Supplementary Provisions

This Act comes into effect on the date specified by Cabinet Order within a period not exceeding one year from the date of its promulgation; provided, however, that the provisions of Article 31 of the Supplementary Provisions come into effect on the date of promulgation.

With regard to a public offering of securities or secondary distribution of securities pertaining to what corresponds to electronically recorded transferable rights (meaning electronically recorded transferable rights prescribed in Article 2, paragraph (3) of the Financial Instruments and Exchange Act as amended by the provisions of Article 2 (hereinafter referred to as the "New Financial Instruments and Exchange Act")) that began before this Act comes into effect (meaning the public offering of securities or secondary distribution of securities prescribed in Article 5, paragraph (1) of the New Financial Instruments and Exchange Act (including as applied mutatis mutandis pursuant to paragraph (5) of that Article, and including where these provisions are applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act)), the provisions then in force continue to govern.

①A person that is actually engaged in the new financial instruments business (meaning the financial instruments business prescribed in Article 2, paragraph (8) of the New Financial Instruments and Exchange Act, excluding that which falls under the financial instruments business prescribed in Article 2, paragraph (8) of the Financial Instruments and Exchange Act before amendment by the provisions of Article 2; hereinafter the same applies in this Article and the following Article) at the time this Act comes into effect (excluding a financial instruments business operator (meaning a financial instruments business operator prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act; the same applies in paragraph (3) and Article 12 of the Supplementary Provisions) and a financial institution prescribed in Article 33, paragraph (1) of that Act) may, for the six months counted from the effective date (or, if within that period a disposition of refusal of registration under Article 29-4, paragraph (1) of the New Financial Instruments and Exchange Act is made, or the person is ordered to discontinue the whole of the new financial instruments business pursuant to Article 52, paragraph (1) of the Financial Instruments and Exchange Act as applied with modified terms pursuant to paragraph (3), until the day of that disposition or the day on which the person is so ordered), notwithstanding Article 29 of the Financial Instruments and Exchange Act, engage in that new financial instruments business with respect to securities and derivatives transactions of the same types as the securities and derivatives transactions that the person actually handles at the time this Act comes into effect, making the customers of that new financial instruments business that the person actually conducts at the time this Act comes into effect the persons to which it is directed, or conducting it for those customers.

②If a person that may engage in the new financial instruments business pursuant to the provisions of the preceding paragraph files an application for registration under Article 29 of the Financial Instruments and Exchange Act by the day on which six months have elapsed from the effective date, and that period has elapsed, the same applies as in the preceding paragraph until a disposition of registration or refusal of registration is made with regard to that application (or, if the person is ordered in the meantime to discontinue all of the new financial instruments business pursuant to the provisions of Article 52, paragraph (1) of that Act as applied with the terms replaced pursuant to the provisions of the following paragraph, until the day on which the person was so ordered); provided, however, that this does not apply if one year and six months have elapsed from the effective date.

③In the case where a person may engage in the new financial instruments business pursuant to the provisions of the preceding two paragraphs, that person is deemed to be a financial instruments business operator, and the provisions of Chapter III, Section 1, Subsection 5, Section 2 (excluding Article 36-2), Section 3 (excluding Articles 46, 46-5, 46-6, 49-4, and 49-5), Section 4 (excluding Article 53), and Section 8 of the New Financial Instruments and Exchange Act, the provisions of Chapter VIII and Chapter VIII-2 of the New Financial Instruments and Exchange Act pertaining to those provisions, and the provisions of the New Act on Prevention of Transfer of Criminal Proceeds (including the provisions of orders based on those provisions) apply; in this case, the phrase "rescind its Article 29 registration" in Article 52, paragraph (1) of the Financial Instruments and Exchange Act is deemed to be replaced with "order the discontinuation of all of the new financial instruments business (meaning the new financial instruments business prescribed in Article 10, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Payment Services Act, etc. to Respond to the Diversification of Financial Transactions Accompanying Advances in Information and Communications Technology (Act No. 28 of 2019))", and any other necessary technical replacement of terms is specified by Cabinet Order.

④With regard to the application of the provisions of the New Financial Instruments and Exchange Act in the case where a person is ordered to discontinue all of the new financial instruments business pursuant to the provisions of Article 52, paragraph (1) of the Financial Instruments and Exchange Act as applied with the terms replaced pursuant to the provisions of the preceding paragraph, the person ordered to discontinue is deemed to be a person whose registration under Article 29 of the Financial Instruments and Exchange Act has been rescinded pursuant to the provisions of Article 52, paragraph (1) of that Act, and the day on which the person was ordered to discontinue is deemed to be the day of rescission of the registration under Article 29 of that Act pursuant to the provisions of Article 52, paragraph (1) of that Act.

①A person that may engage in the new financial instruments business pursuant to the provisions of paragraph (1) of the preceding Article must notify the Prime Minister, within two weeks from the effective date, of its trade name, name, or full name and address, and the particulars set forth in Article 29-2, paragraph (1), items (v), (vi), (viii), and (ix) of the New Financial Instruments and Exchange Act.

②If a person that may engage in the new financial instruments business pursuant to the provisions of paragraph (1) of the preceding Article fails to file the notification under the provisions of the preceding paragraph or files a false notification, the provisions of paragraph (1) of that Article do not apply to that person on or after the day on which the period prescribed in the preceding paragraph has elapsed.

With regard to a financial instruments business operator that, at the time this Act comes into effect, is engaged as a business in an act prescribed in Article 29-2, paragraph (1), item (viii) or (ix) of the New Financial Instruments and Exchange Act, Article 31, paragraph (4) of the New Financial Instruments and Exchange Act applies by deeming that the operator intends to make a change, on the effective date, in the particulars set forth in item (v), (vi), (viii), or (ix) of that paragraph pertaining to that act. In this case, for six months from the effective date (or, if a disposition of refusal of registration of change is made within that period pursuant to the provisions of Article 29-4, paragraph (1) of the New Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 31, paragraph (5) of the New Financial Instruments and Exchange Act, until the day on which that disposition was made, and, if neither a registration of change nor a disposition of refusal of registration of change is made within that period, until such a disposition is made), that financial instruments business operator may, without obtaining the registration of change under Article 31, paragraph (4) of the New Financial Instruments and Exchange Act with regard to those particulars, conduct the business pertaining to that act with the customers of the business pertaining to that act that it is engaged in at the time this Act comes into effect as the persons to which it is directed, or for those customers, with regard to rights and derivatives transactions of the same type as the rights and derivatives transactions prescribed in Article 29-2, paragraph (1), item (viii) or (ix) of the New Financial Instruments and Exchange Act that it is handling at the time this Act comes into effect.

①The Prime Minister delegates the authority under Article 3, paragraph (1) and Article 11, paragraph (1) of the Supplementary Provisions to the Commissioner of the Financial Services Agency.

②The Commissioner of the Financial Services Agency may delegate the authority delegated pursuant to the provisions of the preceding paragraph to the Director-General of a Local Finance Bureau or the Director-General of a Local Finance Branch Bureau, pursuant to the provisions of Cabinet Order.

With regard to the application of penal provisions to acts committed before this Act comes into effect, the provisions then in force continue to govern.

Beyond what is provided for in these Supplementary Provisions, transitional measures necessary for the enforcement of this Act (including transitional measures concerning penal provisions) are specified by Cabinet Order.

The government is to, with a target of five years after this Act comes into effect, taking into account the status, etc. of the enforcement of the respective Acts as amended by this Act (hereinafter referred to in this Article as "the respective Acts as amended"), when it finds it necessary, review the provisions of the respective Acts as amended, and take the required measures based on the results of that review.