Sales representatives are persons that belong to an Association Member (a company that is a financial instruments business operator including securities companies, banks, etc., which is an Association Member; JSDA’s member firm), and engage in financial instruments business including solicitation of financial instruments, etc. to customers.
From the perspective of investor protection, sales representatives are required to have expert knowledge related to financial instruments; comply with laws, regulations and various rules; and to conduct fair and sound transactions.
To respond to this requirement, JSDA has established the sales representative qualification exam system to ensure suitable quality of sales representatives, and grants sales representative qualification to those who pass the exam.
To become a sales representative, a person must join a financial instruments business operator, etc., and register the name, etc. with the government (Financial Services Agency) under the Financial Instruments and Exchange Act.
Unless this registration procedure is completed, a person cannot act as a “sales representative.”
Having a sales representative qualification is not enough for a person to act as a “sales representative.”
As the sales representative performs duties for the financial instruments business operator he/she belongs to, his/her duties will create responsibilities not only for the individual sales representative, but also for the financial instrument business operator, etc. he/she belongs to. Therefore, only a person who is nationally registered as a sales representative can work as a sales representative. JSDA is commissioned by the government for sales representative registration, and conducts sales representative registration administration for the Association Members.
Sales representative registration system has provisions for disqualification, and its aim is to protect the investors by eliminating persons who are not suitable as sales representatives, including by cancellation of registration of sales representatives who violate laws and regulations, etc.
Persons who obtain a sales representative qualification and have sales representative registration can act as a sales representative. On the other hand, sale representatives are always required to have up-to-date expertise related to financial instruments; comply with laws, regulations and various rules; and to conduct fair and sound transactions.
To secure investor trust in sales representatives, and to further improve the quality of sales representatives, JSDA has established a system for sales representative qualification renewal training. Based on this system, sales representatives must attend periodic sales representative qualification renewal training within a certain period.
[Self-regulatory Rules related to Sales Representative Qualification]
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