RULES CONCERNING QUALIFICATION AND
REGISTRATION, ETC. OF SALES REPRESENTATIVES OF
ASSOCIATION MEMBERS(July 14, 1992)

CHAPTER I.

GENERAL PROVISIONS(Purpose)
Article 1 The purpose of the Rules Concerning Qualification and Registration, Etc. of Sales
Representatives of Association Members (hereinafter referred to as the “Rules”) is to ensure improvementof the quality of Sales Representatives and proper and smooth operation of the Sales Representatives
Registration System by prescribing qualifications, business, training systems, etc. of Sales Representatives,
and the scope, etc. of the task entrusted with respect to the registration of Sales Representatives pursuant to
Article 64-7, Paragraph 1 of the Financial Instruments and Exchange Act (hereinafter referred to as “FIEA”),
thereby contributing to the investor protection.
(Definitions)
Article 2 In the Rules, the definitions of the terms set forth in each of the following Items shall be asprescribed therein:(1) Sales Representative: Officer or employee of an Association Member who is engaged, on behalf of
the Association Member, in any act which is prescribed in each Item of Article 64, Paragraph 1 of
the FIEA in connection with business according to each type of Association Members set forth ineach Item of Article 5 of the Articles of Association (hereinafter referred to as “Duties of Sales
Representative”);(2) Class-1 Sales Representative: Sales Representative who is authorized to engage in the Duties ofSales Representative (for a person who does not meet the requirements of Article 4-2, excluding
business related to the Specified Over-the-Counter Transactions of Derivatives, etc. (as prescribedin Article 3, Item 7 of the Articles of Association; the same shall apply hereinafter); for a person who
does not meet the requirements of Article 4-3, excluding business related to the Commodity-RelatedMarket Transactions of Derivatives, etc. (which means “Commodity-Related Market Transactionsof Derivatives” set forth in Article 2, Paragraph 8, Item 1 of the FIEA and “Brokerage for
Commodity-Related Market Transactions of Derivatives, etc.” set forth in Article 3, Item 10 of the
Articles of Association; the same shall apply hereinafter);(3) Margin Transaction Sales Representative: Sales Representative who is authorized to engage in the
Duties of Sales Representative by Class-2 Sales Representative and the Duties of Sales
Representative related to margin transactions, etc. (including the margin transactions and “whenissued” transactions; the same shall apply hereinafter). Provided, however, that a person who meetsthe requirements of Article 4-2, Paragraph 2 may conduct the Duties of Sales Representative related
to the Specified Over-the-Counter Transactions of Derivatives, etc.;(4) Class-2 Sales Representative: Sales Representative who is authorized to engage in the Duties ofSales Representative related to the Securities (excluding those listed below) set forth in Article 3,
Item 1 of the Articles of Association (excluding those related to the Transactions of SecuritiesRelated Derivatives, etc. set forth in Article 3, Item 4 of the Articles of Association and Transactions
in Bonds with Options, and as for margin transactions, etc., limited to those prescribed in the Detailed
Rules) and the Duties of Sales Representative that is related to the act prescribed in Article 33,
Paragraph 2, Item 6 of the FIEA. Provided, however, that a person who meets the requirements of1

