A sales representative is a person who belongs to an Association Member (a company that is a financial instruments business operator including securities companies, banks, etc., and that is JSDA member firm) and who engages in the financial instruments business such as solicitations to customers for financial instruments, etc.
From the perspective of investor protection, sales representatives are required to have expert knowledge of financial instruments; to comply with laws, regulations and various rules; and to conduct fair and sound transactions.
To meet these requirements, the JSDA has established the sales representative qualification exam system to ensure the suitability of sales representatives and to grant them a qualification when they pass the exam.
To become a sales representative, a person must join a financial instruments business operator, etc., and register their name, etc. with the government (Financial Services Agency) under the Financial Instruments and Exchange Act. Unless this registration procedure is completed, a person is not allowed to act as a “sales representative.”
To be registered as a sales representative of an Association Member of the JSDA, a person must have qualified as a “sales representative.”
Currently, the sales representative qualification is divided into six categories corresponding to the type of business, etc. that can be handled. To obtain the sales representative qualification, an applicant must take and pass the sales representative qualification exam.
Having a sales representative qualification is not enough for a person to act as a “sales representative.”
As a sales representative performs duties for the financial instruments business operator that 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. Therefore, only a person who is nationally registered as a sales representative can work as a sales representative. The JSDA has been entrusted with sales representative registration by the government, and it conducts sales representative registration administration for Association Members.
The sales representative registration system has provisions for disqualification, and its aim is to protect investors by removing anyone who is not suitable to be a sales representative, including by cancelling the registration of any sales representative who violates laws and regulations, etc.
A person who holds the sales representative qualification and is registered as a sales representative can act as a sales representative. On the other hand, sale representatives are always required to have up-to-date knowledge of financial instruments; to 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, the 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 of time.
The Sales Representatives Manual includes the materials necessary for sales representatives to obtain the required knowledge to perform their duties. The manual explains laws, regulations and various rules as well as the product business knowledge that is necessary for persons who engage in a financial instruments business.
[Self-regulatory Rules related to Sales Representative Qualification]
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