Financial Instruments and Exchange Act

If litigation is pending with regard to a dispute related to financial instruments transaction services between the parties to a dispute related to financial instruments transaction services, and if any of the following grounds exist and the parties to the dispute related to financial instruments transaction services file a joint petition, the court in charge of the case may decide to suspend the court proceedings for a fixed period of no longer than four months:

dispute resolution procedures have been implemented for a dispute related to financial instruments transaction services, between the parties to the relevant dispute related to financial instruments transaction services; and

beyond the case referred to in the preceding item, the parties to the dispute related to financial instruments transaction services reach an agreement to endeavor to resolve the dispute related to financial instruments transaction services through dispute resolution procedures.

The court in charge of the case may rescind the decision referred to in the preceding paragraph at any time.

No appeal may be entered against a decision dismissing the petition referred to in paragraph (1) or a decision rescinding the decision referred to in paragraph (1).

A designated dispute resolution organization must make the register of members and firms involved in financial instruments transactions available for public inspection.

A person that is not a designated dispute resolution organization (other than a person that has obtained the designation under Article 52-62, paragraph (1) of the Banking Act or any other person specified by Cabinet Order as being similar thereto) must not use a term in its name or trade name which could give rise to the misconception that it is a designated dispute resolution organization.

If a particular set forth in Article 156-40, paragraph (1), items (ii) through (iv) changes, the designated dispute resolution organization must notify the Prime Minister of this.

If the Prime Minister is notified of a change in the trade name or name of a designated dispute resolution organization or in the location of its principal business office or office, the Prime Minister must give public notice of this in the Official Gazette.

If a designated dispute resolution organization falls under any of the following items, it must notify the Prime Minister of this pursuant to the provisions of Cabinet Office Order:

it concludes a basic contract for the implementation of dispute resolution procedures with a person or firm involved in financial instruments transactions, or it terminates such a basic contract for the implementation of dispute resolution procedures; and

cases other than what is set forth in the preceding item, which are specified by Cabinet Office Order.

Each business year, a designated dispute resolution organization must prepare a report on the dispute resolution services, etc. in that business year and submit it to the Prime Minister.

The particulars to be stated in the report referred to the preceding paragraph, the submission date, and other necessary particulars are specified by Cabinet Office Order.

If the Prime Minister finds it to be necessary for the fair and appropriate execution of dispute resolution services, etc., the Prime Minister may order a designated dispute resolution organization to make reports or submit materials relevant to its business, or may have relevant officials enter the business office, office, or any other facilities of the designated dispute resolution organization and ask questions about the state of the business of the designated dispute resolution organization or to inspect its books, documents, and any other articles.

If the Prime Minister finds it to be particularly necessary for the fair and appropriate execution of dispute resolution services, etc., the Prime Minister may, to the extent necessary, order a designated dispute resolution organization's member person or firm involved in financial instruments transactions or the person that a designated dispute resolution organization has entrusted with its business, to make reports or submit materials, or may have relevant officials enter the business office, office, or any other facilities of those persons, ask questions about the state of the business of the designated dispute resolution organization, or inspect their books, documents, and any other articles.

If the Prime Minister finds it to be necessary for ensuring the fair and appropriate execution of dispute resolution services, etc. concerning a designated dispute resolution organization's operation of dispute resolution services, etc., the Prime Minister may, to the extent necessary, order the designated dispute resolution organization to take measures that are necessary for improving its business operations.

If a designated dispute resolution organization falls under any of the following items, the Prime Minister must consult with the Minister of Justice before seeking to give the order under the preceding paragraph:

it comes to no longer satisfy the requirements set forth in Article 156-39, paragraph (1), items (v) through (vii) (limited to the part that involves the operation of dispute resolution procedures, the requirement set forth in item (vii) of that paragraph involving the criteria set forth in the items of Article 156-44, paragraph (4) or the items of paragraph (5) of that Article; hereinafter the same applies in this item), or it is found to be likely that it will come to no longer satisfy the requirements set forth in Article 156-39, paragraph (1), items (v) to (vii); or

it violates the provisions of Article 156-42, Article 156-43, Article 156-46, or Article 156-50 (but only if such violation is related to the operation of dispute resolution procedures).

