(Provisional Translation)
January 10, 2003
Financial Services Agency

An administrative action against ING Securities (Japan) Limited, Tokyo Branch

1. Solicitation with promise of special profit

The Securities and Exchange Surveillance Commission (SESC) conducted an inspection of ING Securities (Japan) Limited, Tokyo Branch (''the Branch'' hereafter), and found the following violation of the Securities and Exchange Law (''the Law'' hereafter). The SESC recommended the Commissioner of the Financial Services Agency (FSA) to take a disciplinary action against the Branch on December 19, 2002.

(1)	In January 1998, the Branch offered a corporate customer the scheme by which the customer could delay the realization of the loss incurred by the note purchased from the Branch. It turned out that, at the time of offering, the note had no value.
(2)	The acts above are found to violate the Article 4-2 of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities company (formerly the Article 2-2 of the Ordinance of the Ministry of Finance concerning Rules and Regulations Governing the Sound Management of Securities Companies).

2. The administrative action against the Branch

On the basis of the above finding, the FSA issued the following orders to the Branch today:

i)	Suspend all the business operations of the Debt Markets Department in the Branch from January 14, 2003 to January 16, 2003 (3 business days) except for the execution of transactions contracted on or before January 10, 2003.
ii)	Strengthen the internal control system, secure strict compliance by the directors and staff, make preventive measures against recurrence of the above-mentioned violation and clarify locus of responsibility.
iii)	Submit a written report to the FSA on the implementation of the measures by February 10, 2003.