Article 4-2, Paragraph 1, Item 3 or Paragraph 2 may conduct the Duties of Sales Representative
related to the Specified Over-the-Counter Transactions of Derivatives, etc.;(a) Share option certificates (i.e., those prescribed in Article 2, Paragraph 1, Item 9 of the FIEA,
and including those related to Article 2, Paragraph 1, Item 17 of the FIEA);(b) New investment unit subscription warrant securities (i.e., those prescribed in Article 2,
Paragraph 1, Item 11 of the FIEA and securities similar to REIT Warrants issued by a foreign
investment corporation prescribed in Article 220, Paragraph 1 of the Act on Investment Trustand Investment Corporations; the same shall apply hereinafter);(c) Covered warrants (i.e., those prescribed in Article 2, Paragraph 1, Item 19 of the FIEA);(d) Securities or certificates set forth in Article 2, Paragraph 1, Item 20 of the FIEA that are related
to those set forth in (a) and (c);(e) Complex structured bonds similar to Over-the-Counter Transactions of Derivatives (asprescribed in Article 2, Item 7 of the “Rules Concerning Solicitation for Investments andManagement of Customers, Etc. by Association Members” (hereinafter referred to as the“Investment Solicitation Rules”); the same shall apply hereinafter);(f) Complex investment trust similar to Over-the-Counter Transactions of Derivatives (asprescribed in Article 2, Item 8 of the Investment Solicitation Rules; the same shall apply
hereinafter); and(g) Leveraged investment trusts (as prescribed in Article 2, Item 9 of the Investment Solicitation
Rules; the same shall apply hereinafter).
(5) Special Member’s Class-1 Sales Representative: For Special Members, Sales Representative who isauthorized to engage in the Duties of Sales Representative (excluding acts of Financial Instruments
Intermediary Service by a Registered Financial Institution (acts set forth in Article 33, Paragraph 2,
Item 3(c) of the FIEA and Item 4(b) in the said Paragraph (excluding those related to the rights that are
regarded as the Securities pursuant to each Item of Article 2, Paragraph 2 of the same act); the same
shall apply hereinafter), those related to the acts set forth in Article 33-2, Item 1 of the FIEA, thoserelated to the Specified Over-the-Counter Transactions of Derivatives, etc. for those who do not meetthe requirements of Article 4-2, and those related to the Commodity-Related Market Transactions of
Derivatives, etc. for those who do not meet the requirements of Article 4-3) related to the Registered
Financial Institution Business (i.e., the Registered Financial Institution Business prescribed in Article
5, Item 3 of the Articles of Association; the same shall apply hereinafter), for Specified Business
Members who conduct the business set forth in Article 5, Item 2 (a) of the Articles of Association, Sales
Representative who is authorized to engage in the Duties of Sales Representative for the Specified
Over-the-Counter Transactions of Derivatives, etc., and for Specified Business Members who conduct
the business set forth in Article 5, Item 2 (c) of the Articles of Association, Sales Representative who
is authorized to engage in the Duties of Sales Representative for the Commodity-Related Market
Transactions of Derivatives, etc.;(6) Special Member’s Class-2 Sales Representative: Sales Representative who is authorized to engage
in the Duties of Sales Representative set forth in Article 33, Paragraph 2, Items 1, 2, 3(b) and 4(a) of
the FIEA (excluding the business related to securities and transactions set forth below), and theDuties of Sales Representative that is related to acts prescribed in Article 33, Paragraph 2, Item 6 of
the FIEA. Provided, however, that a person who meets the requirements of Article 4-2, Paragraph 1,
Item 3 or Paragraph 2 may conduct the Duties of Sales Representative related to the Specified Overthe-Counter Transactions of Derivatives, etc.;(a) New investment unit subscription warrant securities;2

(b) Complex structured bonds similar to Over-the-Counter Transactions of Derivatives;(c) Complex investment trust similar to Over-the-Counter Transactions of Derivatives;(d) Leveraged investment trusts;(e) Transactions of Securities-Related Derivatives, etc.; and(f) Sale and purchase of bonds with options.
(7) Special Member’s Class-4 Sales Representative: Sales Representative who is authorized to engage
in the Duties of Sales Representative that is related to the Specified Financial Instruments Businessprescribed in Article 33-8, Paragraph 2 of the FIEA (excluding the Business related to the securities
set forth below, and limited to a person who meets the requirements of Article 4-2 for the Specified
Over-the-Counter Transactions of Derivatives, etc.).
(a) New investment unit subscription warrant securities;(b) Complex investment trust similar to Over-the-Counter Transactions of Derivatives; and(c) Leveraged investment trusts.

CHAPTER II. REGISTRATION DUTY AND QUALIFICATION, ETC. OF SALESREPRESENTATIVES(Duty of Registering Sales Representatives)
Article 3 An Association Member must, when it intends to have any of its officers or employees conduct
the Duties of Sales Representatives, have that person’s name, date of birth and other matters prescribed in
the Detailed Rules registered in the Registry of Sales Representatives kept at the Association (hereinafterreferred to as “ Registry”).
2.
An Association Member must not have any person other than those registered under the provisionsof the preceding Paragraph conduct the Duties of Sales Representative.
(Sales Representative Qualifications)
Article 4 An Association Member may not register its officer or employee as Sales Representative unlesshe/she meets the requirements set forth in each of the following Items:(1) Class-1 Sales Representative: The officer or employee who passed the Qualification Examination
for the Class-1 Sales Representative under the “Rules Concerning Qualification Examination for
Sales Representatives, Etc.” (hereinafter referred to as “Examination Rules”);(2) Margin Transaction Sales Representative: The officer or employee who passed the Qualification
examination for the Margin Transaction Sales Representative under the “Rules Concerning
Qualification Examination for Securities Sales Representatives, Etc.” before its revision on April 1,
2006;(3) Class-2 Sales Representative: The officer or employee who passed the Qualification Examination
for Class-2 Sales Representative under the Examination Rules or completed the Training Course
for Newly-appointed Sales Representative conducted by the Association;3

