Article 106-12Examination Criteria for Authorization

二the applicant for authorization, etc. and the incorporated financial instruments exchange that would become its subsidiary company have good prospects in terms of income and expenditures;

三in light of its personnel structure, the applicant for authorization, etc. has the knowledge and experience to manage the business of the incorporated financial instruments exchange that is to become its subsidiary company, in an appropriate and fair manner; and

四the applicant for authorization has sufficient social credibility.

一the applicant for authorization, etc. is not a stock company (meaning a stock company that has in place the following organs):

イa board of directors; and

ロa company auditor, supervisory committee, or nominating committee, etc.;

二the applicant for authorization is a person that has been sentenced to a fine (including an equivalent sentence under foreign laws and regulations) for violating the provisions of this Act or the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto or for violating the provisions of a foreign law or regulation that is equivalent to one of these Acts, and five years have not passed since the day on which the person finished serving the sentence or ceased to be subject to its enforcement;

三the applicant for authorization is a person that has had their license rescinded pursuant to the provisions of Article 148, Article 152, paragraph (1), Article 156-17, paragraph (1) or (2), Article 148 as applied mutatis mutandis pursuant to Article 156-26, or Article 156-32, paragraph (1); a person that has had their registration rescinded pursuant to the provisions of Article 52, paragraph (1), Article 53, paragraph (3), Article 57-6, paragraph (3), Article 66-20, paragraph (1), Article 66-42, paragraph (1), Article 66-63, paragraph (1) or Article 66-85, paragraph (1); a person that has had their authorization rescinded pursuant to the provisions of Article 106-7, paragraph (1), Article 106-21, paragraph (1), Article 106-28, paragraph (1) or Article 156-5-9, paragraph (1); a person that has had their registration referred to in Article 12 of the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto (limited to the registration related to the type of securities, etc. intermediary business operations) rescinded pursuant to the provisions of Article 38, paragraph (1) of that Act (excluding items (ii), (iii), and (v)); or a person that had a license or registration of the same kind obtained in a foreign country rescinded pursuant to the provisions of a foreign law or regulation that is equivalent to this Act or the Act on the Provision of Financial Services and the Development of the Accessible Environment Thereto (including permission or any other administrative disposition similar to the license or registration); for whom five years have not passed since the date of the rescission;

四the applicant for authorization, etc. has a person falling under any of the provisions of Article 82, paragraph (2), item (iii), (a) through (f) as an officer; or

五the application for authorization, or a document or electronic or magnetic record that is required to be attached to it contains a false statement or false record regarding a material particular.