Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, November 11, 2011, from 8:11 a.m. to 8:19 a.m.)

[Opening Remarks by Minister Jimi]

It is highly regrettable from the viewpoint of market fairness and transparency, that the Olympus Corporation has been engaged in deferring the posting of losses from securities and other investments.

It is troubling to see investors, both domestic and abroad, question the fairness and transparency of the Japanese markets, and I would urge all the parties concerned with the markets in Japan to tackle this issue together.

As a first step, I believe it is essential that the Olympus Corporation, on its own initiative, explore what has actually happened as soon as possible and promptly disclose accurate information, including through rigorous investigations by the Third Party Committee, established by the company on November 1, 2011.

The Financial Services Agency of Japan (FSA), as the regulator of the Japanese financial markets, is determined to move quickly, in close cooperation with relevant bodies including the Tokyo Stock Exchange, to urge the company to take steps to accurately grasp the truth and make timely disclosure.

I understand that in cases where there are doubts of violations of the Financial Instruments and Exchange Act (FIEA), the Securities and Exchanges Surveillance Commission, the enforcement arm of the FSA, would undertake necessary actions including rigorous investigations and surveillance. I believe this principle is being applied to the case of the Olympus Corporation as well, and actions taken as necessary.

I would like to note that, in order to ensure market fairness and transparency, Japan has been making ceaseless efforts to upgrade its financial market system through successive amendments to the FIEA and listing rules, among others, and further to improve their actual implementation and enforcement. I am determined to take every measure necessary, if any issues for improvement were to be identified through untangling of this case.

That is all I have to say.

[Questions & Answers]

Q.

Regarding your statement, could you tell me what specific problems the FSA recognizes now and what specific actions it will take in the future?

A.

The FSA's stance is as indicated in my statement. The matter you mentioned now is mostly under the jurisdiction of the FSA. It is highly regrettable that Olympus Corporation has been deferring the posting of losses from securities and other investments. However, it would not be appropriate to conclude in light of an isolated case like this that Japanese companies in general and the Japanese market as a whole lack discipline.

I believe that most Japanese companies have a high degree of discipline and integrity. However, it is very troubling to see market participants, particularly foreign investors, recognize governance problems at Japanese listed companies in general.

In order to ensure market fairness and transparency, I believe that it is very important that Japanese listed companies fully exercise governance in an appropriate manner. The FSA will continue to make efforts to ensure that the governance of Japanese listed companies in general will not be questioned, in close cooperation with relevant bodies, including the Tokyo Stock Exchange.

Q.

Let me ask you just one more question. The Prime Minister has postponed the announcement of participation in negotiations about the TPP (Trans-Pacific Partnership). Could you comment on that?

A.

I have learned of that only through media reports. I had heard that a meeting of relevant ministers on the TPP would be held yesterday, but the meeting was put off as you know.

As I belong to the People's New Party, not the Democratic Party of Japan, I do not have detailed information as to why it was put off. However, it is true that the meeting of relevant ministers on the TPP was put off.

You have repeatedly asked me about my stance on the TPP negotiations. The government has said that it will decide as soon as possible whether or not to participate in the TPP negotiations after conducting a substantive debate and comprehensive study in light of the effects of the TPP on the recovery of agriculture in the disaster areas as well as the progress in international negotiations and concerns over the hollowing-out of industries, among other things.

I am the deputy leader of the People's New Party, in which there are people with various opinions, including those who oppose participation in the TPP negotiations, those who are cautious about it and those who show an understanding. In any case, Mr. Kamei, the leader of our party, is cautious, or I may say against participation in the TPP negotiations. While I am the deputy leader of the People's New Party, I am also a member of the Noda cabinet based on the coalition of the Democratic Party of Japan and the People's New Party, which has continued for the two years since the change of government. A coalition government is based on trust between the coalition partners. As I have served in the Kan cabinet and the Noda cabinet in succession, I think that I should refrain from making comments for the moment with any prejudgment, given that a meeting of relevant ministers on the TPP has not yet been held. On that, I stake my honor as a statesman. I have encountered various serious problems in the past, and it is my belief as a statesman that I should not make comments for the moment.

Thank you very much.

(End)

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