(4) Special Member’s Class-1 Sales Representative: The officer or employee who passed the
Qualification Examination for the Class-1 Sales Representative or the Qualification Examination
for the Special Member’s Class-1 Sales Representative under the Examination Rules;(5) Special Member’s Class-2 Sales Representative: The officer or employee who has passed the
Qualification Examination for the Class-2 Sales Representative or the Qualification Examination
for the Special Member’s Class-2 Sales Representative under the Examination Rules or completed
the Training Course for Newly-appointed Sales Representative conducted by the Association; and(6) Special Member’s Class-4 Sales Representative: The officer or employee who passed the
Qualification Examination for the Class-1 Sales Representative, the Qualification Examination for
the Class-2 Sales Representative, the Qualification Examination for the Special Member’s Class-1
Sales Representative, the Qualification Examination for the Special Member’s Class-2 Sales
Representative or the Qualification Examination for the Special Member’s Class-4 Sales
Representative (i.e., the Qualification Examination for the Special Member’s Class-4 Sales
Representative under the provision of Article 3, Item 6 of the Examination Rules before the revision
on January 1, 2015; the same shall apply hereinafter) under the Examination Rules or completed
the Training Course for Newly-appointed Sales Representative conducted by the Association.
(Exceptional Cases for the Specified Over-the-Counter Transactions of Derivatives, Etc.)
Article 4-2 An Association Member must not allow a Sales Representative to conduct the Duties of Sales
Representative related to the Specified Over-the-Counter Transactions of Derivatives, etc. until he/she
fulfills any of the requirements set forth in each Item below, and is registered as prescribed in Article 3:(1) A person who passed the Qualification Examination for Class-1 Sales Representative, theQualification Examination for Special Member’s Class-1 Sales Representative, or the Qualification
Examination for Special Member’s Class-4 Sales Representative under the Examination Rules
enforced on and after April 1, 2009;(2) A person who passed the Qualification Examination for Class-1 Sales Representative or the
Qualification Examination for Special Member’s Class-1 Sales Representative under the
Examination Rules enforced on and before March 31, 2009, and who also participated in andcompleted an internal training course that is for the person engaged in Business related to theSpecified Over-the-Counter Transactions of Derivatives, etc., conducted in a method designated by
the Association, and approved by the Association to be effective for the Sales Representative
Qualification (hereinafter referred to as the “Paragraph 1 Internal Training” in this Article), and the
Association Member that conducted such Paragraph 1 Internal Training reported the result of the
training to the Association; or(3) A person who engages in the Specified Financial Instruments Business as prescribed in Article 338, Paragraph 2 of the FIEA (limited to the business set forth in the same Paragraph, Item 2), who
passed the Qualification Examination for Class-2 Sales Representative, the Qualification
Examination for Special Member’s Class-2 Sales Representative, or the Qualification Examinationfor Special Member’s Class-4 Sales Representative under the Examination Rules enforced on or
before March 31, 2009, or who completed a Newly-appointed Sales Representative Training Courseand participated in and completed the Paragraph 1 Internal Training, and the Association Memberthat conducted the Paragraph 1 Internal Training reported the result of training to the Association.
2.
Notwithstanding the provisions of the preceding Paragraph, an Association Member may have aregistered Sales Representative conduct the Duties of Sales Representative related to the Specified Overthe-Counter Transactions of Derivatives, etc. if he/she fulfills all the requirements set forth in each Item
below. Provided, however, that, if officers or employees are transferred among Association Members on aregular basis, and if the result of internal training that is conducted before March 31, 2009 prescribed in
Article 7-2 of the “Rules Concerning Qualification and Registration, Etc. of Sales Representatives of
Association Members” before the revision as of April 1, 2009 (hereinafter referred to as the “Paragraph 2Internal Training” in this Article) is shared among these Association Members, and if the Association deems

