Article 156-39Designation of a Person that Conducts Dispute Resolution Services

一it is a corporation (including an organization without legal personality for which a representative or administrator has been designated and excluding a corporation incorporated based on foreign laws and regulations or other foreign organizations; the same applies in item (iv), (d));

二it does not fall under a person that has had a designation under this paragraph rescinded pursuant to Article 156-61, paragraph (1) and for whom five years have not passed since the date of the rescission, or does not fall under a person that has had the designation under the provisions of other laws which is specified by Cabinet Order as involving business equivalent to dispute resolution services, etc. rescinded and for whom five years have not passed since the date of the rescission;

三it does not fall under 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 Attorneys Act (Act No. 205 of 1949) or for violating the provisions of a foreign law or regulation that is equivalent to any 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;

四it has no officer (including the representative or administrator of an organization without legal personality for which a representative or administrator has been designated; hereinafter the same applies in this Chapter) that falls under any of the following categories of persons:

イa person specified by Cabinet Office Order as being unable to properly perform their duties related to Dispute Resolution Services, etc. due to a mental or physical disorder;

ロa person that has become subject to an order to commence bankruptcy proceedings and has not been released from bankruptcy restrictions, or a person that is treated in the same manner under foreign laws and regulations;

ハa person that has been sentenced to imprisonment or a heavier punishment (including an equivalent sentence under foreign laws and regulations), 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;

ニa person that, during the 30 days prior to the date of rescission, was the officer (including a person treated in the same manner under foreign laws and regulations; the same applies in (d)) of a corporation, in a case in which a designation under this paragraph has been rescinded pursuant to the provisions of Article 156-61, paragraph (1) or an administrative disposition which is similar to such a designation and which a corporation has received in a foreign country pursuant to the provisions of a foreign law or regulation that is equivalent to this Act, has been rescinded, and five years have not yet passed since the date of rescission; or a person that, during the 30 days prior to the date of rescission, was the officer of a corporation, in a case in which a designation under the provisions of other Acts, which is specified by Cabinet Order as being for business equivalent to dispute resolution services, etc., has been rescinded or an administrative disposition which is similar to that designation, which is specified by Cabinet Order, and which a corporation has been issued in a foreign country pursuant to the provisions of a foreign law or regulation that is equivalent to any of those other Acts, has been rescinded, and five years have not yet passed since the date of the rescission; or

ホ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 Attorney Act, or for violating the provisions of a foreign law or regulation that is equivalent to any 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;

五it has a sufficient financial and technical basis to perform dispute resolution services, etc. in an appropriate manner;

六the composition of its officers and employees is unlikely to compromise the fair implementation of dispute resolution services, etc.;

七its rules for implementing dispute resolution services, etc. (hereinafter referred to as the "operational rules") conform to laws and regulations and are found to be sufficient for allowing it to implement dispute resolution services, etc. fairly and appropriately pursuant to the provisions of this Act; and

八the result of the hearing of opinions held pursuant to the following paragraph is that the proportion of the number of persons and firms involved in financial instruments transactions that have stated an objection to the particulars of the cancellation of the basic contract for the implementation of dispute resolution procedures, other contents of the basic contract for the implementation of dispute resolution procedures (excluding the matters set forth in the items of Article 156-44, paragraph (2)), and other contents of the operational rules (excluding the matters that are to constitute the content of those rules pursuant to paragraph (3) of that Article and the particulars that are necessary for conforming to the criteria set forth in the items of paragraph (4) of that Article and paragraph (5), item (i)) (limited to objections for which there are reasonable grounds), to the total number of persons and firms involved in financial instruments transactions, is less than the proportion specified by Cabinet Order.