100+ Free Securities Investment Adviser Practice Questions

Prepare for the Securities Investment Adviser Professional Competence Level Evaluation Test — Securities Investment Advisory Business (证券投资顾问专业能力水平评价测试—证券投资顾问业务) exam with instant access — no signup required.

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2026 Statistics

Key Facts: Securities Investment Adviser Exam

60 / 100

Passing score threshold (60%)

Securities Association of China (SAC)

120

Objective questions on official CBT exam

SAC Testing Regulations

180 mins

Examination duration (3 hours)

SAC Testing Regulations

RMB 61

Registration fee per subject paper

SAC Fee Schedule

20 Years

Minimum statutory suitability record retention period

CSRC Measures for Investor Suitability Management

RMB 12,000

Annual pre-tax deduction ceiling for Private Pension (个人养老金)

PRC State Council & Ministry of Finance

SAC's Securities Investment Advisory Business test is a 120-question, 180-minute specialized competence evaluation with a 60% correct basic standard. It covers advisory regulation and ethics, suitability, portfolio theory and asset allocation, financial planning, and product analysis. Passing alone does not grant adviser registration.

Sample Securities Investment Adviser Practice Questions

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

1Under the Interim Provisions on the Administration of Securities Investment Advisory Business (《证券投资顾问业务暂行规定》), which of the following best defines the legal nature and scope of securities investment advisory services in China?

A.Providing non-discretionary investment advice, asset allocation proposals, and market analysis where the client independently makes investment decisions and bears investment risks

B.Exercising full discretionary portfolio trading authority on behalf of the client to achieve a guaranteed minimum rate of return

C.Guaranteeing the preservation of the client's principal while sharing up to 20% of net investment profits upon annual settlement

D.Executing securities transactions automatically under a power of attorney without requiring individual client order confirmations

Explanation: Article 2 of the Interim Provisions on the Administration of Securities Investment Advisory Business explicitly defines securities investment advisory services as non-discretionary professional consulting. Advisers provide investment recommendations, asset allocation suggestions, and market analysis, but the client retains full decision-making autonomy and bears all investment risks. Chinese law strictly prohibits advisers from exercising discretionary trading or guaranteeing investment outcomes.

2A securities investment adviser at a licensed brokerage firm is asked by a high-net-worth client to manage her account directly using her trading password and execute trades whenever market opportunities arise. According to CSRC and SAC regulations, how must the adviser respond?

A.Accept the request only if the client signs a supplementary written power of attorney specifying an agreed stop-loss limit

B.Refuse the request immediately, as securities investment advisers are strictly prohibited from accepting full discretionary trading authority or managing client accounts directly

C.Accept the request provided that no performance bonus or profit-sharing fee is charged to the client

D.Accept the request after obtaining verbal approval from the branch compliance officer

Explanation: Under Article 19 and Article 24 of the Interim Provisions, securities investment advisers and their institutions are strictly prohibited from accepting discretionary trading authorizations (全权委托), holding client account trading passwords, or executing buy/sell transactions on behalf of clients. Even with written client consent, discretionary trading under an advisory relationship is an illegal practice subject to severe administrative penalties.

3Before providing securities investment advisory services to a retail client, what mandatory legal document must the securities company or advisory firm sign with the client in accordance with Article 12 of the Interim Provisions?

A.A written Securities Investment Advisory Service Agreement (证券投资顾问服务协议) detailing service scope, fee calculation, payment methods, and dispute resolution

B.A Discretionary Account Management Trust Contract (全权委托资产管理信托合同)

C.An Underwriting and Sponsorship Mandate Letter (承销与保荐委托协议)

D.A Margin Trading and Short Selling Custody Agreement (融资融券资金托管协议)

Explanation: Article 12 of the Interim Provisions mandates that securities firms and investment advisory institutions must enter into a formal written Securities Investment Advisory Service Agreement with the client before rendering advice. The agreement must clearly specify the institution's registration details, service content and scope, advisory fee amount and payment methods, rights and obligations, complaints handling, and dispute resolution mechanisms.

4Which of the following statements regarding the Securities Investment Advisory Risk Disclosure Statement (风险揭示书) is correct under SAC rules?