A designated dispute resolution organization must obtain the authorization of the Prime Minister if it seeks to suspend (excluding suspension on the grounds prescribed in the following paragraph) or discontinue the whole or part of the dispute resolution services, etc.

If a designated dispute resolution organization suspends all or part of its dispute resolution services, etc. due to a natural disaster or for any other compelling reason, it must immediately notify the Prime Minister of this, indicating that it has done so and giving the reason. The same applies when the designated dispute resolution organization recommences all or a part of the dispute resolution services, etc. so suspended.

A designated dispute resolution organization that obtains the authorization for suspension or discontinuation under paragraph (1) or that implements the suspension referred to in the preceding paragraph must notify a party for which complaint processing procedures or dispute resolution procedures have been implemented as of the day of the suspension or discontinuation (if the designated dispute resolution organization has been entrusted with business by another designated dispute resolution organization or by a person that has obtained a designation under the provisions of other Acts which is specified by Cabinet Order as being connected with business equivalent to dispute resolution services, etc. (hereinafter collectively referred to as an "entrusting dispute resolution organization" in this paragraph), this includes procedures for processing complaints for the entrusting dispute resolution organization in connection with that entrustment and procedures for resolving disputes that have been implemented as of the day of the suspension or discontinuation; the same applies in paragraph (3) of the following Article), the member persons and firms involved in financial instruments transactions that are not parties, and other designated dispute resolution organizations, of the suspension or discontinuation, within two weeks from the day of the suspension or discontinuation. The same applies if the designated dispute resolution organization recommences all or a part of dispute resolution services, etc. so suspended.

If a designated dispute resolution organization falls under any of the following items, the Prime Minister may rescind the designation under Article 156-39, paragraph (1) or order the suspension of all or part of its business during a fixed period of no longer than six months:

it comes to no longer satisfy the requirements set forth in Article 156-39, paragraph (1), items (ii) through (vii), or it is discovered not to have fallen under any of the items of that paragraph at the time it obtained the designation;

it has obtained the designation under Article 156-39, paragraph (1) by wrongful means; or

it violates a law or regulation or a disposition based on a law or regulation.

If a designated dispute resolution organization falls under any of the following items, the Prime Minister must consult with the Minister of Justice before seeking to issue a disposition or order under the preceding paragraph:

it comes to no longer satisfy the requirements set forth in Article 156-39, paragraph (1), items (v) through (vii) (limited to the part that involves the operation of dispute resolution procedures; the requirement set forth in item (vii) of that paragraph is limited to that which is related to the criteria set forth in the items of Article 156-44, paragraph (4) or the items of paragraph (5) of that Article; hereinafter the same applies in this item), or it is discovered not to have satisfied the requirements set forth in Article 156-39, paragraph (1), items (v) through (vii) at the time it obtained the designation under Article 156-39, paragraph (1); or

it violates the provisions of Article 156-42, Article 156-43, Article 156-46, or Article 156-50 (but only if that violation is related to the operation of dispute resolution procedures).

A person that is issued a disposition for the rescission of a designation under Article 156-39, paragraph (1) or an order for the suspension of all or part of its business pursuant to the provisions of paragraph (1) must notify a party for which complaint processing procedures or dispute resolution procedures have been implemented as of the day of that disposition or order, the member persons and firms involved in financial instruments transactions that are not parties, and other designated dispute resolution organizations, that it has been issued the disposition or order, within two weeks from the day of the disposition or order.

If the Prime Minister rescinds a designation under Article 156-39, paragraph (1) pursuant to the provisions of paragraph (1), the Prime Minister must give public notice of this in the Official Gazette.