Financial Instruments and Exchange Act

In the cases of violating Article 38-2, item (i) (limited to cases in which the violation has been committed in connection with an investment management business (meaning the investment management business prescribed in Article 28, paragraph (4); hereinafter the same applies in this Chapter)), a representative, an agent, an employee, or any other worker of a financial instruments business operator, etc. that has committed that act is subject to imprisonment for not more than five years or a fine of not more than five million yen, or both.

If any of the following items applies, the person who has committed the violation is subject to punishment by imprisonment for not more than three years, a fine of not more than three million yen, or both:

the person receives, by wrongful means, the registration referred to in Article 26-6, Article 66, Article 66-27, Article 66-50, or Article 66-71, the registration of a change referred to in Article 31, paragraph (4), Article 66-5, paragraph (4), or Article 66-75, paragraph (4), or the permission referred to in Article 59, paragraph (1), Article 60, paragraph (1), or Article 60-14, paragraph (1);

the person violates the provisions of Article 26-14, Article 36-3, Article 66-9, Article 66-34, Article 66-79, or Article 66-98 in having another person perform specified non-financial information audit certification business, registered financial institution business, financial instruments intermediary service, credit rating services, investment management-related services contracting business, or cryptoasset management-related services;

the person violates Article 38, item (i) (limited to cases in which the violation has been committed in connection with investment management business);

the person violates Article 38, item (vii) or Article 66-14, item (i), (c);

the person, in violation of Article 42-7, paragraph (1), fails to carry out the provision of information under the provisions of that paragraph or carries out the provision of false information;

the person violates the provisions of Article 59, paragraph (1), Article 60, paragraph (1), or Article 60-14, paragraph (1), in conducting business prescribed in Article 59, paragraph (1), Article 60, paragraph (1), or Article 60-14, paragraph (1), without obtaining permission of the Prime Minister;

the person violates the provisions of Article 36-3 as applied mutatis mutandis pursuant to Article 59-6 or Article 60-13 (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2)), in having another person conduct the business prescribed in Article 59, paragraph (1), Article 60, paragraph (1), or Article 60-14, paragraph (1);

the person, in violation of Article 66-50, conducts high-speed trading without obtaining registration from the Prime Minister;

the person, in violation of Article 66-56, has another person conduct high-speed trading;

the person conducts cryptoasset management-related services without filing a notification under the provisions of Article 66-94, paragraph (1), or files a false notification, or makes a false statement or record in a document or electronic or magnetic record that is required to be attached to the notification under paragraph (1) of that Article pursuant to paragraph (2) or (3) of that Article and submits the document or record;

the person violates a disposition to discontinue services under the provisions of Article 66-103, paragraph (1);

the person, in violation of Article 80, paragraph (1) or Article 155, paragraph (1), establishes a financial instruments market, or has another person conduct transactions on a foreign financial instruments market;

the person, in violation of Article 102-14, performs self-regulatory services prescribed in Article 84, paragraph (2) without obtaining authorization of the Prime Minister;

the person, in violation of Article 156-2, performs financial instruments obligation assumption services;

the person, in violation of Article 156-20-16, paragraph (1), performs collaborating financial instruments obligation assumption services without obtaining authorization of the Prime Minister;

the person, in violation of Article 156-24, paragraph (1), conducts business prescribed in that paragraph without obtaining a license from the Prime Minister; or

the person violates an order of the court under the provisions of Article 192, paragraph (1) or (2).

An officer (including a provisional board member or provisional auditor) or inspector of an incorporated association-operated financial instruments exchange, or a person that is to be the director or company auditor of an incorporated financial instruments exchange, who has made a false statement to or concealed a fact from the Prime Minister, the court, or the members of a general meeting with regard to subscription or payment for the total number of shares to be issued pursuant to the provisions of Article 101-9, the delivery of property other than money, or the particulars set forth in Article 101-9, item (iii), is subject to punishment by imprisonment for not more than three years, a fine of not more than three million yen, or both.

