Financial Instruments and Exchange Act

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" in the following paragraph, paragraph (3) and Article 183) in a 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).

The record of the decision to commence trial procedures must record 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 the record of the decision to commence trial procedures on the person that would be ordered to pay the administrative monetary penalty (hereinafter referred to as the "respondent" in this Section).

A respondent must be ordered to appear on the first date for trial procedures.

Trial procedures (other than the decision to commence trial procedures and a decision under Article 185-7, paragraph (19)) are conducted by a panel composed of three trial examiners; provided, however, that in a simple case, the procedures are conducted by a single trial examiner.

For each trial case, the Prime Minister must designate the trial examiners composing the panel referred to in the main clause of the preceding paragraph, or the single trial examiner referred to in the proviso to that paragraph.

If the Prime Minister decides to have a panel conduct trial procedures, the Prime Minister must designate one chief trial examiner from among the trial examiners designated pursuant to the provisions of the preceding paragraph.

The Prime Minister may not designate a person that has participated in the investigation of the case as a trial examiner.

If the trial examiners find it appropriate, they may, after hearing the opinion of the respondent, conduct trial procedures, pursuant to the provisions of Cabinet Office Order, by a method that enables the trial examiners and the respondent to converse while mutually recognizing each other's condition through the transmission and reception of video and audio.

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

A respondent may appoint as its representative an attorney-at-law, legal professional corporation, attorney-at-law and registered foreign lawyer joint corporation, or an appropriate person that has been approved by the Prime Minister.

The Prime Minister may have relevant officials the Prime Minister has designated (hereinafter each of those officials is referred to as a "designated official" in this Article) participate in trial procedures.

A designated official may attend trial procedures, and offer evidence and perform other necessary acts.

A designated official may, when finding it necessary to change any facts listed in the items of Article 178, paragraph (1), the application of laws or regulations, the amount of administrative monetary penalty to be paid or the basis for its calculation (limited to the extent specified by Cabinet Office Order), claim that the change be made; provided, however, that this does not apply if the change will impair the interests of the respondent.

Dates for trial procedures are opened to the public; provided, however, that this does not apply if it is found to be necessary not to do so in the public interest.

Upon being served with the record of the 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 recorded in the record 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.

A respondent may state an opinion when appearing on the date for trial procedures.

If a trial examiner finds it necessary, the trial examiner may request the respondent to state an opinion.

A trial examiner may order a witness to appear and conduct a hearing of the witness, at the petition of the respondent or ex officio. In such a case, the respondent may also question the witness.

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, the respondent, and the witness to speak with each other while recognizing each other's condition through the transmission and reception of images and sound. In this case, the respondent 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).

A trial examiner may conduct a hearing of the respondent at the petition of the respondent or ex officio.

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.

A respondent may submit documentary evidence or an article of evidence during the course of trial procedures; provided, however, that if the trial examiners designate a reasonable period for the respondent to submit documentary evidence or an article of evidence, the respondent must submit it within that designated period.

Trial examiners may order the possessor of a document or other articles to submit that article and retain the submitted article, at the petition of the respondent or ex officio.

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.

Trial examiners may order a person with relevant expertise to present an expert opinion, at the petition of the respondent or ex officio.

If trial examiners order an expert to appear in order to conduct a hearing, the respondent may also ask questions to that expert.

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, the respondent, and the expert to speak with each other while recognizing each other's condition through the transmission and reception of 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).

Trial examiners may enter the business office of a persons concerned in a case and other necessary place to inspect the books, documents, and any other articles, at the petition of the respondent or ex officio.

After the completion of trial procedures, trial examiners must prepare a draft decision on a trial case and submit the draft decision to the Prime Minister.