Financial Instruments and Exchange Act

In the following cases, the Prime Minister must issue public notice indicating as follows, pursuant to the provisions of Cabinet Office Order:

the Prime Minister rescinds the registration referred to in Article 29 or Article 33-2 or the authorization referred to in Article 30, paragraph (1), or orders the suspension of all or a part of the business pursuant to the provisions of Article 52, paragraph (1) or Article 52-2, paragraph (1);

the Prime Minister orders the suspension of all or a part of the business pursuant to the provisions of Article 53, paragraph (2); or

the Prime Minister rescinds the registration referred to in Article 29 or Article 33-2 pursuant to the provisions of Article 52, paragraph (4); Article 52-2, paragraph (3); Article 53, paragraph (3); or the preceding Article.

If the registration referred to in Article 29 or Article 33-2 ceases to be effective pursuant to the provisions of Article 50-2, paragraph (2) or (11) or if the Prime Minister rescinds the registration referred to in Article 29 or Article 33-2 pursuant to the provisions of Article 52, paragraph (1) or (4); Article 52-2, paragraph (1) or (3); Article 53, paragraph (3); or Article 54; the Prime Minister must delete that registration.

If the Prime Minister rescinds the authorization referred to in Article 30, paragraph (1) pursuant to the provisions of Article 52, paragraph (1) or the authorization referred to in Article 30, paragraph (1) pursuant to the provisions of Article 52, paragraph (3), the Prime Minister must delete the supplementary note indicating that the authorization provided for in Article 30, paragraph (2) has been given.

The provisions of Article 50-2, paragraph (8) apply mutatis mutandis to a person that was a financial instruments business operator, etc. if that financial instruments business operator, etc. dissolves or discontinues financial instruments business, etc., or has the registration referred to in Article 29 or Article 33-2 rescinded pursuant to the provisions of Article 52, paragraph (1); Article 52-2, paragraph (1); Article 53, paragraph (3); or Article 54. In such a case, the person that was the financial instruments business operator, etc. is deemed to still be a financial instruments business operator, etc. to the extent required to complete customer transactions, or to return or transfer customer property to customers.

Except in a case to which the provisions of the preceding paragraph are applicable, the provisions of Article 50-2, paragraph (8) apply mutatis mutandis to the customer transactions involved in the business of a financial instruments business operator if a financial instruments business operator that has obtained the authorization referred to in Article 30, paragraph (1) discontinues the business to which that authorization concerns or has that authorization rescinded pursuant to the provisions of Article 52, paragraph (1). In such a case, the financial instruments business operator is deemed to still be registered under Article 30, paragraph (1) to the extent required to complete customer transactions involved in that business.

When the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order a financial instruments business operator, etc., a person that conducts transactions with a financial instruments business operator, etc., a bank, etc. in which a financial instruments business operator, etc. (excluding a registered financial institution) holds the majority of the voting rights held by all the shareholders, etc. (hereinafter such a bank, etc. is referred to as a "specified subsidiary corporation" in this paragraph), a holding company that has a financial instruments business operator, etc. as its subsidiary company (meaning a subsidiary company as prescribed in Article 29-4, paragraph (4); hereinafter the same applies in this Article), or the person that a financial instruments business operator, etc. has entrusted with its business (including a person that has received entrustment from the person (including entrustment at two or more degrees of separation from the original entrustment); hereinafter the same applies in this paragraph), to submit reports or materials that should serve as a reference in connection with the business or assets of the financial instruments business operator, etc. (but may only order a specified subsidiary corporation submit reports or materials that should serve as a reference in connection with the assets of the financial instruments business operator, etc. (excluding a registered financial institution)), and may have the relevant officials inspect the state of the business or assets, or the books, documents, and any other articles, of a financial instruments business operator, etc., a specified subsidiary corporation, a holding company that has a financial instruments business operator, etc. as its subsidiary company, or the person that a financial instruments business operator, etc. has entrusted with its business (but may only have the relevant officials inspect a specified subsidiary corporation as is necessary in connection with the assets of the financial instruments business operator, etc. (excluding a registered financial institution), and may only have the relevant officials inspect a holding company that has a financial instruments business operator, etc. as its subsidiary company, or the person that a financial instruments business operator, etc. has entrusted with its business, as is necessary in connection with the business or assets of the financial instruments business operator, etc.).

