Financial Instruments and Exchange Act

If any of the following items applies, the person who has committed the violation is subject to punishment by imprisonment for not longer than one year, a fine of not more than one million yen, or both:

the person conducts business prescribed in Article 30, paragraph (1) without obtaining authorization under the provisions of that paragraph (excluding the case where the person conducts it pursuant to the provisions of the proviso to that paragraph);

the person violates the conditions attached pursuant to the provisions of Article 30-2, paragraph (1) (including as applied mutatis mutandis pursuant to Article 87-2, paragraph (3); Article 87-3, paragraph (5); Article 106-3, paragraph (6); Article 106-10, paragraph (5); Article 106-17, paragraph (5); Article 106-24, paragraph (2); Article 155, paragraph (2); Article 156-5-5, paragraph (6); or Article 156-20-16, paragraph (4)); Article 59, paragraph (2); Article 60, paragraph (2) (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2)); Article 85, paragraph (2); or Article 156-6, paragraph (4) (including as applied mutatis mutandis pursuant to Article 156-19, paragraph (4));

the person violates the provisions of Article 31, paragraph (6);

the person violates the provisions of Article 31-2, paragraph (5); Article 33, paragraph (1); Article 33-2; Articles 41-3 through 41-5; Article 42-5; Article 42-6; or Article 66-13;

the person conducts financial instruments business or performs services prescribed in Article 35, paragraph (1) and services other than those set forth in the items of Article 35, paragraph (2), without obtaining the approval under the provisions of Article 35, paragraph (4);

the person violates a disposition for the suspension of business under Article 52, paragraph (1) (limited to the part involving the authorization referred to in Article 30, paragraph (1)) or Article 52-2, paragraph (1);

the person violates the provisions of Article 64, paragraph (2) (including as applied mutatis mutandis pursuant to Article 66-25) in allowing a person to perform the duties of a sales representative;

the person violates the provisions of Article 67-7, Article 97, or Article 102-21;

the person entrusts the self-regulatory services prescribed in Article 84, paragraph (2) to a self-regulatory organization prescribed in that paragraph without obtaining the authorization from the Prime Minster, in violation of Article 85, paragraph (1);

the person violates an order under the provisions of Article 106-7, paragraph (1) as applied mutatis mutandis pursuant to paragraph (4) of that Article, or under the provisions of Article 106-21, paragraph (1) as applied mutatis mutandis pursuant to paragraph (4) of that Article;

the person violates an order under the provisions of Article 106-28, paragraph (1) (including as applied mutatis mutandis pursuant to Article 109);

the person conducts business other than that prescribed in Article 156-24, paragraph (1) and the items of Article 156-27, paragraph (1) without obtaining the approval under the provisions of Article 156-27, paragraph (3); and

the person performs an act that is allowed only with the authorization of the Prime Minister pursuant to Article 156-28, paragraph (1), without obtaining the authorization under the provisions of that paragraph.

A person that acts with the aim of paying or receiving the difference in quotations on a financial instruments exchange market (including financial indexes calculated based on prices or interest rates, etc. of financial instruments on a financial instruments exchange market) other than through a financial instruments exchange market, is subject to imprisonment for not more than one year, a fine of not more than one million yen, or both; provided, however, that this does not preclude the application of the provisions of Article 186 of the Penal Code.

The provisions of the preceding paragraph do not apply to the following transactions:

over-the-counter derivatives transactions in which one of the parties is a financial instruments business operator (limited to one that engages in type-I financial instruments business prescribed in Article 28, paragraph (1); hereinafter the same applies in this paragraph) or a bank, cooperative financial institution, or financial institution specified by Cabinet Order as referred to in Article 33, paragraph (1);

over-the-counter derivatives transactions for which a financial instruments business operator or a bank, cooperative financial institution, or financial institution specified by Cabinet Order as referred to in Article 33, paragraph (1) conducts intermediation, brokerage, or agency; and

transactions in which one of the parties is a commodity futures transactions dealer or a person that made a notification prescribed in Article 349, paragraph (1) of the Commodity Derivatives Transaction Act.

If the officer or official of a financial instruments business operator (or the domestic representative or officer stationed at a business office or office established in Japan, if the financial instruments business operator is a foreign corporation; hereinafter the same applies in this paragraph); the officer or official of an authorized financial instruments firms association, certified financial instruments business association prescribed in Article 78, paragraph (2), or financial instruments exchange (including a provisional board member, provisional inspector, provisional director, provisional executive officer, or provisional company auditor); or the domestic representative or official of a foreign financial instruments exchange (if the foreign financial instruments exchange has a domestic office, this includes any officer stationed there) accepts a bribe in connection with that person's duties (in the case of the officer or official of a financial instruments business operator, limited to duties involved in the business of a financial instruments business operator is entrusted by an investor protection fund pursuant to the provisions of Article 79-50, paragraph (1)), or requests or promises to do so, that person is subject to imprisonment for not more than five years.

In the case referred to in the preceding paragraph, any bribe that is accepted is subject to confiscation. If all or part of a bribe cannot be confiscated, an equivalent value is to be collected.

A person that provides the bribe referred to in paragraph (1) or that offers or promises to do so is subject to imprisonment for not more than three years or by a fine of not more than three million yen.

The provisions regarding the crimes referred to in paragraph (1) of the preceding Article also apply to a person that commits a crime referred to in that paragraph outside Japan.

A crime referred to in paragraph (3) of the preceding Article is governed by the provisions of Article 2 of the Penal Code.

A person that violates the provisions of Article 72 (including as applied mutatis mutandis pursuant to Article 79 or Article 79-14); Article 77-2, paragraph (7) or (8) (including as applied mutatis mutandis pursuant to Article 77-3, paragraph (4), Article 78-7, Article 78-8, paragraph (4), or Article 79-13), Article 79-47, Article 87-8, Article 156-8, Article 156-20-7, or Article 156-70 is subject to imprisonment for not more than one year, or a fine of not more than 500 thousand yen.