Act on Regulation of Commodity Investment(Article 2 unenforced, etc.) (Japan)

Act on Regulation of Commodity Investment(Article 2 unenforced, etc.)

Published: 2009-01-01

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Act on Regulation of Commodity Investment (Article

2 unenforced, etc.)

(Act No. 66 of May 2, 1991)

Table of Contents

Chapter I General Provisions (Articles 1 and 2)

Chapter II Regulation of Commodity Investment

Section 1 Regulation of Commodity Investment Advising

Subsection 1 License (Articles 3 to 12)

Subsection 2 Business Activities (Articles 13 to 28-2)

Subsection 3 Supervision (Articles 29 to 32)

Section 2 Regulation of Other Commodity Investment (Articles 33 to 37)

Chapter III Miscellaneous Provisions (Articles 38 to 45)

Chapter IV Penal Provisions (Articles 46 to 51)

Supplementary Provisions

Chapter I General Provisions

(Purpose)

Article 1 The purpose of this Act is to secure the proper operation of the business

activities of persons who engage in commodity investment advising by

implementing a licensing system for persons who engage in commodity

investment advising and by applying other necessary regulations to commodity

investment, thereby ensuring the fair and smooth operation of commodity

investment and protecting investors.

(Definitions)

Article 2 (1) The term "commodity investment" as used in this Act shall mean

the following:

(i) Engaging in derivatives transactions prescribed in Article 2, paragraph (3)

of the Commodity Futures Act (Act No. 239 of 1950) (including transactions

in foreign commodity markets prescribed in paragraph (13) of said Article)

with regard to the commodities prescribed in Article 2, paragraph (1) of said

Act (hereinafter referred to as "specified commodities") or the commodity

indices prescribed in paragraph (2) of said Article (referred to as "specified

commodity indices" in Article 21, item (i) and Article 28, item (ii))

(ii) Engaging in transactions where the parties agree that, upon the

manifestation of intention by one of the parties, the other party grants said

party a right to execute transactions between the parties in commodities or

other goods specified by Cabinet Order as goods whose prices fluctuate

widely (including mining rights, industrial property rights and rights to the

utilization of facilities; the same shall apply in the following item and the

following paragraph) (referred to as "specified goods" in Article 21, item (i)

and Article 28, item (ii)) (referred to as an "option" in said item) and said

party pays the consideration therefor

(iii) Acquiring (including via production), transferring, using or having a

person use specified commodities or other goods specified by Cabinet Order

as goods whose prices fluctuate widely or as goods for which the income

obtained from their use (for mining rights, industrial property rights and

rights for the utilization of facilities, the exercise thereof; hereinafter the

same shall apply in this item) is difficult to predict (referred to as

"designated goods" in Article 21, item (i) and Article 28, item (ii))

(2) The term "commodity investment advisory contract" as used in this Act shall

mean a contract that provides that one of the parties shall be entrusted with

all or part of the investment decision pertaining to commodity investment

(which means a decision with regard to the type, number and price of goods

subject to investment as well as the distinction between selling or buying and

the method and time of selling or buying (in the case of derivatives

transactions prescribed in item (i) of the preceding paragraph (excluding the

transactions prescribed in Article 2, paragraph (3), item (i) of the Commodity

Futures Act pertaining to specified commodities) and transactions prescribed

in item (ii) of the preceding paragraph, a decision with regard to the subject

matter and timing of the transactions to be engaged in); the same shall apply

hereinafter) and shall be delegated the authority required to make a

commodity investment on behalf of the other party based on said investment

decision.

(3) The term "commodity investment advising" as used in this Act shall mean the

commercial pursuit of engaging in commodity investment based on commodity

investment advisory contracts.

(4) The term "commodity investment advisor" as used in this Act shall mean an

entity that engages in commodity investment advising under the license set

forth in the following Article.

(5) The term "commodity investment contract" as used in this Act shall mean the

following contracts, which are specified by Cabinet Order as those for which

the fairness of the commodity investment and the protection of investors have

to be secured:

(i) A contract where the parties agree that one of the parties will offer a

contribution to the commercial pursuits of the other party, and said other

party invests all or part of the contributed property as a commodity

investment, distributes profit arising from said investment and returns the

value of said contribution (in the case where said contribution has been

reduced due to loss, the remaining amount) (referred to as "distribution, etc.

of profit" in item (i) of the following paragraph)

(ii) A contract where the parties agree that each party will offer a contribution,

and a person who has been entrusted with the execution of business

activities invests all or part of the contributed property by means of

commodity investment as a joint enterprise, distributes income arising from

said investment and returns the value of the residual assets divided

according to the value of said contribution (referred to as "distribution, etc. of

income" in item (i) of the following paragraph)

(iii) A contract based on the laws and regulations of a foreign state which are

similar to those listed in the preceding two items

(6) The term "commodity investment beneficial interest" as used in this Act shall

mean the following interests, which are specified by Cabinet Order as those for

which the fairness of the commodity investment and the protection of investors

have to be secured:

(i) The interest in receiving a distribution, etc. of profit or the distribution, etc.

of income pertaining to a commodity investment contract

(ii) The interest in receiving a distribution of income from a trust and the

return of the principal for the purpose of investing all or part of a trust fund

by means of commodity investment

(iii) An interest of a juridical person established in accordance with the laws

and regulations of a foreign state (referred to as "foreign juridical person" in

the following Article and Article 39) similar to those listed in the preceding

two items.

Chapter II Regulation of Commodity Investment

Section 1 Regulation of Commodity Investment Advising

Subsection 1 License

(License for Commodity Investment Advisors)

Article 3 Commodity investment advising may only be engaged in by a stock

company which has obtained a license from the competent minister (with

regard to foreign juridical persons, limited to juridical persons of the same type

as a stock company which has a business office in Japan).

(Licensing Conditions)

Article 4 (1) The competent minister may attach conditions to the license set

forth in the preceding Article and change them.

(2) The conditions set forth in the preceding paragraph shall be the minimum

conditions necessary for securing the fairness of the commodity investment or

the protection of investors.

(Application for a License)

Article 5 (1) An entity that intends to obtain a license set forth in Article 3 shall

submit a written application for license containing the following matters to the

competent minister:

(i) Trade name and address

(ii) Names and location of business offices

(iii) Names and addresses of directors and corporate auditors (in the case of a

company with committees, directors and executive officers) and names and

addresses of employees specified by Cabinet Order if any

(iv) Names and addresses of accounting advisors in the case of a company with

accounting advisors

(v) Amount of stated capital

(vi) Type and method of business activities

(vii) Type of service if the entity provides other services

(viii) Other matters specified by ordinance of the competent ministry

(2) Documents specified by ordinance of the competent ministry shall be attached

to the written application for license set forth in the preceding paragraph.

