Press Release

June 17, 2005 Securities and Exchange Surveillance Commission

Recommendation Based on the Inspection Result of Crédit Agricole Indosuez Securities (Japan) Ltd.

1. Recommendation Issued   Pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act, the Securities and Exchange Surveillance Commission ("SESC") today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency ("FSA") take administrative disciplinary action and any other appropriate measures against Crédit Agricole Indosuez Securities (Japan) Ltd. (Tokyo Branch located in Kanda-Jinbocho, Chiyoda-ku, Tokyo; Pierre Rousseau as a Representative in Japan; staffed with approximately 40 employees/directors; hereinafter referred to as "CAI Securities"). This recommendation is based on the result of the inspection of the same company, through which the following facts constituting the company's and its director's violations of the laws and regulations were detected. 2. Facts Found ･Acts of failing to confirm identity of the customers and keep records of their identification at the time of opening transaction accounts for the customers.   From February 26, 2003 to January 21, 2005, a director of CAI Securities, in conducting CAI Securities' business and together with another employee of it, opened transaction accounts for several corporate clients, without confirming identity of such corporate clients as well as the natural persons responsible for the transactions on such clients' end or keeping records of their identification.   This director violated, through conducting the aforementioned acts, Paragraph 1 and 2 of Article 3, and Paragraph 1 of Article 4 of the Law on Customer Identification and Retention of Records by Financial Institutions, and Prevention of Fraudulent Use of Deposit Accounts.   Based on the aforementioned facts, CAI Securities is acknowledged to have violated the same provisions of the law.

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