Financial Instruments and Exchange Act

(Written Record of the Decision to Commence Trial Procedures)

A When the Prime Minister has made the decision under paragraph (1) of the preceding Article, the Prime Minister must, as provided by Cabinet Office Order, record the electronic or magnetic record pertaining to that decision (referred to as the "record of the decision to commence trial procedures must be made " in the following paragraph, paragraph (3) and Article 183) in writinga file stored on the computer used by the Cabinet Office (including input and output devices; the same applies hereinafter in this Section) (hereinafter, except in Article 185-12, paragraph (2), items (ii) and (iii), simply referred to as the "file" in this Section).

A written decision pertaining to a decision to commence trial procedures (hereinafter referred to asThe record of the "written decision to commence trial procedures" in the following paragraph and Article 183) must staterecord the first date for trial procedures and the place, the facts set forth in the items of paragraph (1) of the preceding Article which are connected with the administrative monetary penalty, the amount of the administrative monetary penalty that is required to be paid, and the basis for its calculation.

Trial procedures are commenced through the service of a certified copythe record of a writtenthe decision to commence trial procedures on the person that would be ordered to pay the administrative monetary paenltypenalty (hereinafter referred to as the "respondent" in this Section).

Upon being served with a certified copythe record of a writtenthe decision to commence trial procedures, the respondent must submit a written answer to this to the trial examiners without delay.

If a respondent submits, before the first date for trial procedures statedrecorded in the writtenrecord of the decision to commence trial procedures (or, if that date is changed, the new date), a written answer acknowledging the facts set forth in the items of Article 178, paragraph (1) related to the administrative monetary penalty and acknowledging the amount of the administrative monetary penalty that is required to be paid, it is not necessary to hold a date for trial procedures.

The provisions of Article 190, Article 191, Article 196, Article 197, and Article 201, paragraphs (1) through (4) In the following cases, if a trial examiner finds it appropriate, the trial examiner may, as provided by Cabinet Office Order, conduct the hearing under the provisions of the Code of Civil Procedure (Act No. 109 of 1996) apply mutatis mutandis topreceding paragraph by a method that enables the trial examiner, the respondent, and the procedures of a hearing of a witness pursuant to witness to speak with each other while recognizing each other's condition through the provisions transmission and reception of images and sound. In this case, the preceding paragraphrespondent may also question the witness by that method.

where the trial examiner finds that it is difficult for the witness to appear on the date for trial procedures due to the witness's address, age, or physical or mental condition, or other circumstances;

where the trial examiner finds, in light of the nature of the case, the witness's age or physical or mental condition, the relationship between the witness and the respondent, or other circumstances, that there is a risk that, if the witness were to make a statement in the place where the trial examiner and the respondent are present to examine the witness, the witness would be placed under pressure and have the witness's peace of mind significantly impaired; or

where the respondent has no objection.

In the case referred to in the preceding paragraph, the witness is deemed to have appeared on the date for trial procedures.

The provisions of Article 190, Article 191, Article 196, Article 197, and Article 201, paragraphs (1) through (4) of the Code of Civil Procedure (Act No. 109 of 1996) apply mutatis mutandis to the procedures of a hearing of a witness pursuant to the provisions of paragraphs (1) and (2).

In the following cases, if a trial examiner finds it appropriate, the trial examiner may, as provided by Cabinet Office Order, conduct the hearing under the provisions of the preceding paragraph by a method that enables the trial examiner and the respondent to speak with each other while recognizing each other's condition through the transmission and reception of images and sound.

where the trial examiner finds that it is difficult for the respondent to appear on the date for trial procedures due to the respondent's address, age, or physical or mental condition, or other circumstances;

where the trial examiner finds, in light of the nature of the case, the respondent's age or physical or mental condition, or other circumstances, that there is a risk that, if the respondent were to make a statement in the place where the trial examiner is present to examine the respondent, the respondent would be placed under pressure and have the respondent's peace of mind significantly impaired; or

where the respondent has no objection.

With regard to an object submitted pursuant to the provisions of the preceding paragraph (limited to the documents, etc. prescribed in Article 132-10, paragraph (1) of the Code of Civil Procedure), the provisions of Article 132-13 (excluding the items) of that Act as applied mutatis mutandis pursuant to Article 185-13 do not apply.

The provisions of Article 191, Article 197, Article 201, paragraph (1), and Article 212 ofIf a trial examiner finds it appropriate, the trial examiner may, as provided by Cabinet Office Order, conduct the hearing under the Codeprovisions of Civil Procedure apply mutatis mutandis to the preceding paragraph by a method that enables the procedures for ordering an trial examiner, the respondent, and the expert to present an expert opinion pursuant to speak with each other while recognizing each other's condition through the provisions transmission and reception of paragraph (1)images and sound. In this case, the respondent may also question the expert by that method.

