①The provisions of Article 46-5 of the New Financial Instruments and Exchange Act apply, with regard to a deemed registered type-I financial instruments business operator, to the accumulation of the financial instruments transaction liability reserve under paragraph (1) of that Article for a business year commencing on or after the effective date, and with regard to the accumulation of the securities transaction liability reserve under Article 51, paragraph (1) of the Former Securities and Exchange Act for a business year that commenced before the effective date, the provisions then in force continue to govern.

②The securities transaction liability reserve under Article 51, paragraph (1) of the Former Securities and Exchange Act that exists, with regard to a deemed registered type-I financial instruments business operator, at the time of enforcement of this Act, and the securities transaction liability reserve under paragraph (1) of that Article in the case where the provisions then in force continue to govern pursuant to the preceding paragraph, are deemed to have been accumulated as the financial instruments transaction liability reserve under Article 46-5, paragraph (1) of the New Financial Instruments and Exchange Act.

The provisions of Article 46-6, paragraph (3) of the New Financial Instruments and Exchange Act apply, with regard to a deemed registered type-I financial instruments business operator, from the month following the month in which the effective date falls.

The provisions of Article 50-2, paragraph (6) of the New Financial Instruments and Exchange Act apply to the discontinuation of financial instruments business, a merger (limited to a merger in which the party is extinguished by the merger), dissolution for reasons other than a merger or an order to commence bankruptcy proceedings, succession to all or part of the business through a company split, or the transfer of all or part of the business, on or after the day on which 30 days have elapsed from the effective date, and with regard to the discontinuation of financial instruments business, a merger (limited to a merger in which the party is extinguished by the merger), dissolution for reasons other than a merger or an order to commence bankruptcy proceedings, succession to all or part of the business through a company split, or the transfer of all or part of the business, before that day, the provisions then in force continue to govern.

①An act of a deemed registered type-I financial instruments business operator or its officer committed before the effective date that falls under Article 56, paragraph (1), item (iii) or (v) of the Former Securities and Exchange Act is deemed to be an act falling under Article 52, paragraph (1), item (vii) or (xi) of the Financial Instruments and Exchange Act, and that paragraph and paragraph (2) of that Article apply.

②The provisions of Article 52, paragraph (2) of the New Financial Instruments and Exchange Act do not apply, until the day on which five years elapse from the effective date, to the case where a person who is an officer of a deemed registered type-I financial instruments business operator and who, at the time of enforcement of this Act, falls under any of Article 29-4, paragraph (1), item (ii), (a) through (g) of the New Financial Instruments and Exchange Act (excluding a person who falls under any of Article 28-4, paragraph (1), item (ix), (a) through (g) of the Former Securities and Exchange Act) continues to fall under any of Article 29-4, paragraph (1), item (ii), (a) through (g) of the New Financial Instruments and Exchange Act.

③A disposition made before the effective date pursuant to the provisions of Article 56, paragraph (1) or (2) of the Former Securities and Exchange Act is deemed to be a disposition made pursuant to the provisions of Article 52, paragraph (1) or (2) of the New Financial Instruments and Exchange Act.

A disposition made before the effective date pursuant to the provisions of Article 56-2, paragraphs (1) through (3) of the Former Securities and Exchange Act is deemed to be a disposition made pursuant to the provisions of Article 53, paragraphs (1) through (3) of the New Financial Instruments and Exchange Act, respectively.

For the purpose of applying the provisions of Article 54 of the New Financial Instruments and Exchange Act, a person who, at the time of enforcement of this Act, has obtained the registration under Article 28 of the Former Securities and Exchange Act is deemed, notwithstanding the provisions of Article 18, paragraph (1) of the Supplementary Provisions, to have obtained the registration under Article 29 of the New Financial Instruments and Exchange Act on the day on which the person obtained that registration.