A.Clients must read, confirm, and sign the Risk Disclosure Statement in writing or electronic form prior to signing the advisory agreement

B.The Risk Disclosure Statement is optional for an ordinary investor placed in the firm's highest risk-bearing-capacity band

C.The Risk Disclosure Statement only needs to be delivered if the client incurs realized portfolio losses exceeding 20%

D.The adviser may sign the Risk Disclosure Statement on behalf of the client if the client authorizes them via telephone

Explanation: Under Article 13 of the Interim Provisions, securities firms must provide clients with a standardized Risk Disclosure Statement before signing an advisory agreement. The client must acknowledge, confirm understanding of the risks, and sign the statement. This requirement applies to all ordinary investors regardless of risk tier, and signature by proxy is strictly forbidden.

5Regarding the collection and billing of securities investment advisory fees, which of the following practices is fully compliant with Chinese regulatory standards?

A.Depositing advisory fees directly into the securities company's dedicated corporate bank account with an official invoice issued to the client

B.Allowing individual investment advisers to collect cash advisory service fees directly from clients during branch visits

C.Having clients transfer advisory fees to the personal Alipay or WeChat Pay account of the registered adviser for rapid processing

D.Deducting advisory fees directly from client margin collateral without prior written agreement or billing disclosure

Explanation: Article 23 of the Interim Provisions strictly requires that all securities investment advisory fees must be charged in the name of the licensed institution and deposited directly into the institution's dedicated corporate bank account. Individual investment advisers are strictly prohibited from collecting cash, receiving transfers into personal bank/digital payment accounts, or billing clients privately.

6An investment adviser publishes a promotional post stating: 'Join our VIP advisory group to achieve a guaranteed minimum annual return of 25% with zero principal downside.' What specific regulatory rule does this statement violate?

A.Article 19 of the Interim Provisions prohibiting false advertising, promising guaranteed investment yields, and committing to compensate investment losses

B.The PRC Anti-Monopoly Law regarding unfair price fixing across financial institutions

C.The Basel III Framework requirement regarding minimum Common Equity Tier 1 capital ratios

D.The PRC Civil Code provision governing standard general commercial warranties

Explanation: Article 19 of the Interim Provisions on Securities Investment Advisory Business explicitly prohibits securities investment advisory institutions and their personnel from making false or misleading promotional claims, guaranteeing investment returns (承诺收益), or promising to bear or compensate investment losses (承担赔偿损失).

7Under the regulatory standards established by the CSRC and SAC, which fee structure is explicitly PROHIBITED for securities investment advisory business in China?

A.Charging an agreed percentage of the client's net realized investment profits as a performance bonus (约定分享投资收益)

B.Charging a fixed periodic advisory fee (e.g., quarterly or annual flat subscription fee)

C.Charging an advisory fee calculated as a fixed percentage of total assets under advisory (AUA)

D.Charging a differential fixed service fee based on verified service tiering and consultation frequency

Explanation: Article 19 of the Interim Provisions strictly forbids securities investment advisory institutions and advisers from agreeing with clients to share investment profits (约定分享投资收益) or share investment losses. Advisory fees may be structured as fixed fees or asset-based percentages, but profit-sharing structures create severe conflicts of interest and are legally reserved only for qualified private investment funds under separate asset management regimes.

8To prevent insider trading and conflicts of interest, securities companies must maintain effective Information Barriers (信息隔离墙). How should the investment advisory department be segregated from other operational units?

A.The investment advisory business must be physically, organizationally, and informationally segregated from proprietary trading, investment banking, and direct investment businesses

B.Investment advisers must share real-time trading terminals with the proprietary trading desk to ensure price consistency

C.Investment banking teams must pre-brief retail investment advisers on upcoming unannounced M&A transactions to assist client positioning

D.The investment advisory department must report directly to the head of proprietary trading for portfolio alignment

Explanation: Under Article 8 and Article 9 of the Interim Provisions and SAC Information Barrier Guidelines, securities companies must establish rigorous Chinese Walls. The securities investment advisory department must operate independently and maintain strict physical, personnel, system, and informational segregation from proprietary trading (证券自营), investment banking (投资银行), and private equity investment to prevent insider trading and front-running.

