Supplementary Provisions

This Act comes into effect as of the day specified by Cabinet Order within a period not exceeding one year from the date of promulgation; provided, however, that the provisions set forth in the following items come into effect as of the days specified in those items.

①A person who became a major shareholder of a financial instruments business operator prescribed in Article 32, paragraph (1) of the Financial Instruments and Exchange Act prior to amendment by the provisions of Article 1 (hereinafter referred to in this Article as the "Former Financial Instruments and Exchange Act") before the date of enforcement of this Act (hereinafter referred to as "the effective date") (excluding a person who became that major shareholder by holding subject voting rights (meaning the subject voting rights prescribed in Article 32, paragraph (1) of the Former Financial Instruments and Exchange Act; the same applies in the following paragraph) exceeding 50 percent of the voting rights held by all the shareholders, etc. in that financial instruments business operator (meaning the voting rights held by all the shareholders, etc. prescribed in Article 32, paragraph (1) of the Former Financial Instruments and Exchange Act; the same applies in the following paragraph)), and who, at the time this Act comes into effect, falls under a specified major shareholder prescribed in Article 32, paragraph (4) of the Financial Instruments and Exchange Act as amended by the provisions of Article 1 (hereinafter referred to in this Article through Article 4 of the Supplementary Provisions as the "New Financial Instruments and Exchange Act") (hereinafter simply referred to in this Article as a "specified major shareholder"), is deemed, on the effective date, to have become a specified major shareholder of that financial instruments business operator from a major shareholder other than a specified major shareholder of that financial instruments business operator (meaning a major shareholder prescribed in Article 32, paragraph (1) of the New Financial Instruments and Exchange Act).

②A person who became a major shareholder of a financial instruments business operator prescribed in Article 32, paragraph (1) of the Former Financial Instruments and Exchange Act before the effective date (limited to a person who became that major shareholder by holding subject voting rights exceeding 50 percent of the voting rights held by all the shareholders, etc. in that financial instruments business operator), and who, at the time this Act comes into effect, falls under a major shareholder other than a specified major shareholder (meaning a major shareholder prescribed in Article 32, paragraph (1) of the New Financial Instruments and Exchange Act; hereinafter the same applies in this paragraph), is deemed, on the effective date, to have become a major shareholder other than a specified major shareholder of that financial instruments business operator from a specified major shareholder of that financial instruments business operator.

A financial instruments business operator (meaning a financial instruments business operator prescribed in that paragraph) whose total asset value (meaning the total asset value prescribed in Article 57-2, paragraph (1) of the New Financial Instruments and Exchange Act; the same applies hereinafter in this Article) exceeds the total asset value threshold (meaning the total asset value threshold prescribed in that paragraph; the same applies hereinafter in this Article) at the time this Act comes into effect is deemed to have come to have a total asset value exceeding the total asset value threshold on the effective date.

①A person who, at the time this Act comes into effect, holds subject voting rights (meaning the subject voting rights prescribed in Article 156-5-3, paragraph (1) of the New Financial Instruments and Exchange Act; the same applies hereinafter in this Article) exceeding 5 percent of all shareholders' voting rights in a financial instruments clearing organization (meaning a financial instruments clearing organization prescribed in Article 2, paragraph (29) of the New Financial Instruments and Exchange Act, excluding the case where that financial instruments clearing organization is a financial instruments exchange prescribed in paragraph (16) of that Article; the same applies hereinafter in this Article) is deemed to have come to hold subject voting rights in that financial instruments clearing organization on the effective date.

②A person who, at the time this Act comes into effect, holds subject voting rights in a number equal to or greater than the threshold holding ratio of all shareholders' voting rights in a financial instruments clearing organization (meaning the threshold holding ratio prescribed in Article 156-5-5, paragraph (1) of the New Financial Instruments and Exchange Act) is deemed to have become a person prescribed in that paragraph on the effective date. In this case, the phrase "before doing so" in that paragraph is deemed to be replaced with "within three months from the date of enforcement of the Act Partially Amending the Financial Instruments and Exchange Act, etc. (Act No. 32 of 2010)".

③The provisions of Article 156-5-3, paragraph (2) of the New Financial Instruments and Exchange Act apply mutatis mutandis where the provisions of the preceding two paragraphs are applied.

①A person who seeks to receive designation under Article 156-67, paragraph (1) of the Financial Instruments and Exchange Act as amended by the provisions of Article 2 (hereinafter referred to in this Article as the "New Financial Instruments and Exchange Act") may submit the application therefor, even before the date of enforcement of the provisions set forth in Article 1, item (iv) of the Supplementary Provisions (hereinafter referred to in this Article as the "item (iv) effective date"), in accordance with the provisions of Article 156-68 of the New Financial Instruments and Exchange Act.

②When an application has been made pursuant to the provisions of the preceding paragraph, the Prime Minister may make the designation even before the item (iv) effective date, in accordance with the provisions of Article 156-67, paragraph (1) of the New Financial Instruments and Exchange Act. In this case, the designation is deemed to have been made on the item (iv) effective date pursuant to the provisions of that paragraph.

③A person who has received designation in accordance with the provisions of Article 156-67, paragraph (1) of the New Financial Instruments and Exchange Act pursuant to the provisions of the preceding paragraph may obtain the authorization of the Prime Minister even before the item (iv) effective date, in accordance with the provisions of Article 156-74, paragraph (1) of the New Financial Instruments and Exchange Act. In this case, the authorization is deemed to have been given on the item (iv) effective date pursuant to the provisions of that paragraph.

④The Prime Minister is to delegate the authority under the provisions of the preceding two paragraphs (excluding the authority specified by Cabinet Order) to the Commissioner of the Financial Services Agency.

⑤A person who submits the written application pertaining to the application under paragraph (1), or the documents or electronic or magnetic records to be attached thereto, containing a false statement or record is punished by imprisonment with work for one year or less or a fine of 3,000,000 yen or less, or both.

⑥If the representative of a corporation (including an organization that is not a corporation but whose representative or administrator has been designated; hereinafter the same applies in this paragraph) or the agent, employee, or other worker of a corporation or individual commits the violation set forth in the preceding paragraph in connection with the business or property of that corporation or individual, in addition to the offender being subject to punishment, the corporation is subject to punishment by a fine of 200,000,000 yen or less, and the individual is subject to punishment by the fine referred to in that paragraph.

⑦If an organization that is not a corporation is to be punished pursuant to the provisions of the preceding paragraph, in addition to its representative or administrator to represent the organization in procedural acts, the provisions of laws concerning criminal proceedings that have a corporation as the defendant or a suspect apply mutatis mutandis.

⑧A person sentenced pursuant to the provisions of paragraph (5) or (6) is deemed to be a person sentenced for violating the provisions of the New Financial Instruments and Exchange Act.

With regard to the application of penal provisions to acts committed before this Act (or, for the provisions set forth in the items of Article 1 of the Supplementary Provisions, each of those provisions) comes into effect, the provisions then in force continue to govern.

Beyond what is provided for in Articles 2 through 5 and the preceding Article of the Supplementary Provisions, the transitional measures necessary in connection with the enforcement of this Act (including transitional measures concerning penal provisions) are specified by Cabinet Order.

Within five years after this Act comes into effect, the government is to review the implementation status of the provisions amended by this Act, and take the required measures based on the results of the review if it finds this to be necessary.