Financial Instruments and Exchange Act

If the person provided for in Article 197-2, paragraph (2), item (ii), Article 198, paragraph (2), or Article 203, paragraph (1) is a corporation, those provisions apply to the director, executive officer, or other officer or manager that executes the business of the corporation who has committed that act.

In the following cases, the officer (including a provisional board member, provisional auditor, provisional director, provisional accounting advisor, provisional company auditor, and provisional executive officer) of an authorized financial instruments firms association, financial instruments exchange, self-regulatory organization prescribed in Article 85, paragraph (1), or financial instruments exchange holding company is sentenced to a civil fine of not more than one million yen:

the officer violates an order under the provisions of Article 73 or Article 153 (including as applied mutatis mutandis pursuant to Article 153-4);

the officer fails to record the amount of capital reserves prescribed in Article 101-8;

the officer fails to give a notice under the provisions of Article 101-10, paragraph (1) or (4);

the officer fails to complete the registration under the provisions of Article 101-20, paragraph (1);

the officer violates the provisions of Article 102-31, paragraph (1) or Article 105-16, paragraph (1) in failing to keep minutes;

the officer violates the provisions of Article 105-5, paragraph (1) in failing to select a majority of the members of the self-regulatory committee from among outside directors; or

the officer fails to make the list under the provisions of Article 105-18 available for public inspection.

A person that falls under any of the following items is sentenced to a civil fine of not more than one million yen:

a person that, in violation of the provisions of Article 26-18, assumes the position of an officer of a specified submitter prescribed in that Article or of its subsidiary company, etc.;

a person that, in violation of the provisions of Article 941 of the Companies Act as applied mutatis mutandis pursuant to Article 50-2, paragraph (10) and Article 66-40, paragraph (6), fails to request the investigation referred to in Article 941 of the Companies Act;

a person that, in violation of the provisions of Article 946, paragraph (3) of the Companies Act as applied mutatis mutandis pursuant to Article 50-2, paragraph (10) and Article 66-40, paragraph (6), fails to make a report or gives a false report;

a person that refuses the request set forth in any of the items of Article 951, paragraph (2) or Article 955, paragraph (2) of the Companies Act as applied mutatis mutandis pursuant to Article 50-2, paragraph (10) and Article 66-40, paragraph (6), without just cause; or

a person that refuses to allow the inspection or copying prescribed in Article 102-31, paragraph (2) or Article 105-16, paragraph (2) or (3) (including as applied mutatis mutandis pursuant to paragraph (4) of that Article), without just cause.

A director or executive officer of a financial instruments business operator, a domestic representative of a financial instruments business operator that is a foreign corporation, or a person equivalent to any of them, or an officer of an association (including a provisional board member), is subject to a civil fine of not more than one million yen in any of the following cases:

the person fails to hand over affairs to a customer property administrator appointed under the provisions of Article 57-30, paragraph (2); or

the person, in violation of Article 57-31, paragraph (3), refuses without a justifiable ground to become a customer property administrator.

A customer property administrator is subject to a civil fine of not more than one million yen in any of the following cases:

the person fails to hand over affairs to a director, executive officer, or liquidator of a financial instruments business operator under management, a domestic representative of a financial instruments business operator under management that is a foreign corporation, or a person equivalent to any of them, even though the disposition ordering administration has been rescinded under the provisions of Article 57-29, paragraph (1); or

the person violates an order under the provisions of Article 57-30, paragraph (3).

A person that, in violation of a disposition under Article 189, paragraph (1), fails to appear, fails to give a statement, or gives a false statement, or fails to make a report or submit materials, or makes a false report or submits false materials, is subject to a civil fine of not more than 500,000 yen.