Supplementary Provisions

This Act comes into effect on January 6, 2003.

①A person who, at the time this Act comes into force, is conducting securities obligation assumption business (meaning securities obligation assumption business prescribed in Article 2, paragraph (26) of the Securities and Exchange Act as amended by Article 8 (hereinafter referred to as the "New Securities and Exchange Act"); the same applies hereinafter in this Article and paragraph (1) of the following Article) (excluding a securities exchange (meaning a securities exchange prescribed in Article 2, paragraph (14) of the New Securities and Exchange Act; the same applies in the following Article)) may, notwithstanding the provisions of Article 156-2 of the New Securities and Exchange Act, continue to conduct securities obligation assumption business for six months from the effective date (or, if a disposition refusing the license under Article 156-2 of the New Securities and Exchange Act is made within that period, or the person is ordered to abolish securities obligation assumption business pursuant to Article 156-17, paragraph (2) of the New Securities and Exchange Act as applied with the replacement of terms pursuant to the provisions of the following paragraph, until the day on which that disposition was made or on which the person was ordered to abolish it). If that person has filed an application for the license under Article 156-2 of the New Securities and Exchange Act within that period and that period has elapsed, the same applies until a disposition granting or refusing the license is made on that application.

②In the case where a person may continue to conduct securities obligation assumption business pursuant to the provisions of the preceding paragraph, that person is deemed to be a securities clearing organization prescribed in Article 2, paragraph (27) of the New Securities and Exchange Act, and the provisions of Article 156-8, Article 156-14, paragraph (3), Article 156-15, Article 156-16, Article 156-17, paragraph (2), Article 156-22, Article 188, and Article 190 of the New Securities and Exchange Act (including the penal provisions pertaining to these provisions) apply. In this case, the phrase "The Prime Minister, upon discovering that a person has become a director or company auditor of a securities clearing organization by wrongful means, or" in Article 156-14, paragraph (3) of the New Securities and Exchange Act is deemed to be replaced with "The Prime Minister,", and the phrase "revoke the license under Article 156-2 or the approval under the proviso to Article 156-6, paragraph (2) or under Article 156-19" in Article 156-17, paragraph (2) of the New Securities and Exchange Act is deemed to be replaced with "order the abolition of securities obligation assumption business".

③With regard to the application of the provisions of Article 156-4, paragraph (2) of the New Securities and Exchange Act in the case where a person is ordered to abolish securities obligation assumption business pursuant to the provisions of Article 156-17, paragraph (2) of the New Securities and Exchange Act as applied with the replacement of terms pursuant to the provisions of the preceding paragraph, the person ordered to abolish it is deemed to be a person whose license under Article 156-2 of the New Securities and Exchange Act has been revoked pursuant to the provisions of Article 156-17, paragraph (2) of the New Securities and Exchange Act, and the day on which the person was so ordered is deemed to be the day of revocation of the license under Article 156-2 of the New Securities and Exchange Act pursuant to the provisions of Article 156-17, paragraph (2) of the New Securities and Exchange Act.

①A securities exchange that, at the time this Act comes into force, is conducting securities obligation assumption business is deemed to have received the approval under Article 156-19 of the New Securities and Exchange Act on the effective date.

②A securities exchange that is deemed to have received the approval under Article 156-19 of the New Securities and Exchange Act pursuant to the provisions of the preceding paragraph must submit the business rules prescribed in Article 156-7, paragraph (1) of the New Securities and Exchange Act to the Prime Minister within 30 days from the effective date.

The Prime Minister is to delegate the authority under Article 5, paragraph (2) of the Supplementary Provisions and paragraph (2) of the preceding Article to the Commissioner of the Financial Services Agency.

With regard to the application of penal provisions to acts committed before this Act (or, for the provisions set forth in the items of Article 1 of the Supplementary Provisions, those provisions; the same applies hereinafter in this Article) comes into effect and to acts committed after this Act comes into effect in the cases where the provisions then in force continue to govern pursuant to the provisions of these Supplementary Provisions, the provisions then in force continue to govern.

Beyond what is provided for in these Supplementary Provisions, transitional measures necessary in connection with the enforcement of this Act are specified by Cabinet Order.

When five years have elapsed after this Act comes into effect, the government is to take into account the enforcement status of the New Act on Book-Entry Transfer of Company Bonds, etc. and the Financial Instruments and Exchange Act, changes in socioeconomic conditions, etc., review the system concerning account holder protection trusts prescribed in Article 2, paragraph (11) of the New Act on Book-Entry Transfer of Company Bonds, etc. and financial instruments clearing organizations prescribed in Article 2, paragraph (29) of the Financial Instruments and Exchange Act, and take the required measures based on the results if it finds this to be necessary.