The provisions of Article 191, Article 197, Article 201, paragraph (1), and Article 212 of the Code of Civil Procedure apply mutatis mutandis to the procedures for ordering an expert to present an expert opinion pursuant to the provisions of paragraph (1).

A decision referred to in paragraphs (1), (2), (4) through (8), and (10) to the preceding paragraph must be issued in writing based on the draft decision submitted by a trial examiner pursuant to the provisions of the preceding Article. In this case, the Prime Minister must, as provided by Cabinet Office Order, record the electronic or magnetic record pertaining to that decision in the file.

The written decision electronic or magnetic record pertaining to the decision prescribed in the preceding paragraph must staterecord the facts found by the Prime Minister and the application of laws and regulations to those facts (for a decision under paragraph (1), (2), (4) through (8), or (10) through (17), including the basis for the calculation of the administrative monetary penalty and the due date of payment).

The due date forof payment as referred to in the preceding paragraph is the day on which two months have elapsed since the date on which a certified copy of, with regard to the written decision electronic or magnetic record provided for in that paragraph (limited to one for a decision under paragraphs (1), (2), (4) through (8), and (10) through (17)), a document under the provisions of Article 185-10-2 is issued or a notice under the provisions of Article 109-2, paragraph (1), main text of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10 is issued.

A decision provided for in paragraph (19) becomes effective through the service of a certified copy of the written decisionthe electronic or magnetic record related to the decision on the respondent.

Notwithstanding the provisions of the preceding paragraph, if, at the time of the decision referred to in paragraph (1) (limited to a decision connected with Article 178, paragraph (1), item (iv) or (xi)) or a decision as referred to in paragraph (6), paragraph (7), paragraph (10), paragraph (11), paragraph (14) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred), or paragraph (15) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred), prosecution has been instituted for the same case and that case is still pending before the court, the decision comes into effect once the judicial decision in that case becomes final and binding; provided, however, that if the final and binding judicial decision in that case imposes a fine on the person subject to the decision, the decision comes into effect once a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under the provisions of paragraph (6) of the following Article is served.

Notwithstanding the provisions of paragraph (22), if, at the time of the decision referred to in paragraph (1) (limited to a decision connected with any of Article 178, paragraph (1), items (xii) through (xvi)), paragraph (14) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) through (xvi) to have occurred) and paragraph (15) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) through (xvi) to have occurred), prosecution has been instituted for the same case and that case is still pending before the court, the decision comes into effect once the judicial decision in that case becomes final and binding; provided, however, that if the final and binding judicial decision in that case imposes the confiscation of the properties set forth in the items of Article 198-2, paragraph (1) or the collection of the value of the properties set forth in the items of Article 198-2, paragraph (1) against the person subject to the decision, the decision comes into effect once a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under paragraph (7) of the following Article is served.

The provisions of the main clause of paragraph (23) and the main clause of the preceding paragraph do not apply if a certified copy of the written decisionthe electronic or magnetic record in respect of the decision referred to in paragraphs (1), (6), (7), (10), (11), (14) or (15) is not served as of the time the judicial decision in the same case becomes final and binding.

The provisions of the proviso to paragraph (23) do not apply if a certified copy of the written decisionthe electronic or magnetic record in respect of the decision referred to in paragraph (1) (limited to a decision connected with Article 178, paragraph (1), item (iv) or (xi)), paragraph (6), paragraph (7), paragraph (10), paragraph (11), paragraph (14) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred) or paragraph (15) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred) is not served as of the time that a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under paragraph (6) of the following Article is served.

The provisions of the proviso to paragraph (24) do not apply if a certified copy of the written decisionthe electronic or magnetic record in respect of the decision referred to in paragraph (1) (limited to a decision connected with Article 178, paragraph (1), items (xii) through (xvi)), paragraph (14) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) through (xvi) to have occurred), or paragraph (15) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) through (xvi) to have occurred) is not served as of the time that a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under paragraph (7) of the following Article is served.

Notwithstanding the provisions of paragraph (21), in the case referred to in the proviso to paragraph (23) or the proviso to paragraph (24), the due date for the payment of an administrative monetary penalty is the day on which two months have elapsed since the day on which a certified copy of a document , with regard to the electronic or magnetic record concerning a disposition for changes under the provisions of paragraph (6) or (7) of the following Article, a document under the provisions of Article 185-10-2 is dispatched or a notice under the provisions of Article 109-2, paragraph (1), main text of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10 is dispatched.

