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Free Practice Questions for Type 1 Securities Sales Representative Examination

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Exam pass rate: 73.1% for general examinees in FY2025 (5,418 of 7,408). 73.0% in FY2024 (5,038 of 6,903).
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Key Facts: Type 1 Securities Sales Representative Examination Exam

12,169 JPY

General Prometric fee including tax

Prometric Japan 外務員資格試験

100 items / 160 min

Official Type 1 length and time

JSDA 外務員資格試験

70% (308/440)

Passing score

JSDA 外務員資格試験

73.1%

FY2025 general-examinee pass rate (5,418 / 7,408)

JSDA 外務員資格試験 (一般受験者)

Open eligibility

No education or Type 2 prerequisite to sit

JSDA 外務員資格試験 / FAQ

JSDA Type 1 CBT: 160 minutes, 100 items, 440 points, 70% (308) to pass, 12,169 JPY tax included for the general Prometric sitting. Authorizes cash products plus margin and derivatives after registration. This bank is independent English MCQ study.

Sample Type 1 Securities Sales Representative Examination Practice Questions

Try these sample questions to review concepts for the Type 1 Securities Sales Representative Examination exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Financial Instruments and Exchange Act (FIEA / 金融商品取引法), which of the following activities falls under the category of Type I Financial Instruments Business (第一種金融商品取引業)?
A.Engaging in the purchase and sale of highly liquid securities such as listed stocks and bonds, or acting as an intermediary, broker, or agent for such transactions
B.Selling self-offered beneficiary rights of investment trusts solely through private placement to qualified institutional investors
C.Offering investment advisory services providing continuous advice on securities values in exchange for remuneration without discretionary authority
D.Managing investment assets based on discretionary investment contracts on behalf of retail clients
Explanation: Under FIEA Article 28(1), Type I Financial Instruments Business involves highly liquid securities transactions (such as underwriting, dealing, and brokerage of listed stocks, bonds, and market-traded derivatives), requiring strict capital and registration standards. Selling self-offered fund rights is Type II business, investment advisory is Investment Advisory and Agency Business, and managing assets under discretionary contracts is Investment Management Business.
2Which of the following instruments is classified as a Paragraph 2 Security (第2項有価証券 / deemed security) rather than a Paragraph 1 Security under Article 2 of the Financial Instruments and Exchange Act (FIEA)?
A.Interests in a collective investment scheme (集団投資スキーム持分), such as rights under a silent partnership (匿名組合) contract
B.Government bonds (国債証券) issued by the Ministry of Finance of Japan
C.Shares of common stock (株券) issued by a joint-stock company
D.Corporate bond certificates (社債券) issued by a domestic private corporation
Explanation: FIEA Article 2, Paragraph 2 lists the rights that are deemed securities in their own right — trust beneficiary rights, membership interests in a godo kaisha, and collective investment scheme interests such as silent-partnership (匿名組合) and investment limited partnership rights. Article 2, Paragraph 3 labels those listed rights 第二項有価証券. Everything in Article 2, Paragraph 1, plus any 有価証券表示権利 (a Paragraph 1 instrument whose certificate was never issued, such as book-entry shares or book-entry bonds), counts as 第一項有価証券 because it is expected to circulate widely.
3Under the Principle of Suitability (適合性の原則) set forth in Article 40 of the Financial Instruments and Exchange Act (FIEA), a Financial Instruments Business Operator must NOT solicit a customer if doing so is unsuitable in light of which combination of customer attributes?
A.The customer's knowledge, experience, financial condition, and the purpose of entering into the contract
B.The customer's credit score, political affiliation, employment seniority, and marital status
C.The customer's total tax liability, family lineage, real estate holdings, and educational degree
D.The customer's deposit balance at affiliated commercial banks and history of purchasing insurance products
Explanation: Article 40, Item 1 of the FIEA explicitly mandates that a Financial Instruments Business Operator must conduct solicitation in a manner that is suitable in light of the customer's knowledge, experience, status of assets (financial condition), and the purpose of concluding the contract for financial instruments transactions.
4Article 37-3 of the Financial Instruments and Exchange Act was retitled 契約締結前の情報の提供等 when the 2023 amendment took effect on 1 April 2025. Under the current rule, what must a Financial Instruments Business Operator do before concluding a contract with a general investor?
A.Provide the statutory pre-contract information in advance, either by delivering a document or by an approved electronic method
B.Provide the information within 30 days after the first transaction under the contract is executed
C.Provide the information only to professional investors (特定投資家)
D.Rely on an oral explanation alone, providing neither a document nor an electronic record
Explanation: The 2023 amendment (Act No. 79 of 2023, in force 1 April 2025) converted the old 契約締結前交付書面 delivery duty into an information-provision duty: under Article 37-3(1) the operator must provide the prescribed matters — fees, risks, the risk that principal may be lost, and the operator profile — in advance of concluding the contract, by document or by an approved electronic method. Article 37-3(2) layers a separate explanation duty on top, pitched to the customer’s knowledge, experience, financial condition, and contract purpose.
5Regarding statutory cooling-off (書面による契約の解除) under the Financial Instruments and Exchange Act, which of the following statements is correct?