(Criteria for Licensing)

Article 6 (1) When an application for license under the provisions of the

preceding Article has been filed, the competent minister shall examine whether

the application conforms to the following criteria:

(i) The applicant for a license has sufficient financial basis for soundly

performing the business activities it intends to engage in, and the outlook for

the income and expenditures for said business activities of the applicant is

favorable

(ii) In light of its personnel structure, the applicant for a license has the

knowledge and experience that enable the fair and appropriate performance

of the business activities it intends to operate and has sufficient social

credibility

(2) When the competent minister has found that the application conforms to the

criteria set forth in the preceding paragraph as a result of examination

pursuant to the provisions of said paragraph, he/she shall grant a license set

forth in Article 3, except when the applicant for a license falls under any of the

following items:

(i) An entity that is not a stock company of which the amount of stated capital

is not less than an amount specified by Cabinet Order as necessary and

appropriate to protect investors

(ii) A company whose license set forth in Article 3 has been rescinded pursuant

to the provisions of Article 32, paragraph (1) and for whom three years have

not lapsed from the day of the rescission, or a company whose similar license

obtained in a foreign state pursuant to the provisions of the laws and

regulations of said foreign state which are equivalent to this Act (including

registration and other administrative dispositions similar to said license;

hereinafter referred to as "license, etc.") has been rescinded and for whom

three years have not lapsed from the day of the rescission

(iii) A company which has been sentenced to a fine (including punishment

equivalent thereto under the laws and regulations of a foreign state)

pursuant to the provisions of this Act, the Financial Instruments and

Exchange Act (Act No. 25 of 1948), the Commodity Futures Act, the Act

Concerning Investment Trusts and Investment Corporations (Act No. 198 of

1951), the Act on Regulation of Acceptance of Contributions, Deposits, and

Interest Rates (Act No. 195 of 1954), the Act on Contracts for Deposit of

Specified Commodities (Act No. 62 of 1986) or the Trust Business Act (Act No.

154 of 2004), or the provisions of the laws and regulations of a foreign state

equivalent thereto and for whom three years have not lapsed from the day on

which execution of the sentence ended or from the day on which the sentence

ceased to be executed

(iv) A company of which any of the directors, accounting advisors, corporate

auditors, executive officers and employees specified by Cabinet Order fall

under any of the following:

(a) An adult ward or a person under curatorship or a person who is treated

the same as such a person under the laws and regulations of a foreign state

(b) A person who has received an order of commencement of bankruptcy

proceedings and has not yet had his/her rights restored or a person who is

treated the same as such a person under the laws and regulations of a

foreign state

more severe punishment (including punishment equivalent thereto under

the laws and regulations of a foreign state) and for whom three years have

not lapsed from the day on which execution of the sentence ended or from

the day on which the sentence ceased to be executed

(d) A person who has been sentenced to a fine (including punishment

equivalent thereto under the laws and regulations of a foreign state) for

the violation of the provisions of any of the laws prescribed in the

preceding item or the provisions of any of the laws and regulations of a

foreign state equivalent thereto or for the commitment of a crime set forth

in Article 204, 206, 208, 208-3, 222 or 247 of the Penal Code (Act No. 45 of

1907) or a crime set forth in the Act on Punishment of Physical Violence

and Others (Act No. 60 of 1926) and for whom three years have not lapsed

from the day on which execution of the sentence ended or from the day on

which the sentence ceased to be executed

(e) Where the license set forth in Article 3 given to a commodity investment

advisor has been rescinded pursuant to the provisions of Article 32,

paragraph (1), a person who was a director, accounting advisor, corporate

auditor, executive officer or employee specified by Cabinet Order of said

commodity investment advisor within 30 days prior to the day of rescission

and for whom three years have not lapsed from the day of said rescission

(f) A person whose similar license, etc. obtained in a foreign state pursuant

to the provisions of the laws and regulations of said foreign state which are

equivalent to this Act has been rescinded and for whom three years have

not elapsed from the day of the rescission (including a person who, within

30 days prior to the day on which a juridical person's license, etc. was

rescinded, was an employee as specified by Cabinet Order or an officer of

said juridical person, where three years have not elapsed from the day of

said rescission)

(v) A company whose business activity types and methods do not conform to the

criteria specified by ordinance of the competent ministry as those necessary

for the protection of investors.

(License Validity Period)

Article 7 The validity period of a license set forth in Article 3 shall be six years

from the day it is granted.

(Renewal of License Validity Period)

Article 8 (1) An entity that intends to continue to engage in commodity

investment advising pertaining to a license set forth in Article 3 after the

expiration of its validity period (including the validity period of a license

renewed under the provisions of this paragraph; the same shall apply

hereinafter) shall obtain a renewal of the validity period from the competent

minister pursuant to the provisions of ordinance of the competent ministry.

(2) The provisions of Articles 4 through 6 shall apply mutatis mutandis to a

renewal of the validity period of a license set forth in Article 3.

(3) In a case where an application for renewal of the validity period of a license

set forth in Article 3 has been filed by the time of the expiration of its validity

period, the license shall remain in force after the expiration of its validity

period until notice of the approval or refusal of the renewal is given.

(4) In the case referred to in the preceding paragraph, when the renewal of the

validity period is approved, the validity period of a license set forth in Article 3

pertaining to the renewal of said validity period shall be counted as being from

the day following the day of expiration of the previous validity period of the

license.

(Approval of Change)

Article 9 When a commodity investment advisor intends to change any of the

matters listed in Article 5, paragraph (1), item (vi) or intends to reduce the

amount of its stated capital, it shall obtain the approval of the competent

minister.

(Notification of Change)

Article 10 A commodity investment advisor shall, when there has been a change

to any of the matters listed in Article 5, paragraph (1), items (i) through (iv),

(vii) and (viii) or when it has increased the amount of its stated capital, notify

the competent minister to that effect within two weeks from such day.

(Notification of Discontinuance of Business)

Article 11 (1) When a commodity investment advisor has come to fall under any

of the following items, the person set forth respectively in those items shall

notify the competent minister to that effect within 30 days from such day:

(i) When the commodity investment advisor was extinguished as a result of a

merger: A person who was the representative director or representative

executive officer of the company

(ii) When the commodity investment advisor was dissolved by an order of

commencement of bankruptcy proceedings: The bankruptcy trustee

(iii) When the commodity investment advisor was dissolved by a reason other

than a merger or an order of commencement of bankruptcy proceedings: The

liquidator

(iv) When the commodity investment advisor terminated its commodity

investment advising: The representative director or representative executive

officer of the company that was the commodity investment advisor

(2) When a commodity investment advisor has come to fall under any of the items

of the preceding paragraph, the license set forth in Article 3 of said commodity

investment advisor shall cease to be effective.

