commercial Paper Company Limited.
The exam is designed to SFC type 1 knowledge in the field of international finance and securities exchange. It requires one to demonstrate a basic understanding of the business aspects related to finance and exchange. The examiners ask questions about one’s experience and education, including the number of hours worked and the types of firms involved. Based on this information, the examiners create a paper that outlines the different areas. Based on the paper, one is given a score.
On completion of the exam, one gets a certificate. After one becomes a licensed agent, one may open a new account and forward transactions through it. One also earns the right to operate a securities trading firm. However, it is not compulsory to operate such a firm. A person can be self-employed, which means he or she can work without supervision. The only other thing that needs to be ensured is that a person has a minimum of twenty thousand pounds in capital.
Various companies offer SFC type 1 exam papers online. However, to ensure a quality exam, one should consult a good online training company. One can consult the National Foundation for Credit Counseling website for details on the different exams that are offered. The website will also guide the user to find an accredited and reputed online training company. The website also offers free practice tests to assess the skills of the candidates.
Once the SFC license holder passes the exam successfully, he or she will be issued a certificate. It is then up to the individual to either work as a broker or begin trading as a stockbroker. In addition to earning money from the trading activity, the license holder is entitled to receive a commission. This amount of money has been fixed by the government and cannot be influenced by the license holder.