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it appropriate, the Paragraph 2 Internal Training conducted by the other Association Member may bereported in Item 2 as that conducted by the Association Member:(1) A person who fulfills the requirements set forth in each Item of the preceding Article by passing theexamination, etc. conducted on and before March 31, 2009;(2) A person who participated in and completed the Paragraph 2 Internal Training and whose result isreported to the Association; and(3) A person who belongs to the Association Member which made a report prescribed in the preceding
Item.
3.
When an Association Member conducts the Paragraph 1 Internal Training, the Association
Member must report the result to the Association using a designated method without delay.
(Exceptions in the Commodity-Related Market Transactions of Derivatives, etc.)
Article 4-3 An Association Member must ensure that a Sales Representative does not conduct the Duties ofSales Representative related to the Commodity-Related Market Transactions of Derivatives, etc. until he/she
fulfills either of the requirements set forth in each Item below, and is registered as prescribed in Article 3(which includes being registered under Article 20, Paragraph 1 of the Rules Concerning Financial
Instruments Intermediary Service Providers, hereinafter referred to as “Financial Instruments Intermediary
Service Provider Rules”):(1) A person who passed the Qualification Examination for Class-1 Sales Representative or the
Qualification Examination for Special Member’s Class-1 Sales Representative under the
Examination Rules enforced on and after July 1, 2020; or(2) A person who passed the Qualification Examination for Class-1 Sales Representative or the
Qualification Examination for Special Member’s Class-1 Sales Representative under the
Examination Rules enforced on and before June 30, 2020, and who also participated in andcompleted an internal training course that is for the person engaged in Business related to the
Commodity-Related Market Transactions of Derivatives, etc., conducted in a method designated by
the Association, or who completed the Training Course for Qualification Renewal of Sales
Representative conducted by the Association on and after July 1, 2020 (hereinafter referred to as the“Training Course for Qualification Renewal” in this Article).
(Prohibition of Duties of Sales Representative beyond the Scope of Qualification)
Article 5 An Association Member must not have its officer or employee engage in the Duties of Sales
Representative prescribed in Article 2, Item 2 through 7 unless its officer or employee meets therequirements set forth in each of the Items of Article 4.
(Action Prohibiting Duties of Sales Representative)
Article 6 If, as the result of its examination prescribed in Article 11 of the “Rules Concerning Employeesof the Association Members” (hereinafter referred to as “Employees Rules”), the Association deems that a
Sales Representative (including those who used to be Sales Representatives; the same shall apply hereinafterin this Article) breached laws and regulations relating to the Duties of Sales Representative or the incidental
business thereof, or took a significantly inappropriate action relating to the Duties of Sales Representative,
the Association shall, in accordance with the decision, take an action that prohibits the duties of Sales
Representative (hereinafter referred to as the “Action Prohibiting Duties of Sales Representative”) withrespect to such Sales Representative, to an Association Member to which such Sales Representative
belonged at the time of such breach or inappropriate action, within a period of five years. Provided, however,this provision shall not apply if the Association shall take a disciplinary action pursuant to Article 11 of theRules or regard the Sales Representative as a perpetrator of an inappropriate act pursuant to the provision5

of Article 12, Paragraph 1 of the Employee Rules.
2.
When a person who has received a decision concerning the Action Prohibiting Duties of Sales
Representative (hereinafter referred to as “Persons subject to Action Prohibiting Duties of Sales
Representative”) during the period set forth in each Item below pursuant to the preceding Paragraph or theprovision of Article 29, Paragraph 1 of the Financial Instruments Intermediary Service Provider Rules comesto fall under either of the following Items within five years from the date when such decision is made(hereinafter referred to as the “Action Period”), the period of the Action Prohibiting Duties of Sales
Representative prescribed in the preceding Paragraph shall be five years.
(1) The period for more than one month
In a case where a person who was already imposed the Action Prohibiting Duties of Sales
Representative for more than one month again has a reason that is subject to the Action Prohibiting
Duties of Sales Representative; or(2) The period for at least one day
In a case where a person who had already received a decision concerning the Action Prohibiting
Duties of Sales Representative was imposed the Action Prohibiting Duties of Sales Representative
again for at least one day, and also has a reason that falls under the Action Prohibiting Duties ofSales Representative during the Action Period.
3.
When an Association Member Applying for Registration (i.e., an Association Member who makes
an application for registration prescribed in Article 7, Paragraph 1, Item 1 of the Rules) who is related to the
Action Prohibiting Duties of Sales Representative prescribed in Paragraph 1 hereof or Article 29, Paragraph
1 of the Financial Instruments Intermediary Service Provider Rules has not been received a notice prescribedin the Article 25, Paragraph 1 of the “Rules Concerning Procedures for Disciplinary Action on Sales”, theAssociation shall notify it to such Association Member Applying for Registration. Provided, however, thisprovision shall not apply to a person whose Action Prohibiting Duties of Sales Representative is released
pursuant to Article 6-5, Paragraph 1 hereof or Article 29-5, Paragraph 1 of the Financial Instruments
Intermediary Service Provider Rules, or whose period of the Action Prohibiting Duties of Sales
Representative is expired.
4.
Each Paragraph above shall apply mutatis mutandis to officers or employees of an Association
Member who are not Sales Representatives. In such case, “Sales Representative (including those who used
to be Sales Representatives; the same shall apply hereinafter in this Article)” referred to in Paragraph 1 shallbe read as “officers or employees of an Association Member (including those who used to be an officer oran employee of an Association Member; the same shall apply hereinafter in this Article)”;“ breached laws
and regulations relating to the Duties of Sales Representative or the incidental business thereof, or took asignificantly inappropriate action relating to the Duties of Sales Representative” shall be read as “took an
action prescribed in the preceding Article and each Item of Article 7 of the Employee Rules or an
inappropriate action prescribed in Article 8 of the same Rules, or breached laws and regulations that should
be complied by officers or employees of a Financial Instruments Business Operator, and other significantly
inappropriate action,” and “such Sales Representative” shall be read as “such officers or employees”.
(Prohibition of Conducting the Duties of Sales Representative by a Perpetrator of an Inappropriate
Act or a Person subject to Action Prohibiting Duties of Sales Representative)
Article 6-2 An Association Member must not have a person who is treated as the Class-1 perpetrator of an
inappropriate act by the Association pursuant to Article 12, Paragraph 1 of the Employees Rules conduct
the Duties of Sales Representative.
2.
An Association Member must not have a person who is treated as the Class-2 perpetrator of an
inappropriate act by the Association pursuant to Article 12, Paragraph 1 of the Employees Rules conduct
the Duties of Sales Representative in five years from the date when such decision was made.
3.