(Fee)

Article 12 An entity that intends to obtain a renewal of the validity period set

forth in Article 8, paragraph (1) shall pay the fee of the amount specified by

Cabinet Order by taking actual cost into consideration.

Subsection 2 Business Activities

(Posting of a Sign)

Article 13 (1) A commodity investment advisor shall post a sign of the form

specified by ordinance of the competent ministry in a place that is easy to see

for the public at each business office.

(2) No person other than commodity investment advisors shall post a sign set

forth in the preceding paragraph or a sign similar thereto.

(Prohibition of Name Lending)

Article 14 A commodity investment advisor shall not have another person

engage in commodity investment advising in its name.

(Regulation of Advertising, etc.)

Article 15 (1) A commodity investment advisor shall, when advertising the

contents of its commodity investment advising, indicate the matters prescribed

in Article 25 pursuant to the provisions of ordinance of the competent ministry.

(2) A commodity investment advisor, when advertising its commodity investment

advising, shall not make an indication that is significantly contradictory to the

facts or seriously misleading with regard to the record of investments it has

made based on entrustment from clients with which it has concluded a

commodity investment advisory contract and other matters specified by

ordinance of the competent ministry.

(Solicitation of Conclusion or Renewal of a Commodity Investment advisory

Contract)

Article 16 (1) A commodity investment advisor shall, when soliciting the

conclusion or renewal of a commodity investment advisory contract, not commit

the act of intentionally failing to report facts or reporting untruths with regard

to matters concerning the commodity investment advisory contract which are

important matters that will have an impact on the judgment of the client.

(2) A commodity investment advisor shall not commit the act of reporting

untruths with regard to matters concerning a commodity investment advisory

contract which are important matters that will have an impact on the

judgment of the client for the purpose of preventing the cancellation of the

commodity investment advisory contract.

(Prohibition of Unjust Solicitation, etc.)

Article 17 A commodity investment advisor or an agent, employee, or other

worker thereof shall not commit the following acts:

(i) Soliciting a client to conclude or renew a commodity investment advisory

contract by providing him/her with a conclusive judgment that should

mislead him/her into believing that profits are certainly produced

(ii) Soliciting a client to conclude or renew a commodity investment advisory

contract by promising him/her to bear the whole or part of loss or by

guaranteeing profits

(iii) In addition to what is listed in the preceding two items, acts concerning

commodity investment advising which are specified by ordinance of the

competent ministry as those that lack protection for investors

(Delivery of a Document Prior to Conclusion of a Commodity Investment

Advisory Contract)

Article 18 A commodity investment advisor shall, prior to concluding a

commodity investment advisory contract, deliver a document to the competent

minister containing the contents of the commodity investment advisory

contract and an outline of the matters concerning performance of said

commodity investment advisory contract which are specified by ordinance of

the competent ministry, pursuant to the provisions of ordinance of the

competent minister, before the conclusion of said commodity investment

advisory contract.

(Delivery of a Document at the Time a Commodity Investment Advisory

Contract is Concluded)

Article 19 A commodity investment advisor shall, when a commodity investment

advisory contract has been concluded, deliver a document to the client without

delay containing the contents of said commodity investment advisory contract

and the following matters concerning the performance thereof pursuant to the

provisions of ordinance of the competent ministry:

(i) Scope of the entrustment of investment decisions and matters concerning

the execution of investments

(ii) Amount of remuneration and time of payment

(iii) Matters concerning cancellation of the contract

(iv) When there is a liquidated damages provision (including penalty), the

contents of the provision

(v) In addition to what is listed in the preceding items, matters specified by

ordinance of the competent ministry

(Delivery of a Report)

Article 20 A commodity investment advisor shall deliver to a client with which it

has concluded a commodity investment advisory contract a report explaining

the existing state of the assets of said client pertaining to said commodity

investment advisory contract pursuant to the provisions of ordinance of the

competent ministry.

(Delivery of a Document to a Client with Which a Commodity Investment

Advisor Has Concluded a Contract)

Article 21 A commodity investment advisor shall deliver to a client with which it

has concluded a commodity investment advisory contract a document clarifying

the following matters pursuant to the provisions of ordinance of the competent

ministry:

(i) Whether or not there is the fact that said commodity investment advisor has

engaged in transactions with regard to the same specified commodities,

specified commodity indices, specified goods or designated goods as those for

which the commodity investment advisor made investment based on

entrustment from said client out of transactions pertaining to commodity

investment based on its own account

(ii) In the case referred to in the preceding item, when there is a fact of having

engaged in such transactions, the distinction of selling or buying (in the case

of derivatives transactions prescribed in Article 2, paragraph (1), item (i)

(excluding transactions prescribed in Article 2, paragraph (3), item (i) of the

Commodity Futures Act pertaining to specified commodities) or transactions

prescribed in Article 2, paragraph (1), item (ii), matters specified by

ordinance of the competent ministry)

(iii) In addition to what is listed in the preceding two items, matters specified

by ordinance of the competent ministry

(Method of Using Information and Communications Technology)

Article 22 With the consent of the client, a commodity investment advisor may,

in lieu of the delivery of a document under the provisions of Article 18, 19 or 21

or the delivery of a report under the provisions of Article 20, provide

information pertaining to the matters that should be stated in said document

or report by a method using an electronic data processing system or a method

using other information and communications technology, which is specified by

ordinance of the competent ministry, pursuant to the provisions of Cabinet

Order. In this case, said commodity investment advisor shall be deemed to

have delivered said document or report.

(Inspection, etc. of Documents)

Article 23 A commodity investment advisor shall, pursuant to the provisions of

ordinance of the competent ministry, keep documents containing the status of

the business activities and property of said commodity investment advisor at

each business office and have its clients inspect them upon the request of the

clients.

Article 24 (1) A client who has concluded a commodity investment advisory

contract may, pursuant to the provisions of ordinance of the competent

ministry, request a commodity investment advisor pertaining to said

commodity investment advisory contract for the inspection or copy of books and

documents concerning the property of said client pertaining to said commodity

investment advisory contract.

