Press Conference by Tatsuya Ito, Minister for Financial Services

(Excerpt)

October 28, 2005

Q.

Regarding non-payment cases of life insurers and those of non-life insurers, it has been one month and three weeks respectively since their investigations were completed. Would you please comment on the status of the findings to the extent that you are free to reveal?

A.

At the moment, we are in the process of carefully examining and analyzing the results of reports submitted by life and non-life insurers. We hoped to complete this examination process as quickly as possible. As soon as the examination is complete, we hope to release the results in one form or another.

Q.

Regarding the certified public accountants audit system, various announcements were made recently by both the FSA and the Auditing Oversight Board about strengthening the system. I would like to formally hear from the minister, what determination underlies the new system, and how you intend to manage the system?

A.

Securing the Japanese people's trust in undistorted disclosure by ensuring strict accounting audits is an extremely important task. Accordingly, we have endeavored to strengthen audits by CPAs in response to the enactment of the revised Certified Public Accountants Law last April and in cooperation with such organizations as the Certified Public Accountants and Auditing Oversight Board. I realize that the latest scandals involving CPAs that erupted in spite of our efforts have fostered questions about the reliability of audits even though these incidents occurred prior to the enactment of the revised Certified Public Accountants Law. For this reason, we worked with such organizations as the Certified Public Accountants and Auditing Oversight Board, and the Japanese Institute of Certified Public Accountants recently to put together additional and urgent measures to ensure proper disclosure and strict accounting audits, and announced these measures. The FSA intends to continue to make efforts to secure the reliability of accounting audits by steadily promoting these measures.

Q.

The press reported today that the FSA is about to announce its administrative action against Meiji Yasuda Life Insurance as early as today. Is there any comment you care to make regarding the current status of the issue?

A.

I am aware that various press reports have been released. However, this is an issue of administrative response that concerns an individual company. I would therefore like to refrain from making any specific comments. We nonetheless intend to study proper administrative response to take against Meiji Yasuda Life Insurance as called for, based on the facts that were discovered through the recent on-site inspection and other facts that came to our attention in the report that Meiji Yasuda was ordered to furnish in response to the findings of the inspection. I also believe that it would be extremely important for Meiji Yasuda Life Insurance to firmly establish a system of internal controls, including a system of controls over insurance payments, under the leadership of its management that executes proper managerial controls.

(End)