If the validity of the decision referred to in paragraph (1) of the preceding Article (limited to a decision connected with Article 178, paragraph (1), item (iv) or (xi); hereinafter the same applies in paragraph (6)) or the validity of the decision referred to in Article 185-7, paragraph (6), (7), (10), (11), or (14) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred; the same applies in paragraph (6) of this Article), or Article 185-7, paragraph (15) (but only if the Prime Minister finds a fact set forth in Article 178, paragraph (1), item (iv) or (xi) to have occurred; the same applies in paragraph (6) of this Article) is suspended pursuant to the main clause of the preceding paragraph, and the final and binding judicial decision in the case imposes a fine on the person subject to that decision, the Prime Minister must suspend the validity of the decision until a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under paragraph (6) is served.

If the validity of the decision referred to in Article 185-7, paragraph (1) (limited to a decision connected with any of Article 178, paragraph (1), items (xii) through (xvi); the same applies in paragraph (7) of this Article), Article 185-7, paragraph (14) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) throughitem (xvi) to have occurred; the same applies in paragraph (7) of this Article), or Article 185-7, paragraph (15) (but only if the Prime Minister finds a fact set forth in any of Article 178, paragraph (1), items (xii) through (xvi) to have occurred; the same applies in paragraph (7) of this Article) is suspended pursuant to the main clause of paragraph (1), and the final and binding judicial decision in the case imposes a confiscation of the properties set forth in the items of Article 198-2, paragraph (1) or the collection of the value of the properties set forth in the items of Article 198-2, paragraph (1) against the person subject to the decision, the Prime Minister must suspend the validity of the decision until a certified copy of a documentthe electronic or magnetic record concerning a disposition for changes under paragraph (7) is served.

Notwithstanding the provisions of paragraph (21) of the preceding Article and the preceding paragraph, if the validity of the decision referred to in paragraph (1), (6), (7), (10), (11), (14) or (15) of that Article is suspended pursuant to the provisions of paragraph (2) or (3) of this Article, the due date for the payment of an administrative monetary penalty payment is the day on which two months have elapsed since the day that a certified copy of a document , with regard to the electronic or magnetic record concerning a disposition for changes under the following paragraph or paragraph (7), a document under the provisions of Article 185-10-2 is dispatched or a notice under the provisions of Article 109-2, paragraph (1), main text of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10 is dispatched.

A When the Prime Minister has made a disposition for changes under paragraph (6) or (7) , the Prime Minister must be made , as provided by Cabinet Office Order, record the electronic or magnetic record pertaining to that disposition in writingthe file.

A disposition for changes under paragraph (6) or (7) becomes effective through the service of a certified copy of a documentthe electronic or magnetic record concerning that disposition.

(Documents , etc. to Be Served)

The documents or electronic or magnetic records that are required to be served other than those prescribed in this section are specified by Cabinet Office Order.

(Application, Mutatis Mutandis of Provisions of Code of Civil Procedure) Concerning Service

The provisions of ArticleArticles 99, Article 100, paragraph (1), Article through 101, and Articles 102-2 through 108109-4 of the Code of Civil Procedure apply mutatis mutandis to the service of documents or electronic or magnetic records. In this case, in these provisions, the term "the court in charge of the case" is deemed to be replaced with "the Prime Minister or a trial examiner"; in Article 100, paragraph (1) of that Code, the term "the court" is deemed to be replaced with "the Prime Minister or a trial examiner"; in Article 101, paragraph (12) of that CodeArticle, the term "a court enforcement officerthe Rules of the Supreme Court" is deemed to be replaced with "an official ofCabinet Office Order", the Financial Services Agency"; phrase "the court's computer files" is deemed to be replaced with "the file (meaning the file prescribed in Article 104179, paragraph (1) of that Code, the Financial Instruments and Exchange Act; the same applies in Article 109)", and the phrase "party, legal representative, or litigation representativethe paper document referred to in that paragraph" is deemed to be replaced with "respondent or representative of the paper document referred to in the respondent" and preceding paragraph"; in Article 101, paragraph (1) of that Code, the phrase "theterm "a court enforcement officer" is deemed to be replaced with "an official who handles the affairs of trial procedures"; in charge Article 104, paragraph (1) of that Code, the case" phrase "party, legal representative, or litigation representative" is deemed to be replaced with "the Prime Ministerrespondent or a trial examinerrepresentative of the respondent"; in Article 107, paragraph (1) of that Code, the term "the court clerk" is deemed to be replaced with "an official of who handles the Financial Services Agencyaffairs of trial procedures"; in item (iii) of that paragraph, the term "the case record" is deemed to be replaced with "the record of the case"; and in Article 108 of that Code, the term "the presiding judge" is deemed to be replaced with "the Prime Minister or the chief trial examiner (or a trial examiner, in the case of the proviso to Article 180, paragraph (1) of the Financial Instruments and Exchange Act)"; in Article 109-2, paragraphs (1) and (2) and Article 109-3, paragraph (1), item (i) of that Code, the term "the Rules of the Supreme Court" is deemed to be replaced with "Cabinet Office Order"; and in Article 109-4, paragraph (1) of that Code, the phrase "a person stated in the items of Article 132-11, paragraph (1)" is deemed to be replaced with "a representative (limited to a person who is an attorney-at-law, legal professional corporation, or attorney-at-law and registered foreign lawyer joint corporation)" and the phrase "the provisions of Article 109-2, paragraph (1)" is deemed to be replaced with "the provisions of that paragraph".