(2) In the case referred to in the preceding paragraph, the commodity

investment advisor may not refuse the request except when there are reasonable

grounds for finding that the request falls under any of the following items:

(i) Not for the purpose of securing own rights or engaging in investigation

concerning the exercise of the rights

(ii) For the purpose of harming the operation of the business activities of said

commodity investment advisor

(Prohibition of Acceptance of Deposit of Money or Securities)

Article 25 A commodity investment advisor shall not, under any pretense, accept

the deposit of money or securities from a client, or have a person specified by

Cabinet Order as a person who has a close relationship with said commodity

investment advisor deposit the money or securities of a client, with regard to

its commodity investment advising; provided, however, that this shall not

apply when a commodity investment advisor which is a commodity futures

business operator prescribed in Article 2, paragraph (23) of the Commodity

Futures Act does so in relation to the client of its commodity futures business

(which means commodity futures business activities prescribed in Article 2,

paragraph (22) of said Act; the same shall apply in Article 28-2).

(Prohibition of Loaning or Mediation Thereof, etc.)

Article 26 A commodity investment advisor shall not loan a client money or

securities, or act as an intermediary, agent or other representative for the

loaning of money or securities to a client by a third party, with regard to its

commodity investment advising.

(Duty of Loyalty)

Article 27 A commodity investment advisor shall faithfully engage in commodity

investment advising on behalf of clients in accordance with the provisions of

laws and regulations and the purpose of commodity investment advisory

contracts.

(Prohibited Acts)

Article 28 A commodity investment advisor shall not commit the following acts

with regard to its commodity investment advising:

(i) Engaging in transactions pertaining to commodity investment with a client

as the other party

(ii) Making commodity investment based on an investment decision that does

not have justifiable grounds by using the change of price, numerical value or

amount of consideration based on the commodity investment which the

commodity investment advisor has made with regard to specified

commodities, etc. (which means specified commodities, specified commodity

indices, options pertaining to specified goods or designated goods) based on

entrustment from the client, for the purpose of looking after its own profit or

the profit of a third party other than said client

(iii) In addition to what is listed in the preceding two items, acts specified by

ordinance of the competent ministry as those that lack protection for

investors or those that harm the fairness of the commodity investment

(Acts Prohibited when Carrying Out Commodity Futures Business Activities)

Article 28-2 When engaging in commodity futures business, a commodity

investment advisor shall not engage in the following acts with regard to a

client with whom said commodity investment advisor has concluded a

commodity investment advisory contract:

(i) Making a commodity investment in a transaction that is unnecessary in

light of its objective, amount, or the market conditions, with regard to

commodity investment advising for the purpose of realizing profits from the

commodity futures business

(ii) In addition to what is listed in the preceding item, acts specified by

ordinance of the competent ministry as lacking protection for investors or

harming the fairness of the commodity investment

Subsection 3 Supervision

(Books and Documents Related to Business Activities)

Article 29 A commodity investment advisor shall, pursuant to the provisions of

ordinance of the competent ministry, prepare and preserve books and

documents related to its business activities.

(Report and Inspection)

Article 30 (1) When the competent minister finds it necessary for the

enforcement of this Act, he/she may have a commodity investment advisor or a

person who deals with a commodity investment advisor make a report or have

his/her officials enter the business office of the commodity investment advisor

to inspect the books, documents and other articles of the commodity investment

advisor.

(2) The officials who engage in an inspection pursuant to the provisions of the

preceding paragraph shall carry identification cards and present them to the

persons concerned.

(3) The authority for the inspections under the provisions of paragraph (1) shall

not be interpreted as being that recognized for criminal investigation.

(Order to Improve Business Activities)

Article 31 When the competent minister finds that there is a fact that harms the

fairness of the commodity investment or the interests of investors with regard

to the operation of the business activities of a commodity investment advisor,

he/she shall order said commodity investment advisor to change the type and

method of the business activities, deposit its property or take any other

necessary measures for improving the operation of the business activities

within the limit necessary for securing the fairness of the commodity

investment or the protection of investors.

(Rescission of License)

Article 32 (1) When a commodity investment advisor falls under any of the

following items, the competent minister may rescind his/her license set forth in

Article 3, or order the suspension of the whole or part of the business activities

of the commodity investment advisor for a fixed period not exceeding six

months:

(i) When the commodity investment advisor has come to fall under any of

Article 6, paragraph (2), items (i) through (iv) (with regard to item (ii) of said

paragraph, limited to the part pertaining to the provisions of the laws and

regulations of a foreign state equivalent to this Act)

(ii) When the commodity investment advisor has obtained a license set forth in

Article 3 or a renewal of the validity period set forth in Article 8, paragraph

(1) by wrongful means

(iii) When the commodity investment advisor has violated this Act or an order

based on this Act, or a disposition based thereon, or any of the conditions

attached to a license prescribed in Article 4, paragraph (1)

(iv) In the case where the commodity investment advisor has committed a

wrongful or remarkably unjust act with regard to its commodity investment

advising, when the circumstances related to the act are especially serious

(2) When the competent minister has rendered a disposition under the provisions

of the preceding paragraph, he/she shall publicize that effect.

Section 2 Regulation of Other Commodity Investment

(Restriction on Conclusion of a Commodity Investment Contract)

Article 33 (1) A person who concludes a commodity investment contract or acts

as an agency or mediate for the conclusion of such a contract (hereinafter

referred to as "conclusion, etc." in this paragraph and Article 35) in the course

of trade shall not engage in conclusion, etc. unless the contract is a commodity

investment contract that entrusts a commodity investment advisor or any

other person specified by Cabinet Order as a person similar thereto (referred to

as "commodity investment advisor, etc." in the following paragraph) with an

investment decision pertaining to commodity investment; provided, however,

that this shall not apply to commodity investment contracts where a person

who engages in investment management business activities with the

registration set forth in Article 29 of the Financial Instruments and Exchange

Act (which means investment management business activities prescribed in

Article 28, paragraph (4) of said Act) (hereinafter simply referred to as a

"person who engages in investment management business activities" in this

Article and Article 40, paragraph (2)) invests investment trust assets

prescribed in Article 3, item (ii) of the Act Concerning Investment Trusts and

Investment Corporations or assets of a registered investment corporation

prescribed in Article 2, paragraph (13) of said Act (referred to as "investment

trust assets, etc." in the proviso to the following paragraph and Article 40,

paragraph (2)) by means of commodity investment, and commodity investment

contracts for the investment of surplus funds that have arisen from the

investment of invested assets of a person who engages in investment

management business activities (which means invested assets prescribed in

Article 35, paragraph (1), item (xv) of the Financial Instruments and Exchange

Act; the same shall apply in the proviso to the following paragraph, the

following Article and Article 40, paragraph (2)) and any other funds specified

by Cabinet Order as similar thereto by means of commodity investment.

