Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, October 29, 2010, from 9:41 a.m. to 9:47 a.m.)

[Questions & Answers]

Q.

On the topic of integrated exchange, a study meeting was held yesterday by Senior Vice Ministers and Parliamentary Secretaries cutting across ministries and agencies. What is your vision of the integrated exchange? Presuming that the government is going to be developing institutions and so forth to enable the creation of an exchange and leave the rest to the management judgment of the exchange, one exchange each may be created in, for example, Tokyo and Osaka. In your opinion, what would be the ideal form of the exchange?

A.

In fact, we announced in the Committee on Financial Affairs in the Diet (Upper House) session yesterday that the first meeting would be held by the respective Senior Vice Ministers and Parliamentary Secretaries of two ministries and one agency. In the first meeting held yesterday, the ''Integrated Exchange Study Team'' was launched, comprised of the respective Senior Vice Ministers and Parliamentary Secretaries of the Financial Services Agency (FSA), the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Economy, Trade and Industry (METI). In the days ahead, a wide range of opinions are expected to be presented in practice, so we will take this opportunity to knuckle down to compile an interim summary by the end of the year, with the view of submitting a bill at the next ordinary Diet session based on the summary if necessary.

Given that the study has just commenced, it would not be appropriate for me to comment on it at this time. The respective Senior Vice Ministers and the Parliamentary Secretaries of the FSA, MAFF and METI will first be required to work hard.  Discussions on the integrated exchange have only just begun, so it would not be appropriate for me to comment on the future direction at this stage.

Q.

Apparently, the Consumer Affairs Agency is going to alert consumers that a company called World Resource Communication Co., Ltd. is engaging in malicious sales. This matter relates to the FSA as well, considering that the company is offering its corporate bonds. What kind of action is the FSA considering to take?

A.

The World Resource Communication Co., Ltd. was in the news broadcast by NHK and commercial TV stations today. In actual fact, the Kanto Local Finance Bureau summoned a representative of World Resource Communication Co., Ltd. at 8:45 a.m. today, and issued a letter of warning to the party concerned effective today, on the grounds that such an act is deemed to correspond to the public offering of securities without giving notification, which is prohibited under the Financial Instruments and Exchange Act. I have been informed that a statement to that effect is to be posted on the website today, to make it widely known among investors and the general public. The details will be announced later by the administrative staff.

Q.

In relation to this case, there are a wide range of issues including the problem of unlisted shares. What are your thoughts on operators like this which are emerging in large numbers?

A.

Appropriate disclosure relating to financial instruments is deemed extremely important in view of protecting investors, which is our top priority, as well as building trustworthy and vibrant markets. As we live in a country ruled by law, the FSA will properly tackle this problem pursuant to laws and regulations.

Thank you for listening.

(End)