(Provisional translation)
December 12, 2008
Financial Services Agency

Implementation of administrative monetary penalty system in relation to Reporting of Large shareholding.

From the effective date of the 2008 amendment of the Financial Instruments and Exchange Act (hereinafter "FIEA"), the administrative monetary penalties are set to be imposed on a person who has failed to submit a large shareholding report and/or who has made a fake statement in a report.

- Such cases are;

(Case 1) Failure to submit a large shareholding report and/or a change report pertaining to a large shareholding report. (Article 172-7, the amended FIEA)

(Case 2) Submitting (1) a large shareholding report, (2) a change report pertaining to a large shareholding report, or (3) an amendment report on (1) and (2), which contains any fake statement on important matters and/or lacks a statement on important matters that should be stated. (Article 172-8, the amended FIEA)

The amount of administrative monetary penalty is to be 1/100,000 of the total amount of market capitalization of issuer whose stocks etc. are subject to reporting of large shareholding.

For the abovementioned Case 1, if the person declares to the Securities and Exchange Surveillance Commission (SESC) that his/her case falls under this category, prior to any of (1) the administrative order on submission of reports and (2) the commencement of inspection, the new rule for reduced amount of administrative monetary penalty in half could be applied. (Article185-7, Paragraph 12 of the amended FIEA)

* Click here (available Japanese) for the format and the reporting process for the administrative monetary penalty reduction rule to (SESC Website).

For the person who repeatedly made abovementioned violations, the new rule for increased amount of administrative monetary penalty could be applied. (Article 185-7,Paragraph 13 of the amended FIEA)

If you are required to submit a large shareholding report, please note he following actual examples of failure to submit a large shareholding report.

(Example 1) A person who had acquired more than 5% of the total number of the issued shares of a listed company failed to submit a large shareholding report by the due date and submitted it after the due date.

(Example 2) A person who had submitted a large shareholding report, purchased additional 1% or more of the total number of the issued shares, but failed to submit a change report for large shareholding by the due date and submitted it after the due date.

(Example 3) A person who had submitted a large shareholding report, failed to submit a change report for large shareholding by the due date, when the number of joint holders was increased and thus the holding ratio of share certificates, etc. was increased by 1% or more, and submitted the change report after the due date.