(2) A person who sells a beneficial interest of commodity investment or acts as an

agency or mediate for selling such an interest (hereinafter referred to as

"selling, etc." in this paragraph and Article 35) in the course of trade shall not

engage in selling, etc. unless the interest is a beneficial interest of commodity

investment pertaining to a contract that entrusts a commodity investment

advisor, etc. with an investment decision pertaining to commodity investment;

provided, however, that this shall not apply to beneficial interests of

commodity investment pertaining to commodity investment which is made by a

trust company (limited to those that have obtained a license set forth in Article

3 or Article 53, paragraph (1) of the Trust Business Act; the same shall apply

in Article 40, paragraph (2)) or a financial institution that additionally engages

in trust business activities without being instructed by a settlor or a person

who has received the entrustment of the authority to give instructions from a

settlor, beneficial interests of commodity investment pertaining to a contract

where a person who engages in investment management business activities

invests investment trust assets, etc. by means of commodity investment, and

beneficial interests of commodity investment pertaining to a contract for the

investment of surplus funds that have arisen from the investment of invested

assets of a person who engages in investment management business activities

and any other funds specified by Cabinet Order as similar thereto by means of

commodity investment.

(Separate Management of Property)

Article 34 A person who manages property that has been contributed based on a

commodity investment contract (limited to those who conclude commodity

investment contracts in the course of trade) shall manage said property

(excluding that which falls under invested property) separately from his/her

private property and property that has been contributed based on other

commodity investment contracts pursuant to the provisions of ordinance of the

competent ministry.

(Instruction)

Article 35 Where a person who concludes, etc. commodity investment contracts

in the course of trade has violated the provisions of Article 33, paragraph (1) or

the preceding Article, or where a person who sells, etc. beneficial interests in

commodity investments in the course of trade has violated the provisions of

Article 33, paragraph (2), the competent minister may, when he/she finds that

the fairness of the commodity investment or the interest of investors is likely

to be harmed, instruct said person who concludes, etc. commodity investment

contracts or sells beneficial interests in commodity investments in the course of

trade (hereinafter referred to as a "commodity investment sales manager" in

this Section and Article 43) to take necessary measures.

(Suspension of Business Activities)

Article 36 (1) Where a commodity investment sales manager has violated the

provisions of Article 33 or 34, the competent minister may, when he/she finds

that the fairness of the commodity investment or the interest of investors is

likely to be substantially harmed or when the commodity investment sales

manager does not follow an instruction under the provisions of the preceding

paragraph, order said commodity investment sales manager to suspend all or

part of its business activities for a fixed period not exceeding six months.

(2) When the competent minister has issued an order under the provisions of the

preceding paragraph, he/she shall publicize that effect.

(Provisions Applied Mutatis Mutandis)

Article 37 The provisions of Article 30 shall apply mutatis mutandis to

commodity investment sales managers.

Chapter III Miscellaneous Provisions

(Completion of Business Activities Incidental to Rescission of a License)

Article 38 When a license set forth in Article 3 has ceased to be effective

pursuant to the provisions of Article 11, paragraph (2) or when a license set

forth in Article 3 has been rescinded pursuant to the provisions of Article 32,

paragraph (1), an entity that was a commodity investment advisor pertaining

to said license or its general successor shall be deemed to remain to be a

commodity investment advisor within the scope of the purpose to complete

business activities based on the commodity investment advisory contracts that

said commodity investment advisor has concluded.

(Technical Replacement of Terms in Applying the Provisions of This Act to a

Foreign Juridical Person)

Article 39 Where a commodity investment advisor is a foreign juridical person,

the technical replacement of the terms in applying the provisions of this Act to

said commodity investment advisor and any other necessary matters for the

application of the provisions of this Act shall be specified by Cabinet Order.

(Exemption from Provisions on Regulation of Commodity Investment Advising)

Article 40 (1) The provisions of Articles 16 through 22, 26 and 28 (limited to the

part pertaining to item (i)) shall not apply to a commodity investment advisory

contract which a commodity investment advisor concludes or intends to

conclude with a person (with regard to the provisions of Articles 18 through 22,

limited to stock companies of which the amount of stated capital is not less

than the amount specified by ordinance of the competent ministry and other

persons specified by ordinance of the competent ministry) who has concluded or

is attempting to conclude said contract for the purpose of a commercial pursuit

or as part of a commercial pursuit.

(2) The provisions of Section 1 of the preceding Chapter shall not apply to trust

companies, financial institutions that additionally engage in trust business

activities or persons who engage in investment management business activities

(limited to the cases where investment trust assets, etc. are invested by means

of commodity investment and where surplus funds that have arisen from the

investment of invested assets and any other funds specified by Cabinet Order

as similar thereto by means of commodity investment).

Article 41 Deleted

(Competent Minister)

Article 42 (1) The competent minister mentioned in Section 1 of the preceding

Chapter shall be the Minister of Agriculture, Forestry and Fisheries or the

Minister of Economy, Trade and Industry pursuant to the provisions of Cabinet

Order, and the competent minister mentioned in Section 2 of said Chapter

shall be the Prime Minister, the Minister of Agriculture, Forestry and

Fisheries or the Minister of Economy, Trade and Industry pursuant to the

provisions of Cabinet Order.

(2) The ordinance of the competent ministry mentioned in this Act shall be an

order issued by the Prime Minister, the Minister of Agriculture, Forestry and

Fisheries or the Minister of Economy, Trade and Industry pursuant to the

provisions of Cabinet Order.

(3) The Prime Minister shall delegate his/her authority under the provisions of

Section 2 of the preceding Chapter (excluding that specified by Cabinet Order)

to the Commissioner of the Financial Services Agency.

(4) The part of the authority delegated to the Commissioner of the Financial

Services Agency pursuant to the provisions of the preceding paragraph and the

authority of the Minister of Agriculture, Forestry and Fisheries and the

Minister of Economy, Trade and Industry under this Act may be delegated to

the head of a local branch office (with regard to the authority delegated to said

Commissioner of the Financial Services Agency, the head of a Local Finance

Bureau or the head of a Local Finance Branch Bureau) pursuant to the

provisions of Cabinet Order.

(Submission of Materials to the Minister of Finance)

Article 43 When the Minister of Finance finds it necessary for planning or

drafting a system pertaining to commodity investment sales managers, he/she

may request the Prime Minister to submit necessary materials and to give

explanations with regard to the system for the disposal of collapsed financial

institutions and the management of financial crises pertaining to his/her

jurisdiction.

(Delegation to Ordinance of the Competent Ministry)

Article 44 In addition to what is provided for in this Act, matters necessary for

the enforcement of this Act shall be specified by ordinance of the competent

ministry.

(Transitional Measures)

Article 45 Where an order is established or revised or abolished pursuant to this

Act, said order may specify required transitional measures (including

transitional measures pertaining to penal provisions) within the scope that is

considered to be reasonably necessary in accordance with said establishment or

revision or abolition.

