Supplementary Provisions, Article 4Transitional Measures Concerning the Consignor Protection Fund

①A consignor protection fund prescribed in Article 270 of the Former Commodity Derivatives Transaction Act that actually exists at the time of enforcement of this Act (hereinafter in this Article referred to as the "consignor protection fund") may, for the time being, in addition to the business set forth in the items of Article 300 of the Commodity Derivatives Transaction Act as amended by the provisions of Article 4 (hereinafter in this Article referred to as the "New Commodity Derivatives Transaction Act"), with the authorization of the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry, conduct the services set forth in the following items (hereinafter in this Article referred to as "specified services") with respect to the customer assets referred to in Article 79-49, paragraph (4) of the New Financial Instruments and Exchange Act pertaining to a member (hereinafter in this Article referred to as a "specified member") that is, among commodity futures transactions dealers that are actually its members at the time of enforcement of this Act (meaning a commodity futures transactions dealer prescribed in Article 2, paragraph (23) of the Former Commodity Derivatives Transaction Act, limited to a person that conducts business pertaining to the acts set forth in paragraph (22), item (i) or (ii) of that Article; the same applies hereinafter in this Article) and that have, on or after the effective date, received registration under Article 29 of the New Financial Instruments and Exchange Act or registration of change under Article 31, paragraph (4) of the New Financial Instruments and Exchange Act for conducting commodity derivatives transaction-related business (meaning commodity derivatives transaction-related business prescribed in Article 79-20, paragraph (1) of the New Financial Instruments and Exchange Act), one that has applied to that consignor protection fund to be subject to the application of this paragraph. In this case, the provisions of Article 79-49, paragraph (5) of the New Financial Instruments and Exchange Act, Articles 79-52 through 79-61 of the New Financial Instruments and Exchange Act, and Article 2, paragraph (4), Chapter IV, Section 5, Chapter V, Section 3 and Chapter VI, Section 3 of the Act on Special Measures for the Reorganization Proceedings of Financial Institutions (Act No. 95 of 1996; referred to as the "New Act on Special Measures for the Reorganization Proceedings of Financial Institutions" in item (vi)) as amended by the provisions of Article 13 of the Supplementary Provisions apply by deeming a consignor protection fund that conducts specified services (hereinafter in this Article referred to as a "specified consignor protection fund") to be an investor protection fund prescribed in Article 79-21 of the New Financial Instruments and Exchange Act (hereinafter in this paragraph referred to as an "investor protection fund") that has a provision in its articles of incorporation under Article 79-49, paragraph (4) of the New Financial Instruments and Exchange Act, and a specified member of a specified consignor protection fund to be a member of an investor protection fund that has such a provision in its articles of incorporation.

②With regard to the authorization referred to in the preceding paragraph, the provisions of Article 79-30 and Article 79-31 (excluding paragraph (1), item (vi)) of the New Financial Instruments and Exchange Act apply mutatis mutandis; in this case, the phrase "Founders" in Article 79-30, paragraph (1) of the New Financial Instruments and Exchange Act is deemed to be replaced with "A consignor protection fund (meaning a consignor protection fund prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Financial Instruments and Exchange Act, etc. (Act No. 86 of 2012; hereinafter in this Article referred to as the "Amending Act"); the same applies in the following Article) that intends to conduct specified services (meaning specified services prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Amending Act; the same applies hereinafter in this Article and the following Article)", the phrase "after the completion of the organizational meetings" in that paragraph is deemed to be replaced with "after the resolution of the general meeting to amend the operational rules for conducting specified services", the phrase "the Prime Minister and the Minister of Finance" in that paragraph is deemed to be replaced with "the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry", the phrase "members" in item (iii) of that paragraph is deemed to be replaced with "persons who are to become specified members (meaning specified members prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Amending Act)", the phrase "Cabinet Office Order and Ministry of Finance Order" in Article 79-30, paragraph (2) of the New Financial Instruments and Exchange Act is deemed to be replaced with "Order of the Ministry of Agriculture, Forestry and Fisheries and Order of the Ministry of Economy, Trade and Industry", the phrase "the Prime Minister and the Minister of Finance" in Article 79-31, paragraph (1) of the New Financial Instruments and Exchange Act is deemed to be replaced with "the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry", the phrase "procedures for incorporation and the content of the articles of incorporation and operational rules" in item (i) of that paragraph is deemed to be replaced with "the content of the articles of incorporation (limited to the part pertaining to specified services; the same applies in the following item) and operational rules (limited to the part pertaining to specified services; the same applies in the following item)", the phrase "the fund to which the application concerns" in item (iv) of that paragraph is deemed to be replaced with "the consignor protection fund to which the application concerns" and the phrase "to conduct its business" in that item with "to conduct specified services in addition", the phrase "business operations being conducted properly" in item (v) of that paragraph is deemed to be replaced with "specified services being conducted properly", and the phrase "the Prime Minister and the Minister of Finance" in Article 79-31, paragraphs (2) through (4) of the New Financial Instruments and Exchange Act is deemed to be replaced with "the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry".