A.Cooling-off applies to Investment Advisory Contracts (投資助言契約) within 10 days of receiving the contract document, but does not apply to purchases of listed stocks
B.Cooling-off allows retail investors to cancel any purchase of listed stocks or government bonds within 8 days of execution
C.Cooling-off applies unconditionally to all financial instruments transactions, including stock margin trades and futures
D.Cooling-off can never be exercised once the investor has made an initial cash margin deposit
Explanation: Under FIEA Article 37-6, cooling-off (cancellation by document within 10 days of contract document receipt) is recognized for investment advisory contracts. However, typical market transactions in listed equities, bonds, and exchange-traded derivatives are subject to market price volatility and are excluded from cooling-off to prevent opportunistic moral hazard.
6Under Article 38 of the Financial Instruments and Exchange Act, which of the following acts by a registered sales representative is strictly prohibited?
A.Providing assertive predictions (断定的判断の提供) on uncertain matters to solicit a customer to execute a transaction
B.Explaining both the upside potential and downside price risks of a listed corporate bond based on public earnings reports
C.Refusing to execute a purchase order because the client refuses to submit statutory customer identity verification
D.Informing an investor about historical dividend yields and past closing prices published by the Tokyo Stock Exchange
Explanation: Article 38, Item 2 of the FIEA strictly prohibits providing conclusive or assertive predictions (断定的判断の提供) regarding uncertain matters (such as guaranteeing that a stock price will rise or reach a specific target) when soliciting a customer.
7Under the Financial Instruments and Exchange Act, which of the following transactions is subject to the statutory prohibition of unsolicited solicitation (不招請勧誘の禁止) towards retail individual customers?
A.Over-the-counter financial derivatives transactions (店頭デリバティブ取引) such as retail FX margin trading
B.Initial public offerings (IPOs) of domestic common shares listed on the Tokyo Stock Exchange Prime Market
C.Purchases of long-term Japanese Government Bonds (JGBs) issued via competitive auction
D.Investments in publicly offered stock investment trusts (公募株式投資信託) investing in diversified global equities
Explanation: Under FIEA Article 38, Item 4 and the relevant Cabinet Office Order, unsolicited solicitation (approaching customers by visit or phone without their prior request) is strictly prohibited for high-risk leveraged products, notably over-the-counter (OTC) financial derivatives including retail FX margin trading and commodity derivatives.
8Under the FIEA investor classification framework, which entity is classified as a 'Professional Investor by Statute' (法律上当然に特定投資家とされる者) that can NEVER transition to General Investor (一般投資家) status?
A.The Bank of Japan (日本銀行) and Qualified Institutional Investors (適格機関投資家) such as banks and insurance companies
B.A listed joint-stock company (上場会社) that has submitted an opt-out notice to the securities firm
C.An individual investor with financial assets exceeding 300 million JPY and over one year of trading experience
D.A local public entity (地方公共団体) holding substantial reserve funds
Explanation: Under the FIEA, Professional Investors (特定投資家) are divided into categories. The Bank of Japan, the Japanese Government, and Qualified Institutional Investors (banks, life/non-life insurance firms, securities firms) are statutory professionals who can never opt out or transition to General Investor status. Listed companies and local governments are professionals that may opt to be treated as General Investors upon request.
9Under the Act on Provision of Financial Services (金融サービスの提供に関する法律 / formerly Financial Instruments Sales Act), what is a key feature of the financial business operator's statutory civil liability when failing to explain important matters (重要事項の説明義務違反)?
A.The operator is strictly liable for damages without requiring the customer to prove intentional misconduct or negligence (過失不要)
B.The customer must prove that the sales representative committed criminal fraud beyond a reasonable doubt
C.Damages are strictly capped at a maximum of 1,000,000 JPY regardless of the customer's actual capital loss
D.The operator is exempt from liability if the transaction took place online rather than in a physical branch
Explanation: Under the Act on Provision of Financial Services, if a financial provider fails to explain important matters (such as the risk of loss of principal due to market factors) and loss of principal occurs as a result, the provider is liable for statutory damages on a no-fault / strict liability basis (no negligence required to be proven by the customer), and the amount of principal loss is presumed to be the amount of damage.
10Under the Consumer Contract Act of Japan (消費者契約法), which of the following conditions gives a consumer the statutory right to rescind (取消し) a contract concluded with a business operator?
A.The business operator refused to leave the consumer's private residence despite the consumer's explicit request to leave (退去妨害・不退去)
B.The price of the acquired security declined due to broader macroeconomic rate hikes within 3 months of contract conclusion
C.The consumer changed their personal investment horizon after consulting with an independent accountant
D.The business operator provided detailed prospectuses containing statutory risk disclosures that the consumer did not read
Explanation: Under the Consumer Contract Act, a consumer can rescind a contract if their manifestation of intention was induced by improper conduct by the business operator, including misrepresentation of crucial facts (不実告知), failure to disclose disadvantageous facts (不利益事実の不告知), or distress caused by refusal to leave upon request (不退去) or confinement (監禁・退去妨害).

