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.

The provisions of Articles 5, 7, 9 and 10 of the Financial Instruments and Exchange Act as amended by the provisions of Article 1 (hereinafter referred to as the "New Financial Instruments and Exchange Act") (including where these provisions are applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act) apply to a public offering of securities or secondary distribution of securities commenced on or after the date of enforcement of this Act (hereinafter referred to as "the effective date") (meaning a public offering of securities or secondary distribution of securities prescribed in Article 5, paragraph (1) of the New Financial Instruments and Exchange Act (including where applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act)), and the provisions then in force continue to govern a public offering of securities or secondary distribution of securities commenced before the effective date (meaning a public offering of securities or secondary distribution of securities prescribed in Article 5, paragraph (1) of the Financial Instruments and Exchange Act prior to amendment by the provisions of Article 1 (hereinafter referred to as the "Former Financial Instruments and Exchange Act") (including where applied mutatis mutandis pursuant to Article 27 of the Former Financial Instruments and Exchange Act)).

The provisions of Article 13, paragraph (1) and Article 15, paragraph (2) of the New Financial Instruments and Exchange Act (including where these provisions are applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act) apply to a public offering of share option certificates commenced on or after the effective date (meaning a public offering of share option certificates prescribed in Article 13, paragraph (1) of the New Financial Instruments and Exchange Act (including where applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act; the same applies in the following Article)), and the provisions then in force continue to govern a public offering of share option certificates commenced before the effective date (meaning a public offering of share option certificates conducted as a public offering prescribed in Article 13, paragraph (1) of the Former Financial Instruments and Exchange Act (including where applied mutatis mutandis pursuant to Article 27 of the Former Financial Instruments and Exchange Act; the same applies in the following Article)).

The provisions of Article 13, paragraph (2) and Article 23-12, paragraph (7) of the New Financial Instruments and Exchange Act (including where these provisions are applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act) apply to a public offering of securities or secondary distribution of securities commenced on or after the effective date (meaning a public offering of securities or secondary distribution of securities prescribed in Article 13, paragraph (1) of the New Financial Instruments and Exchange Act), and the provisions then in force continue to govern a public offering of securities or secondary distribution of securities commenced before the effective date (meaning a public offering of securities or secondary distribution of securities prescribed in Article 13, paragraph (1) of the Former Financial Instruments and Exchange Act).

The provisions of Article 24-5 of the New Financial Instruments and Exchange Act (including where applied mutatis mutandis pursuant to Article 27 of the New Financial Instruments and Exchange Act; hereinafter the same applies in this Article) apply to the submission of the extraordinary report prescribed in Article 24-5, paragraph (4) of the New Financial Instruments and Exchange Act in the case where a company prescribed in that paragraph comes to fall under the case prescribed in that paragraph on or after the effective date, and the provisions then in force continue to govern the submission of the extraordinary report prescribed in Article 24-5, paragraph (4) of the Former Financial Instruments and Exchange Act (including where applied mutatis mutandis pursuant to Article 27 of the Former Financial Instruments and Exchange Act; hereinafter the same applies in this Article) in the case where a company prescribed in that paragraph came to fall under the case prescribed in that paragraph before the effective date.

The provisions of the proviso to Article 27-2, paragraph (1) of the New Financial Instruments and Exchange Act apply to purchase, etc. of share certificates, etc. made by exercising share options allotted pursuant to the provisions of Article 277 of the Companies Act (Act No. 86 of 2005) on or after the effective date, and the provisions then in force continue to govern purchase, etc. of share certificates, etc. made by exercising share options allotted pursuant to the provisions of that Article before the effective date.

The provisions of Article 166 of the New Financial Instruments and Exchange Act apply to the purchase and sale, etc. under that Article by a person who came to know a material fact prescribed in paragraph (1) of that Article that has arisen on or after the effective date (limited, in the case of a decision not to carry out the matter set forth in paragraph (2), item (i) of that Article made by the organ of a listed company, etc. which is responsible for making decisions on the execution of operations prescribed in that item, to cases where the decision of that organ to carry out that matter was made on or after the effective date) or by a person who received communication of such facts, and the provisions then in force continue to govern the purchase and sale, etc. under that Article by a person who came to know a material fact prescribed in Article 166, paragraph (1) of the Former Financial Instruments and Exchange Act that has arisen before the effective date (including, in the case of a decision not to carry out the matter set forth in paragraph (2), item (i) of that Article made by the organ of a listed company, etc. which is responsible for making decisions on the execution of operations prescribed in that item, cases where the decision of that organ to carry out that matter was made before the effective date and the decision not to carry out that matter was made on or after the effective date) or by a person who received communication of such facts.

The provisions of Article 171-2 of the New Financial Instruments and Exchange Act apply to a subject contract prescribed in Article 171-2, paragraph (1) of the New Financial Instruments and Exchange Act that is concluded after the enforcement of the provisions set forth in Article 1, item (ii) of the Supplementary Provisions.

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, those provisions; the same applies hereinafter in this Article) comes into effect and to acts committed after this Act comes into effect in the cases where the provisions then in force continue to govern pursuant to the provisions of these Supplementary Provisions, 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.

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