9An investment adviser purchases 100,000 shares of Stock X in his personal account in the morning, publishes a strong 'Immediate Buy' recommendation to thousands of retail clients at noon, and sells his personal holdings in the afternoon as the stock price spikes. What illegal practice has the adviser committed?

A.Scalping / Front-running (抢帽子交易), which is strictly prohibited under the PRC Securities Law and subject to criminal liability

B.Compliant tactical market making under authorized broker dealer quotas

C.Permissible personal hedging following public research dissemination

D.Authorized liquidity injection under exchange stabilization mechanisms

Explanation: Article 55(6) of the PRC Securities Law prohibits publicly evaluating, forecasting, or recommending a security and then conducting a reverse trade to influence or intend to influence price or volume. This recommendation-based 'scalping' is market manipulation; administrative sanctions apply under Article 192, and criminal liability may apply if the criminal elements are met.

10When a securities investment adviser cites an external or in-house securities research report (证券研究报告) to formulate investment recommendations for clients, what rule must be observed under Article 16 of the Interim Provisions?

A.The adviser must cite the research report objectively, specify the publishing institution, author, and release date, and refrain from distorting the core opinions or conclusion

B.The adviser may freely modify the earnings forecast figures in the report without disclosing the modifications to clients

C.The adviser is prohibited from citing any research report published more than 24 hours prior to the consultation

D.The adviser may present the research report as their own original work if the original author works at the same firm

Explanation: Article 16 of the Interim Provisions states that when securities investment advisers provide advice based on securities research reports, they must cite the reports accurately, disclose the publishing securities firm, the certified research analysts, and the release date. Advisers must not misrepresent, fabricate, or distort the research basis or investment conclusions.

About the Securities Investment Adviser Exam

Securities Investment Advisory Business (证券投资顾问业务) is SAC's specialized level-evaluation test for investment-advisory knowledge. Current SAC rules treat a result as competence evidence or a reference, not as an automatic licence or registration. This English-language MCQ adaptation covers advisory regulation, suitability, portfolio theory, planning, and products; it is not an official translation, format simulation, or substitute for employer registration and supervised practice.

Assessment

120-question computer-based testing (CBT) session administered nationally by SAC

Time Limit

180 minutes (3 hours)

Passing Score

60 / 100 (60%)

Exam Fee

RMB 61 per subject registration (Securities Association of China (中国证券业协会 / SAC))

Securities Investment Adviser Exam Content Outline

20%

Advisory Regulations & Professional Ethics (证券投资顾问法规与职业道德)

Interim Provisions on Securities Investment Advisory Business (《证券投资顾问业务暂行规定》), non-discretionary advisory mandate vs. discretionary asset management prohibition (禁止全权委托), advisory service agreements, risk disclosure statements, fee disclosure standards, promotional compliance, and prohibition of promised returns or loss guarantees.

20%

Client Profiling & Investor Suitability (客户画像与投资者适当性)

KYC client discovery protocols, financial situation assessment, risk appetite vs. risk tolerance vs. risk-bearing capacity, statutory Ordinary-versus-Professional investor classification, institution-documented investor and product risk scales, suitability matching and warning procedures, high-risk product disclosures, and mandatory 20-year suitability recordkeeping.

25%

Modern Portfolio Theory & Asset Allocation (现代投资组合理论与资产配置)

Markowitz mean-variance portfolio theory, efficient frontier, diversification mechanics, Capital Asset Pricing Model (CAPM), Security Market Line (SML) vs. Capital Market Line (CML), performance metrics (Sharpe ratio, Treynor ratio, Jensen's Alpha, Sortino ratio, max drawdown), Strategic Asset Allocation (SAA), Tactical Asset Allocation (TAA), and portfolio rebalancing corridor bands.

20%

Wealth Planning & Life-Cycle Management (财富规划与全生命周期管理)

Life-cycle financial planning stages (single/formation, family growth, maturity/consolidation, retirement/spending), emergency reserve fund sizing (3-6 months expenses), education fund modeling, retirement replacement ratios, Three Pillars of China's pension system (Pillar 1 basic pension, Pillar 2 annuities, Pillar 3 private pension accounts with RMB 12,000 annual tax deductions), insurance structuring, and PRC Individual Income Tax (IIT) special additional deductions.