An Association Member must not have the Person subject to Action Prohibiting Duties of Sales

6

Representative conduct the Duties of Sales Representative during the period of the Action Prohibiting Duties
of Sales Representative.
(List of Persons subject to Action Prohibiting Duties of Sales Representative)
Article 6-3 The Association shall prepare a list of persons who are subject to Action Prohibiting Duties ofSales Representative (hereinafter referred to as the “List of Persons subject to Action Prohibiting Duties ofSales Representatives”) that describes the name and date of birth of each of the Persons subject to Action
Prohibiting Duties of Sales Representative, details of act that causes the Action Prohibiting Duties of Sales
Representative against such Persons subject to Action Prohibiting Duties of Sales Representative, details ofsuch Action Prohibiting Duties of Sales Representative, the date when such Action Prohibiting Duties ofSales Representative is determined, and other matters that are deemed necessary.
(Application for Release of Action Prohibiting Duties of Sales Representative)
Article 6-4 When an Association Member believes that a Person under Action Prohibiting Duties of Sales
Representative clearly shows repentance, or a new fact is found regarding the details of the act that causedsuch Action Prohibiting Duties of Sales Representative against the Person under Action Prohibiting Duties
of Sales Representative, or if there is a special reason, and that it is appropriate to release the Action
Prohibiting Duties of Sales Representative, it may apply for the release of Action Prohibiting Duties of Sales
Representative by submitting to the Association a document describing the matters prescribed in the
Detailed Rules.
(Review and Notification of Release of Action Prohibiting Duties of Sales Representative)
Article 6-5 When the Association receives an application prescribed in the preceding Article, it shallreview it and, if it judges it appropriate, may release the Action Prohibiting Duties of Sales Representative
against such person.
2.
The Association shall notify the result of the review prescribed in the preceding Paragraph to the
Association Member which made the application subject to such review.
3.
When the Association releases the Action Prohibiting Duties of Sales Representative pursuant toParagraph 1, it shall erase the name and other descriptions of the person concerned from the List of
Persons subject to Action Prohibiting Duties of Sales Representative.

CHAPTER III.

PROCEDURES FOR REGISTRATION AND DISCIPLINARY ACTION,
ETC. OF SALES REPRESENTIVES(Application for Registration of Sales Representatives)
Article 7 An Association Member must, when intending to have Sales Representative registered prescribedby Article 3, Paragraph 1, submit to the Association an application for registration containing the mattersset forth below:(1) The trade name or corporate name of the Association Member applying for registration (hereinafterreferred to as “Association Member Applying for Registration”) and the name of its representative;(2) The matters set forth below relating to Sales Representative whose registration is applied for:(a) Name, former surname (former surname as specified in Article 30-13 of the Order for the
Enforcement of the Residential Basic Book Act (Cabinet Order No. 292 of 1967); the same
shall apply hereinafter) and given name (only when registering the former surname), and date7