The following property is to be confiscated; provided, however, that if it is not appropriate to confiscate all or part of the property in light of the circumstances of its acquisition, the progress of a person's performance of the obligation to pay damages, and other circumstances, the property may be exempted from confiscation:

property obtained through criminal act in a crime referred to in Article 197, paragraph (1), item (v) or (vi), or paragraph (2), or Article 197-2, paragraph (1), item (xiii) or (xvi); and

property obtained in exchange for property set forth in the preceding item, or if property set forth in the preceding item is an option or other rights, the property obtained through exercising those rights.

If property is required to be confiscated pursuant to the provisions of the preceding paragraph but it is not possible to confiscate the property, its value is collected from the perpetrator.

In the case of a violation of the provisions of Article 38-2 or Article 39, paragraph (1) (including as applied mutatis mutandis pursuant to Article 66-15); Article 41-2, item (ii) or (v); or Article 42-2, item (i), (iii), or (vi) (in the case of violation of Article 38-2, item (i), excluding the case in which the violation has been committed in connection with an investment management business), the representative, agent, employee, or any other worker of a financial instruments business operator or financial instruments intermediary service provider that has committed the violation, or the financial instruments business operator or financial instruments intermediary service provider that has committed the violation, is subject to imprisonment for not more than three years, a fine of not more than three million yen, or both.

If a person violates the provisions of Article 106-10, paragraph (1) or (3), the person who has committed the violation is subject to punishment by imprisonment for not more than two years, a fine of not more than three million yen, or both.

If any of the following items applies, the person who has committed the violation is subject to punishment by imprisonment for not more than two years, a fine of not more than three million yen, or both:

the person violates the provisions of Article 42-4, Article 43-2, paragraph (1) or (2), Article 43-2-2, Article 43-3, Article 43-14, paragraph (1) or (2), first sentence, or Article 43-15, paragraph (1), first sentence;

the person violates a disposition for suspending business under the provisions of Article 26-24, paragraph (1); Article 52, paragraph (1); Article 53, paragraph (2); Article 57-6, paragraph (1); Article 57-20, paragraph (2); Article 60-8, paragraph (1) (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2)); Article 63-5, paragraph (2) (including as applied mutatis mutandis pursuant to Article 63-3, paragraph (2)); Article 63-13, paragraph (2) (including as applied mutatis mutandis pursuant to Article 63-11, paragraph (2)); Article 66-20, paragraph (1); Article 66-42, paragraph (1); Article 66-63, paragraph (1); Article 66-85, paragraph (1); or Article 66-103, paragraph (1) (excluding a disposition for suspending business that is related to the authorization referred to in Article 30, paragraph (1));

the person violates an order under the provisions of Article 57-20, paragraph (1) or (2), Article 57-21, paragraph (2), or Article 153-5 (if it is an order under the provisions of Article 57-20, paragraph (2), excluding the disposition for suspending business);

the person violates a disposition for measure under the provisions of Article 26-36, paragraph (1) or suspension under the provisions of paragraph (2) of that Article, suspension, change, prohibition, or measure (excluding an order to dismiss officers) under the provisions of Article 74, paragraph (1), measure under the provisions of Article 79-6, paragraph (1) or suspension under the provisions of paragraph (2) of that Article, suspension, change, prohibition, or measure under the provisions of Article 152, paragraph (1) (including as applied mutatis mutandis pursuant to Article 153-4), change, prohibition, or measure under the provisions of Article 153-2, suspension, change, or prohibition under the provisions of Article 155-10, paragraph (1), suspension under the provisions of Article 156-17, paragraph (2) or Article 156-20-14, paragraph (2), suspension, change, or prohibition under the provisions of Article 156-20-22, or suspension under the provisions of Article 156-32, paragraph (1), Article 156-83, paragraph (1), or Article 156-90, paragraph (2); or

the person violates the provisions of Article 106-28, paragraph (3).

A person that violates the provisions of Article 26-12 is subject to punishment by imprisonment for not more than two years or a fine of not more than one million yen.

A public prosecution for the crime set forth in the preceding paragraph may not be instituted without a complaint.