Supplementary Provisions, Article 5Transitional Measures Accompanying the Partial Amendment of the Financial Instruments and Exchange Act by the Provisions of Article 2

①A person who seeks to receive designation under Article 156-67, paragraph (1) of the Financial Instruments and Exchange Act as amended by the provisions of Article 2 (hereinafter referred to in this Article as the "New Financial Instruments and Exchange Act") may submit the application therefor, even before the date of enforcement of the provisions set forth in Article 1, item (iv) of the Supplementary Provisions (hereinafter referred to in this Article as the "item (iv) effective date"), in accordance with the provisions of Article 156-68 of the New Financial Instruments and Exchange Act.

②When an application has been made pursuant to the provisions of the preceding paragraph, the Prime Minister may make the designation even before the item (iv) effective date, in accordance with the provisions of Article 156-67, paragraph (1) of the New Financial Instruments and Exchange Act. In this case, the designation is deemed to have been made on the item (iv) effective date pursuant to the provisions of that paragraph.

④The Prime Minister is to delegate the authority under the provisions of the preceding two paragraphs (excluding the authority specified by Cabinet Order) to the Commissioner of the Financial Services Agency.

⑤A person who submits the written application pertaining to the application under paragraph (1), or the documents or electronic or magnetic records to be attached thereto, containing a false statement or record is punished by imprisonment with work for one year or less or a fine of 3,000,000 yen or less, or both.

⑥If the representative of a corporation (including an organization that is not a corporation but whose representative or administrator has been designated; hereinafter the same applies in this paragraph) or the agent, employee, or other worker of a corporation or individual commits the violation set forth in the preceding paragraph in connection with the business or property of that corporation or individual, in addition to the offender being subject to punishment, the corporation is subject to punishment by a fine of 200,000,000 yen or less, and the individual is subject to punishment by the fine referred to in that paragraph.

⑦If an organization that is not a corporation is to be punished pursuant to the provisions of the preceding paragraph, in addition to its representative or administrator to represent the organization in procedural acts, the provisions of laws concerning criminal proceedings that have a corporation as the defendant or a suspect apply mutatis mutandis.

⑧A person sentenced pursuant to the provisions of paragraph (5) or (6) is deemed to be a person sentenced for violating the provisions of the New Financial Instruments and Exchange Act.