of birth;(b) Whether he/she is officer or employee;(c) Identification number;(d) Whether or not the person has experience in conducting the Duties of Sales Representative(i.e., including the Duties of Sales Representative prescribed in Article 2, Item 7 of the
Financial Instruments Intermediary Service Provider Rules and the Duties of a Sales
Representative prescribed in Article 75, Paragraph 2 of the Act on the Provision of Financial
Services (hereinafter referred to as the “Financial Services Act”); for those who have such
experience, the trade name, corporate name, or personal name of the Financial Instruments
Business Operator (i.e., the Financial Instruments Business Operator set forth in Article 2,
Paragraph 9 of the FIEA), Registered Financial Institutions (i.e., the Registered Financial
Institution set forth in Article 2, Paragraph 11 of the FIEA) or Financial Instruments
Intermediary Service Provider (i.e., the Financial Instruments Intermediary Service Provider
set forth in the Article 2, Paragraph 12 of the FIEA), or Financial Service Intermediary (i.e.,
the Financial Service Intermediary set forth in Article 11, Paragraph 6 of the Financial
Services Act) he/she belonged to and the period for which he/she conducted such business;(e) Whether or not the person has experience in conducting the Financial Instruments
Intermediary Service (i.e., the Financial Instruments Intermediary Service set forth in Article
2, Paragraph 11 of the FIEA) or the Securities, etc. Intermediary Business Operations (i.e.,
the Securities, etc. Intermediary Business Operations set forth in Article 11, Paragraph 4 of
the Financial Services Act; the same shall apply hereinafter); for those who have either ofsuch experience, the period for which he/she conducted such business; and(f) Whether or not the person has experience in conducting the Financial Instruments Business(i.e., the Financial Instruments Business set forth in Article 2, Paragraph 8 of the FIEA); forthose who have such experience; the period for which he/she conducted such business.
2.

When making an application for registration, the following documents pertaining to the Sales
Representative whose registration is applied for must be attached:(1) Résumé;(2) A certified copy of his/her resident card or a paper to be substituted therefor;(3) When intending to obtain registration of the former surname and given name of said Sales
Representative, if the document set forth in the preceding item does not certify the former surname
and given name of said Sales Representative, a document certifying said former surname and given
name; and(4) Other documents prescribed in the Detailed Rules.

3.
When making an application for registration, an Association Member may use a method using anelectronic information processing system (i.e., an electronic information processing system that connects a
computer system used by the Association with the one used by a person who makes the application forregistration via a telecommunication line; the same shall apply hereinafter) determined by the Association
pursuant to the Act on Use of Information and Communications Technology in Administrative Procedure,
Etc., Ordinance for Enforcement of the Act on Use of Information and Communications Technology in
Administrative Procedure, Etc., Ordinance for Enforcement of the Act on Utilization of Information andCommunications Technology in Administrative Procedure, Etc. Pertaining to Finance Related Laws andRules Under the Jurisdiction of the Cabinet Office, and other related laws and regulations, or submit
documents.
(Registration and Notice of Registration)
Article 8 Where an Association Member makes an application for registration, the Association shallimmediately register in the Registry the matters prescribed in Article 3, Paragraph 1, excluding the casesthat fall under the provisions of Paragraph 1 of the following Article.

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2.
The Association shall, when it has made a registration prescribed in the preceding Paragraph,
notify the fact to Association Member Applying for Registration using a method prescribed in Paragraph 3of the preceding Article without delay.
(Refusal of Registration)
Article 9 In cases where Sales Representative whose registration is applied for falls under any of thefollowing Items or there is a false statement, or a lack of statement of any material fact, with respect to an
application for registration or any accompanying documents (including the cases where an application forregistration is made in a method using an electronic information processing system pursuant to the provisionof Article 7, Paragraph 3, and there is a false information or a lack of information of any material fact), theAssociation shall refuse such registration:(1) The persons who are set forth in Article 29-4, Paragraph 1, Item 2 (a) through (i) of the FIEA;(2) A person whose registration as a Sales Representative (including a sales representative stipulated in
Article 64, Paragraph 1 of the FIEA as applied mutatis mutandis pursuant to Article 66-25 of thesame Act and a sales representative stipulated in Article 75, Paragraph 1 of the Financial Services
Act; the same shall apply in the following item) was revoked pursuant to the provisions of Article
64-5, Paragraph 1 of the FIEA (including cases where it is applied mutatis mutandis pursuant to
Article 66-25 of the same Act and Article 77 of the Financial Services Act) or Article 11 of the rules,
and for whom five years have not yet passed from the date of revocation;(3) A person who is registered as a Sales Representative belonging to a Financial Instruments Business
Operator, a Registered Financial Institution or a Financial Instruments Intermediary Service Provider,or a Financial Service Intermediary other than Association Member Applying for Registration; or(4) A person who is registered under Article 66 of the FIEA or under Article 12 of the Financial Services
Act (limited to those concerning the Securities, etc. Intermediary Business Operations).
2.
The Association shall, when it intends to refuse registration prescribed in the preceding Paragraph,make a notification to the Association Member Applying for Registration concerned and conduct a hearing
pursuant to the Detailed Rules.
3.
The Association shall, when it refuses registration as a result of the hearing prescribed in thepreceding Paragraph, notify the fact in writing to the Association Member Applying for Registration without
delay.
(Notification of Change, Etc. in Registered Matters)
Article 10 An Association Member must, when there arise any facts that fall under any Items set forth below
with respect to its registered Sales Representative pursuant to Article 8, Paragraph 1, notify the fact to the
Association without delay using a method prescribed in Article 7, Paragraph 3:(1) There has been a change in any of the matters set forth in Article 7, Paragraph 1, Item 2(a) or (b);(2) Sales Representative falls under the provisions of Article 29-4, Paragraph 1, Item 2(a) through (i)of the FIEA; or(3) Sales Representative has ceased to conduct the Duties of Sales Representative because of resignationor any other reason.
2.
An Association Member who intends to make notification prescribed in Item 3 of the preceding
Paragraph must, in case where there occurred incidents prescribed in Article 9 of the Employees Rules withregard to Sales Representative whom notification is made, submit the Report on Incident Resolution
prescribed in Article 10, Paragraph 1 of the said Rules before the notification.

