Financial Instruments and Exchange Act

A type-I small amount electronic public offering service provider (excluding a person that engages in investment management business; hereinafter the same applies in the following paragraph) is not required to notify the Prime Minister to the effect that it will start to engage in any of the businesses listed in the items of Article 35, paragraph (2), notwithstanding the provisions of Article 35, paragraph (3).

When a type-I small amount electronic public offering service provider conducts a business other than financial instruments business and the businesses prescribed in Article 35, paragraphs (1) and (2), the service provider is not required to obtain approval from the Prime Minister, notwithstanding the provisions of paragraph (4) of that Article.

The provisions of Article 36-2, paragraph (1) do not apply to the case where a type-I small amount electronic public offering service provider engages in type-I small amount electronic public offering service.

The term "type-I small amount electronic public offering service provider" as used in paragraph (3) to the preceding paragraph means a person that has obtained the registration set forth in Article 29 or the registration of change set forth in Article 31, paragraph (4) by stating in the written application for registration to the effect that the person will only engage in type-I small amount electronic public offering service from among type-I financial instruments businesses.

The term "type-I small amount electronic public offering service" as used in paragraphs (1), (2), (5) and the preceding two paragraphs means electronic public offering service (limited to handling of public offering or handling of private placement of the following securities (limited to securities not listed on a financial instruments exchange and excluding those specified by Cabinet Order; hereinafter the same applies in this paragraph) which satisfies the requirements specified by Cabinet Order as being such handling where the total issue value of the securities and the amount to be paid by the person that acquires the securities are small; hereinafter the same applies in this paragraph) or receiving of a deposit of money from customers in relation to electronic public offering service:

the securities set forth in Article 2, paragraph (1), item (ix); and

the rights set forth in Article 2, paragraph (2), item (v) or (vi) which are deemed to be securities pursuant to that paragraph (limited to those that fall under the category of electronically recorded transferable rights).

With regard to the application of the provisions of Article 29-2, paragraph (1), item (vi) to type-II small amount electronic public offering service in cases where a person that seeks to obtain the registration set forth in Article 29 seeks to only engage in type-II small amount electronic public offering service from among type-II financial instruments business, the term "an indication of this" in Article 29-2, paragraph (1), item (vi) is deemed to be replaced with "an indication of this (in the case of only engaging in the type-II small amount electronic public offering service prescribed in Article 29-4-3, paragraph (3) from among type-II financial instruments business, including an indication of this)".

The provisions of Article 36-2, paragraph (1) do not apply to the case where a type-II small amount electronic public offering service provider (meaning a person that has obtained the registration set forth in Article 29 or the registration of change set forth in Article 31, paragraph (4) by stating in the written application for registration to the effect that the person will only engage in type-II small amount electronic public offering service from among type-II financial instruments business) engages in type-II small amount electronic public offering service.

The term "type-II small amount electronic public offering service" as used in the preceding two paragraphs means, among electronic public offering service, handling of public offering or handling of private placement of securities (limited to rights set forth in Article 2, paragraph (2), item (v) or (vi) which are deemed to be securities pursuant to that paragraph (excluding those that fall under the category of electronically recorded transferable rights) and which are set forth in Article 3, item (iii) or which are not listed on a financial instruments exchange, and excluding those specified by Cabinet Order; hereinafter the same applies in this paragraph) which satisfies the requirements specified by Cabinet Order as being such handling where the total issue value of the securities and the amount to be paid by the person that acquires the securities are small.

A specially permitted intermediary service provider for unlisted securities, etc. (excluding a person that engages in investment management business; the same applies in the following paragraph) is not required to notify the Prime Minister that it has come to engage in the businesses set forth in the items of paragraph (2) of Article 35, notwithstanding the provisions of paragraph (3) of that Article.

When a specially permitted intermediary service provider for unlisted securities, etc. conducts a business other than financial instruments business and the businesses conducted pursuant to the provisions of Article 35, paragraphs (1) and (2), the service provider is not required to obtain approval from the Prime Minister, notwithstanding the provisions of paragraph (4) of that Article.

The term "specially permitted intermediary services for unlisted securities, etc." as used in paragraphs (1), (2) and the preceding two paragraphs means conducting, on a regular basis, any of the following acts from among type-I financial instruments business:

the following acts concerning securities (limited to those not listed on a financial instruments exchange, and excluding those specified by Cabinet Order):

intermediation for the sale, or the act set forth in Article 2, paragraph (8), item (ix) (excluding those conducted with general investors (meaning persons other than professional investors, etc., non-residents, the issuer of the securities, and other persons specified by Cabinet Office Order; hereinafter the same applies in this item) as the persons to which they are made, and those conducted for general investors based on solicitation of general investors);

intermediation for the purchase (excluding those conducted for general investors and those conducted with general investors as the persons to which they are made based on solicitation of general investors).

receiving a deposit of money from a customer in connection with the acts set forth in the preceding item (limited to those necessary for the settlement of transactions through the acts set forth in that item and for which the period of the deposit does not exceed the period specified by Cabinet Order).