About the Type 1 Securities Sales Representative Examination Exam

The Type 1 Securities Sales Representative Examination (一種外務員資格試験) is JSDA's comprehensive sales-representative qualification under the Financial Instruments and Exchange Act. After JSDA registration through an Association Member, Class-1 representatives may solicit cash securities plus margin trading (信用取引) and derivatives. The official CBT is 160 minutes, 100 items (70 true/false and 30 five-choice) for 440 points, with a 70% (308-point) pass. The general Prometric fee is 12,169 JPY including tax. OpenExamPrep publishes independent English four-option MCQs for the named topics. It is not an official translation, not a true/false or five-choice simulation, and not a substitute for the Japanese (or member-firm English) CBT.

Exam sponsor: Japan Securities Dealers Association (JSDA / 日本証券業協会). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

CBT delivered by Prometric for JSDA. General sittings run on weekdays excluding public holidays and the year-end/New Year close. Type 1 covers Sales Representatives Manual volumes 1–4, including derivatives. Member-firm staff may sit English CBT in Tokyo's 23 wards; the general public sits in Japanese.

Time Limit

160 minutes (2 hours 40 minutes)

Passing Score

70% (308 out of 440 points)

Exam / Certification Fees

12,169 JPY including tax (general Prometric sitting)

Exam sponsor website

Reported exam pass rate: 73.1% for general examinees in FY2025 (5,418 of 7,408). 73.0% in FY2024 (5,038 of 6,903).. This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25% of this local practice set

法令・諸規則 (Laws & Regulations)

FIEA, solicitation statutes, JSDA rules, and exchange rules, including suitability, prohibited acts, and sales-representative registration.

25% of this local practice set

商品業務 (Product Business)

Cash equities, public and corporate bonds, investment trusts and J-REITs, and incidental securities services.

25% of this local practice set

デリバティブ取引・信用取引 (Derivatives & Margin)

Futures, options, swaps, structured notes, and margin-trading mechanics unique to Class 1.

25% of this local practice set

関連科目 (Related Subjects)

Market structure, Companies Act outline, macroeconomics, financial-statement analysis, and securities taxation including NISA.

Preparing for the Type 1 Securities Sales Representative Examination Exam

What You Need to Know

  • Passing score: 70% (308 out of 440 points)
  • Assessment: CBT delivered by Prometric for JSDA. General sittings run on weekdays excluding public holidays and the year-end/New Year close. Type 1 covers Sales Representatives Manual volumes 1–4, including derivatives. Member-firm staff may sit English CBT in Tokyo's 23 wards; the general public sits in Japanese.
  • Time limit: 160 minutes (2 hours 40 minutes)
  • Exam / certification fees: 12,169 JPY including tax (general Prometric sitting) Official sources

Using Our Practice Resources

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

Type 1 Securities Sales Representative Examination: Suggested Study Strategy

1Use all four 2026 外務員必携 volumes; Type 1 uniquely adds Volume 4 derivatives.
2Expect calculation items on bond yields, PER/PBR/ROE, futures P/L, and option payoffs; the official five-choice section is 10 points each.
3Memorize margin floors: initial 委託保証金 at least 30% and 300,000 JPY, and 20% maintenance against original contract value.
4Keep FIEA article numbers only when you have opened the statute: suitability is Article 40; assertive predictions are Article 38, Item 2; sales-representative suspension is Article 64-5.
5Practice Japanese past-paper style separately; this English MCQ set does not reproduce 〇✕ or five-choice format.

Frequently Asked Questions

What is the difference between Type 1 and Type 2 sales-representative qualifications?

JSDA: Type 2 may perform cash/spot securities duties but not margin trading or derivatives. Type 1 is the senior qualification and may perform those Type 2 duties plus margin trading and derivatives. Passing still requires employer-sponsored 外務員登録 before acting as a sales representative.

Who administers the exam and where is it taken?

JSDA administers the qualification. Association Member staff apply through their firm. The general public books Prometric CBT in Japan. Prometric's general sitting runs year-round on weekdays excluding holidays and the year-end/New Year close.

What is the official format, time limit, and passing score?

Type 1: 100 items in 160 minutes — 70 true/false (2 points) and 30 five-choice (10 points) for 440 points. Pass is 70% (308 points).

What is the 2026 general-public exam fee?

Prometric lists 12,169 JPY including tax for 一種外務員資格試験（一般）. Prometric states paid general reservations cannot be cancelled or refunded.

What language is the official exam in?

The general-public CBT is Japanese. JSDA provides an English CBT only for Association Member employees (Tokyo 23-ward sites; Japanese text can be toggled on screen). This OpenExamPrep bank is an independent English-language MCQ study adaptation, not an official translation.

Must I pass Type 2 before Type 1?

No. JSDA FAQ states you may sit Type 1 without holding Type 2.

Are OpenExamPrep questions official items?

No. Official items are Japanese (or member-firm English) true/false and five-choice CBT questions from the Sales Representatives Manual. These are independent four-option study questions.