Unofficial and
Provisional Translation Readers are advised to refer to the original Japanese text before quoting from this document. |
Outline of the Bill on Sales of Financial Products
As part of the efforts to develop an infrastructure for financial services fit
for the 21st century, this bill will introduce measures to protect users of
financial services, such as (a) requiring financial service providers to provide
customers with certain important information, and (b) liability of financial
service providers for any damages caused by their failure to follow such
requirements, as a special case of the civil law.
I. |
Clarification of information provision requirements of financial service providers and liability for damages caused by violation thereof |
1. |
Clarification of information provision requirements of financial service providers |
(1) |
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(2) |
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[1] |
Risk (if any) of loss of principal, and the following potential causes of loss |
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Fluctuations in interest rates, value of currencies, prices on securities markets, and other indices |
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Changes in the conditions of business and assets of the financial service providers, etc. |
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Other factors stipulated by government ordinance |
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[2] |
Limitation on the period for exercising rights and the period for rescission |
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(3) |
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(4) |
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2. |
In the event that a financial service provider fails to provide a customer with information on the important matters, the provider will be liable for damages, which will be presumed to be equal to the amount of loss of principal.
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II. Ensuring appropriate solicitation by financial service providers
1. |
The bill provides that financial service providers must endeavor to solicit for customers in an appropriate manner. |
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2. |
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3. |
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