In the case where a securities company that obtained the registration under Article 28 of the Former Securities and Exchange Act has dissolved or discontinued securities business (meaning securities business prescribed in Article 2, paragraph (8) of the Former Securities and Exchange Act) before the effective date, or in the case where that registration has been rescinded pursuant to Article 56, paragraph (1) or Article 56-2, paragraph (3) of the Former Securities and Exchange Act, if, by the effective date, it has not completed the sale and purchase and other transactions of former securities and the securities index futures transactions, etc. (meaning the securities index futures transactions, etc. prescribed in Article 42, paragraph (1), item (x) of the Former Securities and Exchange Act; the same applies hereinafter), securities option transactions, etc. (meaning the securities option transactions, etc. prescribed in that item; the same applies hereinafter), foreign market securities futures transactions, etc. (meaning the foreign market securities futures transactions, etc. prescribed in Article 42, paragraph (2) of the Former Securities and Exchange Act; the same applies hereinafter) and securities over-the-counter derivatives transactions, etc. (meaning the securities over-the-counter derivatives transactions, etc. prescribed in Article 2, paragraph (8), item (iii)-2 of the Former Securities and Exchange Act; the same applies hereinafter), the provisions of Article 58, paragraph (1) of the Former Securities and Exchange Act remain in force on and after the effective date.

A disposition made pursuant to the provisions of Article 60 of the Former Securities and Exchange Act before the effective date is deemed to be a disposition made pursuant to the provisions of Article 56-3 of the New Financial Instruments and Exchange Act.

①A person who, at the time of enforcement of this Act, is conducting business relating to the act set forth in Article 2, paragraph (8), item (xv) of the New Financial Instruments and Exchange Act with respect to a right set forth in Article 2, paragraph (2), item (v) or (vi) of the New Financial Instruments and Exchange Act (excluding specially permitted services for qualified institutional investors, etc. (meaning the specially permitted services for qualified institutional investors, etc. prescribed in Article 63, paragraph (2) of the New Financial Instruments and Exchange Act; the same applies hereinafter) relating to the act set forth in Article 63, paragraph (1), item (ii) of the New Financial Instruments and Exchange Act) (excluding a person deemed to have obtained the registration under Article 29 of the New Financial Instruments and Exchange Act pursuant to Article 159, paragraph (1) of the Supplementary Provisions and Article 41 of the Arrangement Act) may, until that business (limited to that relating to a right for which solicitation of an offer to acquire was commenced before the effective date; hereinafter referred to as "special investment management services" in this Article) ends, continue to conduct special investment management services, notwithstanding the provisions of Article 29 of the New Financial Instruments and Exchange Act.

②A person who conducts special investment management services under the application of the provisions of the preceding paragraph (excluding a financial instruments business operator, etc. (meaning a financial instruments business operator, etc. prescribed in Article 34 of the Financial Instruments and Exchange Act; the same applies hereinafter) and a notifier of specially permitted services prescribed in Article 63, paragraph (5) of that Act (hereinafter referred to as a "notifier of specially permitted services" in this Article)) must, pursuant to the provisions of Cabinet Office Order, notify the Prime Minister of the following particulars within three months from the effective date:

③In the case where, pursuant to the provisions of paragraph (1), the person referred to in the preceding paragraph continues to engage in special investment management services, the notification under the provisions of the preceding paragraph is deemed to be a notification under the provisions of Article 63, paragraph (2) of the Financial Instruments and Exchange Act, the person who made the notification under the provisions of the preceding paragraph is deemed to be a notifier of specially permitted services, and the provisions of Article 63, paragraphs (5) through (8) and (11), Article 63-2, Articles 63-4 through 63-7, Article 63-9, paragraph (6), Article 65-2, Article 65-4, Article 188, and Article 194-7, paragraphs (2) and (3) of the Financial Instruments and Exchange Act, and the provisions of Chapter VIII and Chapter VIII-2 of that Act pertaining to those provisions, apply; in this case, the phrase "specially permitted services for qualified institutional investors, etc." in these provisions is deemed to be replaced with "special investment management services prescribed in Article 48, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Securities and Exchange Act, etc. (Act No. 65 of 2006)", and any other necessary technical replacement of terms is specified by Cabinet Order.

④A financial instruments business operator, etc. that engages in special investment management services under the application of the provisions of paragraph (1) (excluding a person that has received the registration under Article 29 of the New Financial Instruments and Exchange Act (limited to a registration whose recipient financial instruments business operator engages in investment management business)) must notify the Prime Minister to that effect within three months counting from the effective date, pursuant to Cabinet Office Order.