Service under the provisions of Article 185-7, paragraph (22) and Article 185-8, paragraph (10) is made, notwithstanding the provisions of Article 109 of the Code of Civil Procedure as applied mutatis mutandis pursuant to the preceding Article, by means of either a document stating the particulars recorded in the electronic or magnetic record pertaining to the decision prescribed in Article 185-7, paragraph (19) or the electronic or magnetic record pertaining to a disposition for changes under Article 185-8, paragraph (6) or (7), the content of which a staff member who handles the affairs of trial procedures has certified, by the method specified by Cabinet Office Order, to be identical to the particulars recorded in those electronic or magnetic records, or the method under the provisions of the main text of Article 109-2, paragraph (1) of that Act as applied mutatis mutandis pursuant to the preceding Article (limited to a case in which service may be made under that paragraph).

the domicile or residence of the person to be served, or the place where to serve is unknown (excluding a case in which service may be made pursuant to the provisions of Article 109-2, paragraph (1) of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10);

it is not possible to make the service pursuant to the provisions of Article 107, paragraph (1) of the Code of Civil Procedure as applied mutatis mutandis pursuant to the preceding Article 185-10;

with regard to service of a document that must be made in a foreign country, it is not possible to make the service through the means prescribed in Article 108 of the Code of Civil Procedure as applied mutatis mutandis pursuant to the preceding Article 185-10, or in a case that is found not possible to make the service even through those means; or

even after six months have elapsed since the competent government agency of a foreign country is issued a request to make the service pursuant to the provisions of Article 108 of the Code of Civil Procedure as applied mutatis mutandis pursuant to the preceding Article 185-10, a document certifying that the agency has made the service havehas not been sent.

Service by publication is made , in accordance with the categories set forth in the following items, by a placing the particulars specified in the relevant item in a state where they can be viewed by many and unspecified persons by the method specified by Cabinet Office Order, and by taking a measure of either posting made a document stating those particulars on the notice board of the Financial Services Agency indicating that the documents that are required toor placing in a state where they can be served will be delivered to the person that is to be served with them at any timeviewed those particulars as displayed on the screen of a computer installed at the Financial Services Agency.

Service by publication of documents: that a staff member who handles the affairs of trial procedures will keep the documents to be served and deliver them to the person to be served at any time;

Service by publication of electronic or magnetic records: that a staff member who handles the affairs of trial procedures will, with regard to the particulars recorded in the electronic or magnetic record to be served, deliver to the person to be served at any time a document under the provisions of Article 109 of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10 or a document under the provisions of the preceding Article, or take the measure prescribed in the main clause of Article 109-2, paragraph (1) of that Act as applied mutatis mutandis pursuant to Article 185-10 and also issue the notice under the provisions of the main clause of that paragraph.

Service by publication becomes effective after two weeks have elapsed from the day on which the posting under the provisions ofmeasure prescribed in the preceding paragraph was madecommenced.

(Use of an Electronic Data Processing System for Disposition Notices)Inspection, etc. of Case Records

When an official of the Financial Services Agency uses an electronic data processing system prescribed in Article 6, paragraph (1) of the Act on the Promotion of Administration Using Information and Communications Technology (Act No. 151 of 2002) pursuantAfter a decision to the provisions of Article 7, paragraph (1) of that Act to conduct administrative affairs involvingcommence trial procedures is issued, an interested party may file a disposition notice, etc. prescribed in Article 3, item (ix) of that Act, which is to be servedrequest with a document pursuant to the provisions of this SectionPrime Minister to inspect or Cabinet Office Order, the official must usecopy the electronic data processing system to record the particulars concerning the service undernon-electronic or non-magnetic case records (meaning the provisions of Article 100, paragraph (1)part of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185-10,case records excluding the electronic or magnetic case records prescribed in a file that is stored on a computer (this includes an input or output device) used by the Financial Services Agency in lieu item (i) of preparing and submitting a document that states those particularsthe following paragraph).