③The provisions of Article 79-27, paragraph (1) of the New Financial Instruments and Exchange Act do not apply to a specified member, except where that specified member is a financial instruments business operator that conducts securities-related services (meaning securities-related services prescribed in Article 79-20, paragraph (1) of the New Financial Instruments and Exchange Act; the same applies hereinafter in this Article) (excluding a financial instruments business operator specified by Cabinet Order as prescribed in Article 79-27, paragraph (1) of the New Financial Instruments and Exchange Act).

④The provisions of Article 79-27, paragraphs (2) and (3) of the New Financial Instruments and Exchange Act apply mutatis mutandis to a specified member that has received registration of change under Article 31, paragraph (4) of the New Financial Instruments and Exchange Act and intends to conduct securities-related services (excluding a person specified by Cabinet Order as prescribed in Article 79-27, paragraph (2) of the New Financial Instruments and Exchange Act), and the provisions of Article 79-27, paragraph (4) of the New Financial Instruments and Exchange Act apply mutatis mutandis to the case where a member of a specified consignor protection fund has become a specified member, respectively.

⑤The provisions of Article 79-28 of the New Financial Instruments and Exchange Act (limited to paragraphs (1) through (3) and the part of paragraph (5) preceding its items) apply mutatis mutandis to a specified member; in this case, the phrase "is withdrawn from the fund to which it belongs" in paragraph (1) of that Article is deemed to be replaced with "is to cease to be a specified member (meaning a specified member prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Financial Instruments and Exchange Act, etc. (Act No. 86 of 2012); hereinafter in this Article referred to as a "specified member") of a specified consignor protection fund (meaning a specified consignor protection fund prescribed in that paragraph; hereinafter in this Article referred to as a "specified consignor protection fund")", the phrase "an Article 31, paragraph (4) registration of a change indicating that the financial instruments business operator stops conducting securities-related services and commodity derivatives transaction-related business, and also" in item (i) of that paragraph is deemed to be replaced with "an Article 31, paragraph (4) registration of a change indicating that the financial instruments business operator stops conducting commodity derivatives transaction-related business, and", the phrase "is withdrawn from a fund" in paragraph (2) of that Article is deemed to be replaced with "has ceased to be a specified member of a specified consignor protection fund" and the phrase "a member of that fund" in that paragraph with "a specified member of the specified consignor protection fund", the phrase "withdrawal is for a cause set forth in any of the items of paragraph (1)" in paragraph (3) of that Article is deemed to be replaced with "withdrawal is for a cause set forth in any of the items of paragraph (1) or is withdrawal from the specified consignor protection fund to which it belongs", the phrase "it becomes the member of another fund" in that paragraph with "it becomes a member of a fund (limited to one that has no provision in its articles of incorporation under Article 79-49, paragraph (2)), or the services concerning the customer assets referred to in paragraph (4) of that Article pertaining to that financial instruments business operator come to be conducted in the fund to which it belongs (limited to one that has neither of the provisions in its articles of incorporation under paragraphs (2) and (4) of that Article)" and the phrase "withdraw from the fund to which it belongs" in that paragraph with "cease to be a specified member of the specified consignor protection fund", and the phrase "the following requirements are satisfied" in the part of paragraph (5) of that Article preceding its items is deemed to be replaced with "that financial instruments business operator is going through the procedures to join, as a member, a fund (limited to one that has no provision in its articles of incorporation under Article 79-49, paragraph (2)), or is already a member of a fund (limited to one that has neither of the provisions in its articles of incorporation under paragraphs (2) and (4) of that Article)".