Chapter IV Penal Provisions

Article 46 A person who falls under any of the following items shall be punished

by imprisonment with work for not more than three years or by a fine of not

more than three million yen, or shall be subject to the cumulative imposition

thereof:

(i) A person who has engaged in commodity investment advising without

obtaining the license set forth in Article 3

(ii) A person who, in violation of the provisions of Article 14, has had another

person engage in commodity investment advising

(iii) A person who, in violation of the provisions of Article 28, item (ii), has

made commodity investment based on an investment decision that does not

have justifiable grounds

Article 47 A person who falls under any of the following items shall be punished

by imprisonment with work for not more than one year or by a fine of not more

than one million yen, or both:

(i) A person who has violated any of the conditions attached pursuant to the

provisions of Article 4, paragraph (1) (including where applied mutatis

mutandis pursuant to Article 8, paragraph (2))

(ii) A person who, in violation of the provisions of Article 9, has changed any of

the matters listed in Article 5, paragraph (1), item (vi) or who has decreased

the amount of stated capital

(iii) A person who, in violation of the provisions of Article 16, paragraph (1),

has intentionally failed to report facts or who has reported untruths

(iv) A person who, in violation of the provisions of Article 16, paragraph (2),

has reported untruths

(v) A person who, in violation of the provisions of Article 25, has received a

deposit of money or securities from a client or has had another person

deposit the money or securities of a client

(vi) A person who, in violation of the provisions of Article 26, has loaned a

client money or securities or has acted as an intermediary, agent, or other

representative for the loaning of money or securities to a client by a third

party

(vii) A person who, in violation of the provisions of Article 28, item (i), has

engaged in a commodity investment transaction with a client as the other

party

(viii) A person who has violated an order of suspension of business activities

under the provisions of Article 32, paragraph (1) or Article 36, paragraph (1)

Article 48 A person who falls under any of the following items shall be punished

by imprisonment with work for not more than six months or by a fine of not

more than 500 thousand yen, or shall be subject to the cumulative imposition

thereof:

(i) A person who has entered a false statement in a written application for

license or attached document set forth in Article 5 (including the cases where

applied mutatis mutandis pursuant to Article 8, paragraph (2)) and

submitted them

(ii) A person who, in violation of the provisions of Article 15, paragraph (1), has

failed to indicate the matters prescribed in said paragraph

(iii) A person who, in violation of the provisions of Article 15, paragraph (2),

has made an indication that is significantly contradictory to the facts or is

seriously misleading

(iv) A person who, in violation of the provisions of Article 18, 19 or 21, has

failed to deliver a document or has delivered a document not containing the

outline or matters prescribed in these provisions or a document containing a

false statement

(v) A person who, in violation of the provisions of Article 20, has failed to

deliver a report or has delivered a report not containing the matters

prescribed in said Article or a report containing a false statement

Article 49 A person who falls under any of the following items shall be punished

by a fine of not more than 300 thousand yen:

(i) A person who has failed to make a notification under the provisions of

Article 10 or has made a false notification

(ii) A person who, in violation of the provisions of Article 13, paragraph (1), has

failed to post a sign of the form specified by ordinance of the competent

ministry

(iii) A person who, in violation of the provisions of Article 13, paragraph (2),

has posted a sign under the provisions of paragraph (1) of said Article or a

sign similar thereto

(iv) A person who, in violation of the provisions of Article 23, has failed to keep

documents or to have clients inspect them upon request of the clients, or has

kept documents containing a false statement or has had clients inspect such

documents

(v) A person who, in violation of the provisions of Article 24, paragraph (2), has

refused a request for the inspection or copy of books and documents without

reasonable grounds

(vi) A person who has failed to prepare or preserve books and documents under

the provisions of Article 29 or has prepared false books and documents

(vii) A person who has failed to make a report under the provisions of Article

30, paragraph (1) (including the cases where applied mutatis mutandis

pursuant to Article 37) or has made a false report, or has refused, prevented

or avoided an inspection under the provisions of said paragraph

(viii) A person who has violated an order under the provisions of Article 31

Article 50 When the representative of a juridical person or an agent, employee or

other person engaged by a juridical person or individual has committed any of

the violations set forth in Articles 46 through the preceding Article with regard

to the business activities of said juridical person or individual, not only the

offender but also said juridical person or individual shall be punished by the

fine prescribed in the respective Articles.

Article 51 A person who has failed to make a notification under the provisions of

Article 11, paragraph (1) or has made a false notification shall be punished by

a non-penal fine of not more than one million yen.

Supplementary Provisions [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from the day specified by Cabinet

Order within a period not exceeding one year from the day of promulgation.

(Transitional Measures)

Article 2 (1) A person who engages in commodity investment sales business

activities at the time of the enforcement of this Act may continue to engage in

the commodity investment sales business activities for a period of six months

from the effective date of this Act (when a disposition of non-licensing pursuant

to Article 6, paragraph (1) has been rendered within said period or when the

termination of the commodity investment sales business activities has been

ordered pursuant to the provisions of Article 28, paragraph (1) applied by

replacing terms pursuant to the provisions of the following paragraph, the

period until the day on which said disposition was rendered or the day on

which said abolition was ordered) notwithstanding the provisions of Article 3.

In the case where said person has filed an application for license set forth in

said Article during said period, when the period has lapsed, the same shall

apply for the period until a disposition of licensing or non-licensing is rendered

with regard to the application.

(2) Where a person who engages in commodity investment sales business

activities at the time of enforcement of this Act may continue to engage in the

commodity investment sales business activities pursuant to the provisions of

the preceding paragraph, the provisions of Articles 15 through 27 and 28

(excluding paragraph (1), item (ii)) (including penal provisions pertaining to

these provisions) shall apply, deeming said person to be a commodity

investment sales manager. In this case, the phrase "rescind the license set

forth in Article 3" in Article 28, paragraph (1) shall be deemed to be replaced

with "order the abolition of the commodity investment sales business

activities," and the phrase "Article 6, paragraph (1), items (i) through (iv)" in

said paragraph shall be deemed to be replaced with "Article 6, paragraph (1),

items (ii) through (iv)."

(3) With regard to the application of the provisions of Article 6, paragraph (1) in

the case where the termination of commodity investment sales business

activities has been ordered pursuant to the provisions of Article 28, paragraph

(1) applied by replacing terms pursuant to the provisions of the preceding

paragraph, the person who has been ordered to engage in said abolition shall

be deemed to be a person whose license set forth in Article 3 has been

rescinded pursuant to the provisions of Article 28, paragraph (1), and the day

on which said abolition was ordered shall be deemed to be the day on which the

license set forth in Article 3 was rescinded under the provisions of Article 28,

paragraph (1).

