It is prohibited for a financial instruments intermediary service provider or its officer or employee to engage in the following acts:

A financial instruments intermediary service provider must not conduct any of the acts specified in Article 2, paragraph (11), item (i) or (ii) in connection with securities for professional investors with a general investor (meaning a person other than a professional investor, etc., the issuer of the securities for professional investors, or any other person specified by Cabinet Office Order; hereinafter the same applies in this Article) as the other party; provided, however, that this does not apply in a case in which disclosure has been made with regard to the securities for professional investors, a case in which the financial instruments intermediary service provider intermediates, a purchase for an entrusting financial instruments business operator, etc. which is not based on a solicitation of general investors, or any other case specified by Cabinet Office Order as having little likelihood of resulting in insufficient investor protection.

The provisions of Article 38-2, Article 39, paragraphs (1), (3), (4), and (7), Article 40, and Article 43-6 apply mutatis mutandis to a financial instruments intermediary service provider, and Article 39, paragraphs (2), (5), and (6) apply mutatis mutandis to the customer of a financial instruments intermediary service provider. In this case, in Article 39, paragraph (3), the phrase "if the financial instruments business operator, etc. receives" is deemed to be replaced with "if the entrusting financial instruments business operator, etc. of the financial instruments intermediary service provider receives", and any other necessary technical replacement of terms is specified by Cabinet Order.

A financial instruments intermediary service provider must prepare and preserve books and documents for its financial instruments intermediary service pursuant to the provisions of Cabinet Office Order.

①Each business year, a financial instruments intermediary service provider must prepare a report on its financial instruments intermediary service and submit it to the Prime Minister within three months after the end of the business year, pursuant to the provisions of Cabinet Office Order.

②Each business year, pursuant to the provisions of Cabinet Office Order, a financial instruments intermediary service provider must prepare documents stating those of the particulars stated in the business report referred to in the preceding paragraph which are specified by Cabinet Office Order as particulars that are found to be necessary in terms of investor protection, and must keep those documents at all of the business offices and offices at which it conducts financial instruments intermediary service and make them available for public inspection, or disclose them using the internet or through other means, pursuant to the provisions of Cabinet Office Order.

For each business year of an entrusting financial instruments business operator, etc. and pursuant to the provisions of Cabinet Office Order, a financial instruments intermediary service provider must keep the explanatory documents that the entrusting financial instruments business operator, etc. prepares pursuant to the provisions of Article 46-4 or Article 47-3 (if the entrusting financial instruments business operator, etc., is a registered financial institution, the documents that it prepares pursuant to the provisions of Article 21, paragraphs (1) and (2) of the Banking Act (Act No. 59 of 1981) or other provisions specified by Cabinet Order) at all of the business offices and offices at which it conducts financial instruments intermediary service, and must make them available for public inspection, or disclose them using the internet or through other means, pursuant to the provisions of Cabinet Office Order.

①If a financial instruments intermediary service provider comes to fall under any of the following items, the person specified in the relevant item must notify the Prime Minister of this within 30 days from the day in question:

②If a financial instruments intermediary service provider comes to fall under any of the items of the preceding paragraph, if it no longer has an entrusting financial instruments business operator, etc., or if it becomes registered as referred to in Article 29 (but only if the registered financial instruments business operator engages in type-I financial instruments business), its Article 66 registration ceases to be effective.

①If a financial instruments intermediary service provider falls under any of the following items, the Prime Minister may rescind its Article 66 registration, order the suspension of all or part of the business during a fixed period of no longer than six months, order a change of business methods, or issue orders with respect to matters that are otherwise necessary from a supervisory perspective:

②If the officer of a financial instruments intermediary service provider comes to fall under any of the categories in Article 29-4, paragraph (1), item (ii), (a) through (i), or engages in an act that falls under item (iii) of the preceding paragraph, the Prime Minister may order the financial instruments intermediary service provider to dismiss that officer.

If an Article 66 registration loses its validity pursuant to the provisions of Article 66-19, paragraph (2) or if the Prime Minister rescinds an Article 66 registration pursuant to the provisions of paragraph (1) of the preceding Article, the Prime Minister must delete that registration.

When the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order a financial instruments intermediary service provider or a person that conducts transactions with a financial instruments intermediary service provider to submit reports or materials that should serve as a reference with regard to financial instruments intermediation operations of the financial instruments intermediary service provider, or may have the relevant officials inspect the state of the financial instruments intermediation operations of the financial instruments intermediary service provider or inspect its documents or other articles.

The provisions of Article 57, paragraphs (1) and (3) apply mutatis mutandis to the registration referred to in Article 66, and the provisions of Article 57, paragraphs (2) and (3) and Article 65-6 apply mutatis mutandis to a financial instruments intermediary service provider. In such a case, the necessary technical replacement of terms is specified by Cabinet Order.

The entrusting financial instruments business operator, etc., of a financial instruments intermediary service provider is liable for damages that the financial instruments intermediary service provider it entrusts causes to a customer in connection with financial instruments intermediary services; provided, however, that this does not apply if the entrusting financial instruments business operator, etc. exercises due care in entrusting the financial instruments intermediary service provider, and endeavors to prevent the damage that the person causes to a customer in connection with the intermediation for financial instruments that the person performs.

The provisions of Articles 64 through 64-9 (excluding Article 64-7, paragraph (2)) apply mutatis mutandis to a financial instruments intermediary service provider. In such a case, the necessary technical replacement of terms is specified by Cabinet Order.

The procedures for implementing the provisions of Article 66 through the preceding Article and other necessary particulars for the implementation are specified by Cabinet Office Order.