⑥With regard to the application of the provisions of the New Commodity Derivatives Transaction Act to a specified consignor protection fund, the phrase "rescission" in Article 277, paragraph (1), item (i) of the New Commodity Derivatives Transaction Act is deemed to be replaced with "rescission (for a specified member (meaning a specified member prescribed in Article 4, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Financial Instruments and Exchange Act, etc. (Act No. 86 of 2012); the same applies hereinafter in this Article), the rescission of that permission and ceasing to be a specified member (meaning ceasing to be a specified member under the provisions of Article 79-28, paragraph (3) of the Financial Instruments and Exchange Act as applied mutatis mutandis with replacement of terms pursuant to Article 4, paragraph (5) of the Supplementary Provisions of that Act; the same applies hereinafter in this Article))", the phrase "lapse" in item (ii) of that paragraph is deemed to be replaced with "lapse (for a specified member, the lapse of that permission and ceasing to be a specified member)", the phrase "case" in Article 277, paragraph (2), item (ii) of the New Commodity Derivatives Transaction Act is deemed to be replaced with "case (for a specified member, a case where it has made that notification and also ceases to be a specified member)", the phrase "that commodity futures transactions dealer" in Article 277, paragraph (4) of the New Commodity Derivatives Transaction Act is deemed to be replaced with "the financial instruments business operator pertaining to a notice under Article 79-53, paragraph (1) or paragraphs (3) through (5) of the Financial Instruments and Exchange Act that the specified consignor protection fund received before that commodity futures transactions dealer withdrew from that specified consignor protection fund, and that commodity futures transactions dealer" and the phrase "Article 308, paragraph (1)" in that paragraph with "Article 308, paragraph (1), and Article 79-56, paragraph (1) and Article 79-59, paragraph (1) of the Financial Instruments and Exchange Act", and the phrase "another consignor protection fund" in Article 327, paragraph (1) of the New Commodity Derivatives Transaction Act is deemed to be replaced with "another consignor protection fund or an investor protection fund prescribed in Article 79-21 of the Financial Instruments and Exchange Act (limited to one that has no provision in its articles of incorporation under Article 79-49, paragraph (2) of that Act)".

⑦The provisions of Article 79-49, paragraph (3) of the New Financial Instruments and Exchange Act do not apply to a specified member.

⑧If a specified consignor protection fund has, in connection with its specified services, violated a law or regulation, a disposition by a government agency which is based on a law or regulation, or the articles of incorporation or operational rules of that specified consignor protection fund, or if the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry find that continuation of its specified services is difficult due to the state of its business or property, and they find it to be necessary and appropriate in the public interest or for the protection of investors, they may rescind the authorization under paragraph (1) for that fund; in this case, irrespective of the category of proceeding for hearing statements of opinion under Article 13, paragraph (1) of the Administrative Procedure Act (Act No. 88 of 1993), they must conduct a hearing.

⑨When the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry intend to take any of the following dispositions, they must in advance consult with the Prime Minister and the Minister of Finance and obtain their consent.

⑩The Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry must, in the following cases, immediately notify the Prime Minister and the Minister of Finance to that effect.

⑪The Prime Minister must, in the following cases, immediately notify the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry to that effect:

⑫The Prime Minister and the Minister of Finance may, if they find it necessary, request the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry to carry out the following matters:

⑬A consignor protection fund that intends to engage in specified services may, even before the effective date, make a change in the articles of incorporation and operational rules for engaging in specified services, file an application for the authorization under paragraph (1), accept the request under that paragraph made by a person that intends to become a specified member, and take any other action necessary for engaging in specified services.