Press Conference by the Minister for Financial Services

(Excerpt)

6 August, 2002

Since the announcement of the Program for Structural Reform of Securities Markets in August 2001, we have continued to focus on the structural reform of the securities market, and have been making preparations by listening not only to experts' opinions but also widely to those of the general public. As the results have been complied, we decided to announce today the Program for Promoting Securities Markets Reform, as the second wave of structural reform of the securities market.

Let me describe the relationship between the first Program and the second Program, and the differences between them. Firstly, the Program for Promoting Securities Markets Reform is based on the concept of the Vision for the Future of the Financial System and Policy, which was recently announced by the informal roundtable committee on the vision for the future of the financial system and policy.

Secondly, the first Program was based on the opinion of researchers and market participants, and due to its urgency, it was formulated under constraints in that the amendment of the system had to be performed through the revision of ministerial ordinances. In contrast, the second Program is, as I have just mentioned, reflects the opinions of an extremely wide range of people, especially those who we hope will participate in the market in the future, and it studies issues extending to the revision of legislations.

Thirdly, the second Program focuses on adding measures to verify whether market intermediaries, such as securities companies and investment trusts, are fully performing their obligations to act in good faith with respect to customers, which form the concept of the Vision for the Future of the Financial System and Policy. This time, we focused on adding verification measures to actually boost customers' confidence further by studying those areas and crystallizing them into concrete measures, so that they will really feel those people are doing their best for them.

The Program for Promoting Securities Markets Reform has three major goals: the development of an easy-to-invest market; the development of an extremely fair and transparent market in which investment can be done with peace of mind; and the construction of an efficient and competitive market.