Financial Instruments and Exchange Act

When the Prime Minister has received, from a person set forth in the first column of the table in Article 185-7, paragraph (22), a report of facts falling under the provisions set forth in the second column of that table and the submission of materials, as provided by Cabinet Office Order, the Prime Minister is to promptly notify, as provided by Cabinet Office Order, the person who made the report of facts and submitted the materials (referred to as the "reporting person" in the following paragraph and the following Article) of that fact and of whether that report of facts and submission of materials was made before the disposition set forth in the third column of that table was carried out.

Except where the Prime Minister has reached the agreement set forth in paragraph (1) of the following Article (including an agreement the content of which is to perform the acts set forth in the items of paragraph (2) of that Article), the Prime Minister may, until making a decision to commence trial procedures for a case concerning the facts for which the report and submission of materials under the provisions of the preceding paragraph have been received, additionally request the reporting person to report facts or submit materials concerning the case.

When a reporting person has made an application to the Prime Minister for consultation on any of the following acts, the Prime Minister is to hold consultations with the reporting person, and, taking into account the content of the facts relating to the particulars specified by Cabinet Office Order as contributing to the clarification of the truth of the case, which are obtained from the facts and materials reported or submitted by the reporting person pursuant to the provisions of paragraph (1) of the preceding Article and are expected to be obtained from the facts or materials that the reporting person will report or submit through the act set forth in item (i), and other circumstances, may, as provided by Cabinet Office Order, reach an agreement with the reporting person the content of which is that the reporting person is to perform the act set forth in item (i) and the Prime Minister is to perform the act set forth in item (ii):

the following acts:

in the consultation, to report or submit, immediately after the agreement, the facts or materials that the reporting person offered to report or submit to the Prime Minister;

in relation to the facts or materials obtained through the report of facts and submission of materials under the provisions of paragraph (1) of the preceding Article or through the act set forth in (a), at the request of the Prime Minister, to report facts, submit materials, consent to an inspection by the Prime Minister of the reporting person's articles (referred to as an "inspection" in (c) and in item (i), (b) of the following paragraph) or perform other acts; and

in relation to the facts ascertained through an investigation by the Prime Minister, at the request of the Prime Minister, to report facts, submit materials, consent to an inspection or perform other acts;

to reduce, from the administrative monetary penalty amount before reduction, the amount obtained by multiplying the amount set forth in the fourth column of the table in Article 185-7, paragraph (22), in accordance with the category of persons set forth in the first column of that table (hereinafter referred to as the "administrative monetary penalty amount before reduction" in this item and in item (ii) of the following paragraph), by a specific ratio, not exceeding 30/100, determined in the agreement (referred to as the "specified ratio" in item (ii) of the following paragraph and in Article 185-7, paragraph (23), items (ii) and (iii)).

In the case where the facts or materials obtained through the act set forth in item (i) of the preceding paragraph, as explained by the reporting person in the consultation under the preceding paragraph, are necessary for the prompt clarification of the truth of the case, and, in addition, it is found that there is a high probability that the reporting person will, after the agreement under the preceding paragraph, come to know of new facts or materials concerning the case that relate to facts relating to the particulars specified by Cabinet Office Order in the preceding paragraph, if the Prime Minister finds that there are circumstances under which a certain period after that agreement is required for the report or submission of those new facts or materials, the Prime Minister may request the reporting person, in the consultation, to include in the content of that agreement that the reporting person is to perform the act set forth in item (i) in addition to the act set forth in item (i) of the preceding paragraph, and to make it the content of that agreement that the Prime Minister is to perform the act set forth in item (ii) in place of the Prime Minister performing the act set forth in item (ii) of the preceding paragraph.

the following acts:

after that agreement, upon coming to know of those new facts or materials, to immediately report or submit those new facts or materials to the Prime Minister;

in relation to the facts or materials obtained through the act set forth in (a), at the request of the Prime Minister, to report facts, submit materials, consent to an inspection or perform other acts; and

to reduce, from the administrative monetary penalty amount before reduction, the amount obtained by multiplying the administrative monetary penalty amount before reduction by a rate determined by the Prime Minister by evaluating the content of the facts relating to the particulars specified by Cabinet Office Order in the preceding paragraph that were obtained through that act, within a range with the specified ratio as the lower limit and, as the upper limit, the rate obtained by adding to the specified ratio the rate determined in the agreement, as provided by Cabinet Office Order, as the rate by which the administrative monetary penalty amount before reduction may be further reduced in return for the reporting person performing the act set forth in the preceding item (limited to a rate not exceeding 30/100) (referred to as the "post-evaluation rate" in paragraph (4) and in Article 185-7, paragraph (23), items (ii) and (iii)).

The agreement under paragraph (1) (including an agreement the content of which is to perform the acts set forth in the items of the preceding paragraph; the same applies in the following paragraph, paragraph (6), and Article 185-7, paragraph (22), paragraph (23), items (ii) and (iii), and paragraph (24), item (iii)) is to be made by clarifying its content in a document signed, or bearing the names and seals, of the Prime Minister and the reporting person.

When the Prime Minister makes the agreement under paragraph (1) the content of which is to perform the act set forth in paragraph (2), item (ii), the Prime Minister is to state, in the document under the preceding paragraph, the method of the evaluation by the Prime Minister and of the determination of the post-evaluation rate prescribed in that item.

In the consultation under paragraph (1), the Prime Minister may request the reporting person to explain the outline of the facts or materials that the reporting person can report or submit through the act set forth in item (i), (a) of that paragraph.

In the case where the agreement under paragraph (1) has not been reached (excluding the case where, the reporting person not having complied with the request under paragraph (2), an agreement the content of which is only to perform the acts set forth in the items of paragraph (1) has been reached), the Prime Minister may not use as evidence a document or other article in which the Prime Minister has recorded the content of the explanation given by the reporting person in the consultation under that paragraph.

The time limit for applications for consultation and other procedures necessary for the consultation under paragraph (1) are specified by Cabinet Office Order.

In holding the consultation under paragraph (1), a reporting person may appoint a representative (limited to an attorney-at-law or legal professional corporation; referred to as a "specified agent" in the following paragraph and paragraph (10)).

In holding the consultation under paragraph (1), the Prime Minister is to inform the reporting person that is the other party to the consultation, in writing, that the reporting person may appoint a specified agent.

With regard to the application of the provisions of paragraphs (1) and (3) in the case where a reporting person has appointed a specified agent pursuant to the provisions of paragraph (8), the phrase "consultations with the reporting person" in paragraph (1) is deemed to be replaced with "consultations with the reporting person or the specified agent (meaning the specified agent prescribed in paragraph (8); the same applies in paragraph (3))", and the phrase "and the reporting person" in paragraph (3) is deemed to be replaced with "and the reporting person and the specified agent".