When the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order the major shareholder (meaning a major shareholder as provided for in Article 29-4, paragraph (2); hereinafter the same applies in this paragraph) of a financial instruments business operator (limited to one engaged in type-I financial instruments business, investment management business, or cryptoasset trading business, and excluding a foreign corporation; hereinafter the same applies in this paragraph) or the major shareholder of a holding company that has a financial instruments business operator as its subsidiary company to submit a notification or take measures referred to in Articles 32 through 32-3 (this means Article 32, paragraph (1) or (2); Article 32-2, paragraph (1); or Article 32-3, paragraph (1) as applied mutatis mutandis pursuant to Article 32-4 in the case of the major shareholder of a holding company that has a financial instruments business operator as its subsidiary company; hereinafter the same applies in this paragraph), and to submit reports or materials that should serve as a reference in connection with the business or assets of that financial instruments business operator, and may have the relevant officials inspect documents or other articles of such a major shareholder (but only as is necessary in connection with the notification or measures referred to in Articles 32 through 32-3 or the business or assets of that financial instruments business operator).

Except in the case provided for in paragraph (1), when the Prime Minister finds it to be necessary and appropriate for ensuring compliance with the provisions of Article 36, paragraph (1), the Prime Minister may order the parent financial institution, etc. (meaning a parent financial institution, etc. provided for in Article 36, paragraph (3); hereinafter the same applies in this paragraph) or subsidiary financial institution, etc. (meaning a subsidiary financial institution, etc. provided for in Article 36, paragraph (4); hereinafter the same applies in this paragraph) of a specified financial instruments business operator, etc. (meaning a specified financial instruments business operator, etc. provided for in Article 36, paragraph (2); hereinafter the same applies in this paragraph) to submit reports or materials that should serve as a reference in connection with the business or assets of the specified financial instruments business operator, etc., and may have the relevant officials inspect the state of the business or assets, or the books, documents, and any other articles, of the parent financial institution, etc. or the subsidiary financial institution, etc. of the relevant specified financial instruments business operator, etc.

In a case other than what is provided for in paragraph (1), when the Prime Minister finds it to be necessary and appropriate for ensuring compliance with Article 44-3, the Prime Minister may order the parent bank, etc. (meaning a parent bank, etc. provided for in Article 31-4, paragraph (3); hereinafter the same applies in this paragraph) or subsidiary bank, etc. (meaning a subsidiary bank, etc. provided for in Article 31-4, paragraph (4); hereinafter the same applies in this paragraph) of a financial instruments business operator to submit reports or materials that should serve as a reference in connection with the business or assets of the financial instruments business operator, and may have the relevant officials inspect the state of the business or assets, or the books, documents, and any other articles, of the parent bank, etc. or subsidiary bank, etc. of the relevant financial instruments business operator.

Beyond what is provided for in Article 49-5, if the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order a financial instruments business operator to keep the portion of its assets that is specified by Cabinet Order within Japan.

Before seeking to refuse an Article 29 or Article 33-2 registration, an Article 30, paragraph (1) authorization, or an Article 31, paragraph (4) registration of a change, the Prime Minister must notify the applicant for registration or the financial instruments business operator, and have the relevant officials conduct a hearing regarding the applicant for registration or the financial instruments business operator.

Irrespective of the category of proceeding for hearing statements of opinion under Article 13, paragraph (1) of the Administrative Procedure Act, before seeking to issue a disposition based on the provisions of Article 51; Article 51-2; Article 52, paragraph (1); Article 52-2, paragraph (1); Article 53; Article 54; or the preceding Article, the Prime Minister must conduct a hearing.

Upon deciding to grant or to refuse an Article 29 or Article 33-2 registration, an Article 30, paragraph (1) or Article 31, paragraph (6) authorization, an Article 31, paragraph (4) registration of a change, or an Article 35, paragraph (4) approval, to attach conditions pursuant to the provisions of Article 30-2, paragraph (1), or to issue a disposition based on the provisions of Article 51; Article 51-2; Article 52, paragraph (1) or (2); Article 52-2, paragraph (1) or (2); Article 53; Article 54; or the preceding Article, the Prime Minister must notify the applicant for registration or the financial instruments business operator, etc. of this in writing.