9

(Disciplinary Action against Sales Representatives)
Article 11 In cases where registered Sales Representative falls under any of the following Items, theAssociation may revoke his/her registration or impose suspension from the Duties of Sales Representative
for a period which is set up for not more than two years pursuant to Article 64-5, Paragraph 1 of the FIEA:(1) When the person falls under any of Article 29-4, Paragraph 1, Item 2(a) through (i) of the FIEA, orwhen it is identified that the person fell under any of the Items of Paragraph 1 of Article 9 Rules at
the time of registration;(2) When the person has violated any of laws or regulations concerning the Duties of Sales
Representative or business incidental to Financial Instruments Business conducted by an Association
Member (i.e., businesses conducted by the Regular Member, Specified Business Member, or Special
Member set forth in each Item of Article 5 of the Articles of Association), or when it is recognizedthat the person has done any other significantly improper act with respect to the duties of Sales
Representative; or(3) When it is identified that, in case the registration of the person has been deleted in the last five years
prescribed in Article 14, Paragraph 1, Item 3, any act of such person during the period registered(limited to the act in the last five years) fell under the preceding Item.
Article 12 （DELETED）(Training Courses for Persons subject to Action Prohibiting Duties of Sales Representative)
Article 13 An Association Member must immediately make a Person subject to Action Prohibiting Duties
of Sales Representative prescribed in Article 6, Paragraph 1 or suspension of the Duties of Sales
Representative prescribed in Article 11, take training courses designated by the Association (hereinafterreferred to as “Designated Training Courses”).
(Deletion of Registration)
Article 14 In the cases set forth below, the Association shall delete the registration relating to Sales
Representative in Registry:(1) In case where the Association revokes the registration of Sales Representative prescribed in Article
11;(2) In case where the Association Member to which the Sales Representative belongs falls under thecases set forth in Paragraph 2 of Article 12, Paragraph 2 of Article 14 or Paragraph 2 of Article 32 of
the Articles of Association; or(3) In case where the fact has been confirmed that Sales Representative has ceased to conduct the Duties
of Sales Representative because of resignation or any other reason.
2.
The Association shall, when it deletes the registration relating to Sales Representative prescribed
in Item 2 or 3 of the preceding Paragraph, notify the fact, in a method prescribed in Article 7, Paragraph 3
without delay, to the Association Member to which the Sales Representative belongs.
(Notification with respect to Registration Processing)
Article 15 The Association shall, when it makes a registration as prescribed in Article 8 Paragraph 1, achange in registration on notification as prescribed in Article 10, takes a disciplinary action as prescribed in
Article 11 (excluding the revocation of registration) or makes a deletion of registration prescribed in thepreceding Article, submit without delay a notification stating the matters set forth below to the Chief of the
Local Finance Bureau who has jurisdiction over the head office of the Association Member to which the10