⑤In the case where a financial instruments business operator, etc. continues to engage in special investment management services pursuant to the provisions of paragraph (1), the notification under the provisions of the preceding paragraph is deemed to be a notification under Article 63-3, paragraph (1) of the Financial Instruments and Exchange Act, and the provisions of Article 63, paragraphs (5), (6) and (8), Article 63-2, paragraph (3), and Articles 63-4 through 63-6 of that Act as applied mutatis mutandis pursuant to Article 63-3, paragraph (2) of the Financial Instruments and Exchange Act, and the provisions of Article 63-3, paragraph (3) of that Act (limited to the part pertaining to item (ii)), Article 63-7, Article 65-2, Article 65-4, Article 188, and Article 194-7, paragraphs (2) and (3) of that Act, and the provisions of Chapter VIII of that Act pertaining to those provisions, apply; in this case, the phrase "specially permitted services for qualified institutional investors, etc." in these provisions is deemed to be replaced with "special investment management services prescribed in Article 48, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Securities and Exchange Act, etc. (Act No. 65 of 2006)", and any other necessary technical replacement of terms is specified by Cabinet Order.

⑥A notifier of specially permitted services that engages in special investment management services under the application of the provisions of paragraph (1) must notify the Prime Minister to that effect within three months counting from the effective date, pursuant to Cabinet Office Order.

⑦In the case where, pursuant to the provisions of paragraph (1), a notifier of specially permitted services continues to engage in special investment management services, the notification under the provisions of the preceding paragraph is deemed to be a notification under Article 63, paragraph (2) of the Financial Instruments and Exchange Act, and the provisions of paragraphs (5) through (8) and (11) of that Article, Article 63-2, Articles 63-4 through 63-7, Article 63-9, paragraph (6), Article 65-2, Article 65-4, Article 188, and Article 194-7, paragraphs (2) and (3) of that Act, and the provisions of Chapter VIII and Chapter VIII-2 of that Act pertaining to those provisions, apply; in this case, the phrase "specially permitted services for qualified institutional investors, etc." in these provisions is deemed to be replaced with "special investment management services prescribed in Article 48, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Securities and Exchange Act, etc. (Act No. 65 of 2006)", and any other necessary technical replacement of terms is specified by Cabinet Order.

With regard to the application of Article 63, paragraph (2) of the New Financial Instruments and Exchange Act to a person who, at the time of the enforcement of this Act, is engaged in specially permitted services for qualified institutional investors, etc., the phrase "in advance" in that paragraph is deemed to be replaced with "within three months counting from the effective date prescribed in Article 1 of the Supplementary Provisions of the Act Partially Amending the Securities and Exchange Act, etc. (Act No. 65 of 2006)".

①A sales representative for whom a deemed registered type-I financial instruments business operator has received registration pursuant to the provisions of Article 64, paragraph (1) of the Former Securities and Exchange Act at the time of the enforcement of this Act is deemed to have been registered on the effective date pursuant to the provisions of Article 64, paragraph (1) of the New Financial Instruments and Exchange Act. In this case, the provisions of Article 64, paragraph (6) of the New Financial Instruments and Exchange Act do not apply.

②Until the day on which one year has passed counting from the effective date, a deemed registered type-I financial instruments business operator may, notwithstanding the provisions of Article 64, paragraph (2) of the New Financial Instruments and Exchange Act, have a person other than a sales representative registered pursuant to the provisions of paragraph (1) of that Article perform the duties of a sales representative (excluding the acts set forth in the items of Article 64, paragraph (1) of the Former Securities and Exchange Act and the items of Article 95, paragraph (1) of the Former Financial Futures Trading Act). The same applies, where an application for registration under Article 64, paragraph (1) of the New Financial Instruments and Exchange Act has been filed in respect of that person within that period, until the day on which the person receives notice that the application will be registered or the day on which the person receives notice, after that period has elapsed, that the application will not be registered.

③The sales representatives register under the provisions of Article 64, paragraph (1) of the Former Securities and Exchange Act that exists at the time of the enforcement of this Act is deemed to be the sales representatives register under the provisions of Article 64, paragraph (1) of the New Financial Instruments and Exchange Act.