After a decision to commence trial procedures is issued, an interested party may, as provided by Cabinet Office Order, file a request with the Prime Minister to carry out the following acts:

inspecting the content of the electronic or magnetic case records (meaning the part of the case records concerning the particulars recorded in a file pursuant to the provisions of this Act or other laws and regulations; the same applies in the following item) as displayed by the method specified by Cabinet Office Order;

copying the particulars recorded in the electronic or magnetic case records by the method of recording them, using an electronic data processing system specified by Cabinet Office Order, in a file stored on a computer used by that person, or by any other method specified by Cabinet Office Order.

delivering a document stating all or part of the particulars recorded in the electronic or magnetic record pertaining to the decision prescribed in Article 185-7, paragraph (19), the content of which a staff member who handles the affairs of trial procedures has certified, by the method specified by Cabinet Office Order, to be identical to those particulars, or providing an electronic or magnetic record that records all or part of the particulars recorded in the electronic or magnetic record pertaining to the decision prescribed in that paragraph, the content of which a staff member who handles the affairs of trial procedures has certified, by the method specified by Cabinet Office Order, to be identical to those particulars, by the method of recording it, using an electronic data processing system specified by Cabinet Office Order, in a file stored on a computer used by that person, or by any other method specified by Cabinet Office Order.

When a request under the preceding two paragraphs is made, the Prime Minister may not refuse the request, unless there is a risk of detriment to the interests of a third party or unless there are any other legitimate grounds for refusal.

(Inspection Application, Mutatis Mutandis of Case Records)Provisions of Code of Civil Procedure Concerning Motions or Statements

After a decision With regard to petitions and other statements in trial procedures, the provisions of Article 132-10, Article 132-11 (excluding the items of paragraph (1)), Article 132-12 (excluding the items of paragraph (1)), and Article 132-13 (excluding the items) of the Code of Civil Procedure apply mutatis mutandis. In this case, in these provisions, "proceedings for a civil action" and "civil litigation proceedings" are deemed to commence be replaced with "trial procedures is issued, an interested party may file a request ", "the Rules of the Supreme Court pursuant to their Rules" with "Cabinet Office Order", "the court clerk" with "the staff member who handles the affairs of trial procedures", and "information (excluding the information specified in the following items in the cases stated in those items)" with "information"; in Article 132-10, paragraph (1) of that Act, "with the Prime Minister court" is deemed to inspect be replaced with "with the Prime Minister or copy a trial examiner", "the case records, court's presiding judge, authorized judge, commissioned judge, or to be issued a certified copy court clerk" with "a staff member who handles the affairs of trial procedures", and "the written decision court's computer files" with "the file (meaning the file prescribed in respect Article 179, paragraph (1) of a decision prescribedthe Financial Instruments and Exchange Act; the same applies hereinafter in this Chapter)"; in paragraph (3) of that Article, "arrive at the court" is deemed to be replaced with "arrive at the Prime Minister or a trial examiner"; in Article 185-7132-11, paragraph (19), or an extract 1) of that Act, "A person as stated in one of the following items" is deemed to be replaced with "A representative (limited to one that is an attorney-at-law, legal professional corporation, or attorney-at-law and registered foreign lawyer joint corporation; the same. In such applies in the following paragraph and paragraph (3))" and "motions and statements in a case, the Prime Minister may not refuse as provided in that item" with "motions and statements"; in paragraph (2) of that Article, "The persons stated in the items of the request, unless preceding paragraph" is deemed to be replaced with "The representatives", and in paragraph (3) of that Article, "a person stated in an item of that paragraph" with "a representative" and "a computer used by the inspection or issuance would be detrimental court" with "a computer used by the Cabinet Office"; and in Article 132-13 of that Act, "submitted to the interests of a third party or unless there are any other legitimate grounds for refusalcourt" is deemed to be replaced with "submitted to the Prime Minister or a trial examiner".

If a witness or expert who has taken an oath pursuant to the provisions of Article 201, paragraph (1) of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185, paragraph (24) or Article 185-4, paragraph (34), gives a false statement or presents a false expert opinion, that witness or expert is subject to imprisonment for not less than three months but not more than ten years.

a person that, in violation of an order under Article 201, paragraph (1) of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 185, paragraph (24) or Article 185-4, paragraph (34) issued to a witness or an expert, fails to take an oath;