Press Conference by Kaoru Yosano, Minister of State for Economic and Fiscal Policy and Financial Services

(Excerpt)

March 10, 2006

Minister's Statement

Today's Cabinet meeting proceeded according to agenda. The proposed Financial Instruments and Exchange Law (what is called the Investment Services Law) was approved by the Cabinet and will be submitted to the Diet.

Q&A

Q.

What are your thoughts on the meaning or purpose of the Financial Instruments and Exchange Law that received Cabinet approval today?

A.

The Financial Instruments and Exchange Law was approved as an amendment to the Securities and Exchange Law because we have reached the stage where the fast-growing variety of financial products available, aside from securities, necessitates the establishment of regulations for a range of financial products, as well as regulations across the financial industry overall.

There are two important points to the Financial Instruments and Exchange Law. The first is that it is structured to ensure fair trading. The second is that it contains comprehensive regulations on information disclosure so that investors can make decisions based on accurate facts. I think that these two points probably capture the essence of the law, but its ultimate aim is to promote the growth of the market and protect investors by extending the scope of general regulations to so-called financial products in order to combat the expected rise in foreign exchange margin transactions and other types of transactions which were unheard of a decade ago.

Q.

What do you have to say about news reports that Aeon has applied for a banking permit?

A.

I take those news reports to be news reports, but at this stage I am not in a position to add anything further on behalf of the Financial Services Agency.

(End)