15%

Financial Product Analysis & Strategy Selection (金融产品分析与策略选择)

Equity investment strategies (value, growth, dividend yield, momentum), financial statement metrics (P/E, P/B, ROE, PEG), bond duration and convexity, credit spread evaluation, mutual fund selection (manager tenure, style consistency, tracking error), bank wealth management product NAV transformation under the New Asset Management Rules, and structured product risk disclosures (snowball autocallables).

How to Pass the Securities Investment Adviser Exam

What You Need to Know

Passing score: 60 / 100 (60%)
Assessment: 120-question computer-based testing (CBT) session administered nationally by SAC
Time limit: 180 minutes (3 hours)
Exam fee: RMB 61 per subject registration

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

Securities Investment Adviser Study Tips from Top Performers

1Distinguish clearly between non-discretionary investment advisory (投资顾问) and discretionary asset management (资产管理): advisory contracts must never authorize discretionary execution or guarantee principal/returns.

2Learn the institution's documented investor and product risk scales, then apply the current suitability, warning, disclosure, and evidence rules instead of assuming one universal C1-C5/R1-R5 sales matrix.

3Master the core portfolio calculations: CAPM expected return E(R) = Rf + Beta*(Rm - Rf), Sharpe Ratio = (Rp - Rf)/Sigma_p, Treynor Ratio = (Rp - Rf)/Beta_p, and Jensen's Alpha = Rp - [Rf + Beta_p*(Rm - Rf)].

4Know China's 3-pillar pension structure and private pension (个人养老金) mechanics: RMB 12,000 annual pre-tax contribution cap and 3% flat tax rate on withdrawal.

5Understand emergency reserve sizing rules: 3 to 6 months of average household living expenses held in cash, demand deposits, or money market funds (货币市场基金).

6Understand New Asset Management Rules (资管新规): elimination of implicit guarantees (打破刚性兑付), transition to net asset value (NAV) accounting, and risk structures of snowball autocallable options.

Frequently Asked Questions

What is the Securities Investment Adviser Competency Test in China?

Securities Investment Advisory Business (证券投资顾问业务) is SAC's specialized level-evaluation test for advisory knowledge. A result meeting the basic standard is competence evidence or a reference; it is not an automatic adviser licence or registration.

What is the format, question count, and duration of the official SAC exam?

The test is a 180-minute CBT with 120 objective questions, including single-choice, multiple-choice, judgment, and comprehensive items. At least 60% correct meets the basic standard. Current public SAC materials reviewed for this bank do not expressly enumerate delivery languages.

What is the key legal boundary between investment advisory and asset management in China?

Under the Interim Provisions on Securities Investment Advisory Business, investment advisers can only provide non-discretionary advice, market analysis, and asset allocation proposals; the client retains full decision-making and operational control. Advisers are strictly prohibited from accepting full discretionary trading power (全权委托), guaranteeing investment returns, or participating in client profit/loss sharing.

How are retail investors and financial products matched under China's suitability rules?

Institutions classify ordinary investors and products under their documented suitability systems, commonly using C1-C5 and R1-R5 scales. They must assess the client, apply the current matching or warning procedures, disclose material risk, and preserve evidence. A risk label does not guarantee principal or create a universal entitlement to sell every product at or below that label.

What are the tax benefits of China's Private Pension (个人养老金) accounts?

Eligible participants can contribute up to RMB 12,000 annually into their individual pension account, which is fully deductible from pre-tax comprehensive income for Individual Income Tax (IIT) purposes. Investment income accumulated in the account is temporarily tax-exempt, and upon retirement withdrawal, a preferential individual income tax rate of only 3% is levied separately.

What is the mandatory document retention period for investor suitability files in China?

Under CSRC and SAC investor suitability administrative regulations, securities companies and advisory institutions must maintain complete records of investor risk assessments, suitability questionnaires, video/audio recordings of disclosures, and advisory service contracts for a minimum statutory period of at least 20 years.