(4) The provisions of the preceding three paragraphs shall apply mutatis

mutandis to those who engage in commodity investment advising at the time of

enforcement of this Act. In this case, the phrase "Article 6, paragraph (1)" in

paragraph (1) and the preceding paragraph shall be deemed to be replaced with

"Article 32, paragraph (2)"; the phrase "Article 28, paragraph (1)" in said

paragraphs shall be deemed to be replaced with "Article 28, paragraph (1), as

applied mutatis mutandis pursuant to Article 44"; the term "Article 3" in said

paragraphs shall be deemed to be replaced with "Article 30"; the phrase

"Articles 15 through 27 and 28 (excluding paragraph (1), item (ii))" in

paragraph (2) shall be deemed to be replaced with "Articles 34 through 42,

Articles 20 and 22 through 24, as applied mutatis mutandis pursuant to Article

43, and Articles 25 through 27 and 28 (excluding paragraph (1), item (ii)), as

applied mutatis mutandis pursuant to Article 44"; the phrase "Article 28,

paragraph (1)" in said paragraph shall be deemed to be replaced with "Article

28, paragraph (1) applied mutatis mutandis by replacing terms pursuant to the

provisions of Article 44"; "Article 3" in said paragraph shall be deemed to be

replaced with "Article 30"; the phrase "Article 6, paragraph (1), items (i)

through (iv)" in said paragraph shall be deemed to be replaced with "Article 32,

paragraph (2), items (i) through (iv)"; and the phrase "Article 6, paragraph (1),

items (ii) through (iv)" in said paragraph shall be deemed to be replaced with

"Article 32, paragraph (2), items (ii) through (iv)."

Article 3 The provisions of Articles 17 through 19 and Articles 36 through 38

shall not apply to commodity investment contracts, etc. or commodity

investment advisory contracts which have been concluded prior to the

enforcement of this Act.

Supplementary Provisions [Act No. 89 of November 12, 1993] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from the effective date of the

Administrative Procedure Act (Act No. 88 of 1993).

(Transitional Measures Concerning Adverse Disposition Pertaining to a

Consultation)

Article 2 Where, prior to the enforcement of this Act, a consultation or any other

request has been made, based on laws and regulations, to a council or any

other panel to the effect that procedures to hold hearings or grant the

opportunity for explanation prescribed in Article 13 of the Administrative

Procedure Act or any other procedures equivalent to procedures to hear

statements of opinions should be taken, with regard to the procedures for

adverse disposition pertaining to said consultation or other request, the

provisions then in force shall remain applicable, notwithstanding the

provisions of related Acts revised by this Act.

(Transitional Measures Concerning Penal Provisions)

Article 13 With regard to the application of penal provisions to acts committed

prior to the enforcement of this Act, the provisions then in force shall remain

applicable.

(Transitional Measures Associated with Adjustment of Provisions on Hearings)

Article 14 A hearing or a council for hearing (excluding those pertaining to

adverse dispositions) implemented pursuant to the provisions of Acts prior to

the enforcement of this Act or procedures for these shall be deemed to have

been implemented pursuant to the equivalent provisions of the related Acts

revised by this Act.

(Delegation to Cabinet Order)

Article 15 In addition to what is provided for in Articles 2 through 14 of the

supplementary provisions, transitional measures necessary for the enforcement

of this Act shall be specified by Cabinet Order.

Supplementary Provisions [Act No. 91 of May 12, 1995] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from the day on which 20 days have

elapsed from the day of promulgation.

Supplementary Provisions [Act No. 102 of June 20, 1997] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from the effective date of the Finance

Supervisory Agency Establishment Act (Act No. 101 of 1997).

(Transitional Measures Concerning a Disposition that Has Been Rendered by

the Minister of Finance)