Sales Representative belongs (Chief of the Fukuoka Local Finance Branch Bureau if the head office islocated in the jurisdiction of the Fukuoka Local Finance Branch Bureau, or Chief of the Kanto Local Finance
Bureau if there is no business office or office in Japan):(1) Trade name or corporate name of the Association Member to which the Sales Representative
concerned belongs;(2) Name and date of birth of the Sales Representative concerned;(3) Contents of registration processing and the date of processing; and(4) If the contents of registration processing set forth in the preceding Item is related to disciplinary
action of suspension from the Duties of Sales Representative or the deletion of registrations, thereason thereof.
(Payment of Registration Fee)
Article 16 An Association Member must, when it intends to have its Sales Representative register, pay to
the Association the registration fee prescribed in Article 256 of the Cabinet Office Ordinance on Financial
Instruments Business, Etc.
2.
The registration fee set forth in the preceding Paragraph shall in principle be paid in monies at thetime of making an application for registration.
(Delegation to Detailed Rules)
Article 17 Any necessary matters related to the registration of Sales Representatives shall be defined in the
Detailed Rules.

Chapter IV.

Training for Sales Representatives(Participation in Training Courses for Renewal of Sales Representative Qualification, Etc.)
Article 18 An Association Member must have its registered Sales Representatives take the Training Courses
for Qualification Renewal every five years from its registration date (hereinafter referred to as “Sales
Representative Registration Date”) that should be completed during the period of one year from the firstday of the month on which the Sales Representative Registration Date falls. Provided, however, that thisprovision shall not apply to those persons prescribed in the Detailed Rules.
2.
When an Association Member newly registers a person who was not registered as a Sales
Representative, it must have such person participate in the Training Courses for Qualification Renewal thatshould be completed within 180 days from the Sales Representative Registration Date. Provided, however,that this provision shall not apply to those persons prescribed in the Detailed Rules.
3.
The Association shall suspend the effectiveness of Sales Representative Qualification for persons
who have not completed the Training Courses for Qualification Renewal within the period prescribed in thepreceding two Paragraphs one day after the last day of such period (hereinafter referred to as “Due periodof Obligatory Participation” in this Article), and notify it to the Association Member he/she belongs to.
4.
If the effectiveness of Sales Representative Qualification of the person is suspended prescribedin the preceding Paragraph, an Association Member must not have the person conduct the Duties of Sales
Representative until such a suspension is released.

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5.
An Association Member must make efforts to have the person who has not completed the Training
Courses for Qualification Renewal by the Due Period of Obligatory Participation participate in the Training
Courses for Qualification Renewal that should be completed within 180 days from one day after the Due
Date of Obligatory Participation (hereinafter referred to as “Grace Period” in this Article).
6.
The Association shall release the suspension of the effectiveness of Sales Representative
Qualification for the person who completed the Training Courses for Qualification Renewal prescribed in
the preceding Paragraph on the completion day and notify it to the Association Member he/she belongs to.
7.
The Association shall revoke all of the Sales Representative Qualifications of the person who did
not complete the Training Courses for Qualification Renewal during the Grace Period (including cases
where the registration of Sales Representative is deleted during the Grace Period) one day after the last dayof the Grace Period, and notify it to the Association Member he/she belongs to.
8.
How to conduct the Training Courses for Qualification Renewal shall be determined by the
Association.
9.
Provisions in Article 6, Paragraphs 1 and 3, and Article 7, Paragraphs 1 to 3 and Paragraph 5 of
the Examination Rules shall apply mutatis mutandis to the Training Courses for Qualification Renewal. In
this case, “Examination” in each provision shall be read as “Training Courses for Qualification Renewal”,“Examination participation procedure” as “Course participation procedure”, “Examination fee” as “Course
fee”, “Committee” as “the Association”, “Unfair examination participant” as “Unfair course participant”,“Failure” as “Incompletion”, “Examination participation” as “Course participation”, “Unfair examination
participation” as “Unfair course participation”, and “Examination participant” as “Course participant”,
respectively.
(Participation in Internal Training Courses)
Article 19 An Association Member must have its registered Sales Representatives participate in internal
training courses every year for the purpose of improving the quality and capability of its Sales
Representatives besides the Training Courses for Qualification Renewal.

SUPPLEMENTARY PROVISIONS [Omitted](Note) 1. This amendment comes into effect as of September 26, 2022.
2.
In the case of applying for registration of a Sales Representative as set forth in Article 7, the “dateof application” as set forth in Article 2 of the Supplementary Provisions of the Cabinet Office Order for
Partial Amendment of the Cabinet Office Order on Financial Instruments Business, Etc. and the Cabinet
Office Order on Financial Service Intermediary, Etc. (Cabinet Office Order No. 40 in 2022) shall be
September 26, 2022.
This translation is solely for the convenience of those interested therein, and accordingly all questions that
may arise with regard to the meaning of the words or expressions herein shall be dealt with in accordancewith the original Japanese text.

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