Article 2 (1) A license, permission, authorization, approval, designation or any

other disposition or a notice or any other act that has been granted, given,

rendered or committed by the Minister of Finance or any other national

government organ pursuant to the provisions of the Secured Bonds Trust Act,

the Trust Business Act, the Norinchukin Bank Act, the Mutual Loan Business

Act, the Act on Simplifying Business Affairs of Banks, etc., the Act on

Additional Operation of Trust Business by a Financial Institution, the Act on

Prohibition of Private Monopolization and Maintenance of Fair Trade, the

Agricultural Cooperatives Act, the Securities and Exchange Act, the Act on

Non-Life Insurance Rating Organization of Japan, the Fisheries Cooperatives

Act, the Small and Medium-Sized Enterprise Cooperatives Act, the Act on

Financial Businesses by Cooperative, the Ship Owner's Mutual Insurance

Union Act, the Securities Investment Trust Act, the Shinkin Bank Act, the

Long-Term Credit Bank Act, the Loan Trust Act, the Small and Medium-sized

Fishery Finance Guarantee Act, the Credit Guarantee Association Act, the

Labor Bank Act, the Foreign Exchange Bank Act, the Automobile Liability

Security Act, the Agricultural Credit Guarantee Insurance Act, the Act on

Financial Institutions' Merger and Conversion, the Act on Foreign Security

Business Entities, the Deposit Insurance Act, the Act on the Promotion of

Introduction of Industry into Agricultural Regions, the Agricultural and

Fishery Cooperation Savings Insurance Act, the Banking Act, the Act on

Controls, etc. on Money Lending, the Act on Regulation, etc. of Investment

Advisory Business Pertaining to Securities, the Act on Regulation, etc. of

Mortgage Security Business, the Financial Future Transaction Act, the Act on

Regulation, etc. of Advanced Payment Certificates, the Act on Regulation of

Commodity Investment, the Act on Special Measures, etc. of the Narcotic and

Stimulation Spirit Medicine Regulation Act for Prevention of Conduct

Encouraging Illegal Conduct Relating to Regulated Medicine under

International Cooperation, the Act on Regulation of Business Pertaining to

Specified Claims, etc., the Act on Preparation, etc. of Related Acts for Reform

of Finance System and Security Exchange System, the Act on Preferred Equity

Investment by Cooperative Structured Financial Institution, the Real Estate

Specified Joint Enterprise Act, the Insurance Business Act, the Act on Special

Measures, etc. of Reorganization Procedure of Financial Institutions, the Act

on Merger between the Norinchukin Bank and Prefectural Credit Federations

of Agricultural Cooperatives, the Bank of Japan Act, or the Act on Special

Measures, etc. for Merger Procedures for Banks, etc. for Establishing Bank

Holding Companies prior to the revision by this Act (hereinafter referred to as

the "Former Secured Bonds Trust Act, etc.") shall be deemed to be a license,

permission, authorization, approval, designation or any other disposition or a

notice or any other act that has been granted, given, rendered or committed by

the Prime Minister or any other equivalent national government organ

pursuant to the equivalent provisions of the Secured Bonds Trust Act, the

Trust Business Act, the Norinchukin Bank Act, the Mutual Loan Business Act,

the Act on Simplifying Business Affairs of Banks, etc., the Act on Additional

Operation of Trust Business by a Financial Institution, the Act on Prohibition

of Private Monopolization and Maintenance of Fair Trade, the Agricultural

Cooperatives Act, the Securities and Exchange Act, the Act on Non-Life

Insurance Rating Organization of Japan, the Fisheries Cooperatives Act, the

Small and Medium-Sized Enterprise Cooperatives Act, the Act on Financial

Businesses by Cooperative, the Ship Owner's Mutual Insurance Union Act, the

Securities Investment Trust Act, the Shinkin Bank Act, the Long-Term Credit

Bank Act, the Loan Trust Act, the Small and Medium-sized Fishery Finance

Guarantee Act, the Credit Guarantee Association Act, the Labor Bank Act, the

Foreign Exchange Bank Act, the Automobile Liability Security Act, the

Agricultural Credit Guarantee Insurance Act, the Act on Financial

Institutions' Merger and Conversion, the Act on Foreign Security Business

Entities, the Deposit Insurance Act, the Act on the Promotion of Introduction

of Industry into Agricultural Regions, the Agricultural and Fishery

Cooperation Savings Insurance Act, the Banking Act, the Act on Controls, etc.

on Money Lending, the Act on Regulation, etc. of Investment Advisory Business

Pertaining to Securities, the Act on Regulation, etc. of Mortgage Security

Business, the Financial Future Transaction Act, the Act on Regulation, etc. of

Advanced Payment Certificates, the Act on Regulation of Commodity

Investment, the Act on Special Measures, etc. of the Narcotic and Stimulation

Spirit Medicine Regulation Act for Prevention of Conduct Encouraging Illegal

Conduct Relating to Regulated Medicine under International Cooperation, the

Act on Regulation of Business Pertaining to Specified Claims, etc., the Act on

Preparation, etc. of Related Acts for Reform of Finance System and Security

Exchange System, the Act on Preferred Equity Investment by Cooperative

Structured Financial Institution, the Real Estate Specified Joint Enterprise

Act, the Insurance Business Act, the Act on Special Measures, etc. of

Reorganization Procedure of Financial Institutions, the Act on Merger between

the Norinchukin Bank and Prefectural Credit Federations of Agricultural

Cooperatives, the Bank of Japan Act, or the Act on Special Measures, etc. for

Merger Procedures for Banks, etc. for Establishing Bank Holding Companies

revised by this Act (hereinafter referred to as the "New Secured Bonds Trust

Act, etc.").

(2) An application, notification or any other act that has been filed or made with

or committed toward the Minister of Finance or any other national government

organ pursuant to the provisions of the Former Secured Bonds Trust Act, etc.

prior to the enforcement of this Act shall be deemed to be an application,

notification or any other act that has been filed or made with or committed

toward the Prime Minister or any other equivalent national government organ

pursuant to the equivalent provisions of the New Secured Bonds Trust Act, etc.

(3) With regard to matters for which a report, notification, submission or any

other procedure shall be given to or taken with the Minister of Finance or any

other national government organ pursuant to the provisions of the Former

Secured Bonds Trust Act, etc. for which such procedure has not been taken

prior to the effective date of this Act, the provisions of the New Secured Bonds

Trust Act, etc. shall apply, deeming this to be the situation in which a report,

notification, submission or any other procedure has not been made to or taken

with the Prime Minister or any other equivalent national government organ

with regard to the matters for which such procedure shall be taken pursuant to

the equivalent provisions of the New Secured Bonds Trust Act, etc.

(Transitional Measures Concerning Ordinance of the Ministry of Finance)

Article 3 An order pursuant to the provisions of the Former Secured Bonds Trust

Act, etc. which is in force at the time of the enforcement of this Act shal l be in

force as an order pursuant to the equivalent provisions of the New Secured

Bonds Trust Act, etc.

(Delegation to Cabinet Order)

Article 6 In addition to what is provided for in Articles 2 through 5 of the

supplementary provisions, transitional measures necessary for the enforcement

of this Act shall be specified by Cabinet Order.

Supplementary Provisions [Act No. 105 of November 21, 1997] [Extract]

(Effective Date)

(1) This Act shall come into effect as from the day of promulgation.

Supplementary Provisions [Act No. 121 of December 12, 1997] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from the effective date of the Act on

Preparation of Relevant Financial Acts Accompanying Cancellation of

Prohibition of Establishment, etc. of Holding Companies (Act No. 120 of 1997).

Supplementary Provisions [Act No. 107 of June 15, 1998] [Extract]

(Effective Date)

Article 1 This Act shall come into effect as from December 1, 1998.

(Effect of a Disposition)

Article 188 A disposition, procedure or any other act rendered, taken or

committed pursuant to the provisions of the respective Act prior to revision

(including orders based thereon; hereinafter the same shall apply in this

Article) prior to the enforcement of this Act (with regard to the provisions

listed in the items of Article 1 of the supplementary provisions, said provisions),

for which the respective revised Act has equivalent provisions, shall be deemed

to have been rendered, taken or committed pursuant to the equivalent

provisions of the respective revised Act, unless otherwise provided for in these

supplementary provisions.

(Transitional Measures Concerning Application of Penal Provisions)

Article 189 With regard to the application of penal provisions to acts committed

prior to the enforcement of this Act (with regard to the provisions listed in the

items of Article 1 of the supplementary provisions, said provisions) and acts

committed after the enforcement of this Act in cases where the provisions then

in force shall remain applicable pursuant to the provisions of these

supplementary provisions and in cases where the provisions prior to the

revision shall remain in force pursuant to the provisions of these

supplementary provisions, the provisions then in force shall remain applicable.

(Delegation of Other Transitional Measures to Cabinet Order)

Article 190 In addition to what is provided for in Articles 2 through 146, Article

153, Article 169 and the preceding Article of the supplementary provisions,

transitional measures necessary for the enforcement of this Act shall be

specified by Cabinet Order.

Supplementary Provisions [Act No. 131 of October 16, 1998]

(Effective Date)

Article 1 This Act shall come into effect as from the effective date of the Act for

Establishment of the Financial Reconstruction Commission (Act No. 130 of

1998).

(Transitional Measures)

Article 2 (1) A license, permission, authorization, approval, designation or any

other disposition or a notice or any other act that has been granted, given,

rendered or committed by the Prime Minister or any other national