Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, January 24, 2012, from 9:24 a.m. to 9:33 a.m.)

[Questions & Answers]

Q.

First, I will ask you questions as the representative of the press club.

How do you feel about the decision to allow Olympus to continue to be listed? Also, what do you think of concerns in the market that the decision could undermine morals?

A.

As to the continued listing of Olympus, it is so arranged that the Tokyo Stock Exchange (TSE) should make judgment based on the rules on the listing of securities. As I stated at previous press conferences, it is highly regrettable that Olympus has deferred the posting of past losses and the FSA believes that it is important for Olympus to get to the bottom of the affair and promptly disclose information. I hope that relevant parties, including Olympus, will continue efforts to do so, as Japan has strived hard to conform to global standards so as to ensure the fairness and transparency of the market since the financial Big Bang reform.

Naturally, it is sometimes right but at other times wrong that political power intervenes in a liberal economy. Decisions are made voluntarily by the TSE at its board meetings based on its rules on the listing of securities, which gives particular consideration to fairness. This is a matter concerning the boundary between state power and economic freedom in a liberal society, so I would like to pay special care to that point as a politician.

Q.

Does that mean there has been no political intervention?

A.

As Japan is a constitutional country, I would like to abide by the economic principles of liberal society unless there is a clear violation of law.

Q.

Regarding the Olympus case, do you think that the decision has been made in a just and fair manner based on the rules and do you recognize no particular problem?

A.

I am not in a position to offer my opinion on that. The TSE has made public its rules on the listing of securities, which I am sure are not much out of step with global commonplace standards, and I understand that examination was made based on those rules.

Q.

May I take it that you accept the TSE's decision as the right one?

A.

Exchanges around the world, whether in New York or in Hong Kong, have their own systems and listing rules. In a liberal society, it is not that the state may intervene in all economic matters. That is the principle.

However, as I mentioned earlier, if a violation of law is found, the story is different. In the Olympus case, I hear that the Public Prosecutors Office, the National Police Agency and the Securities and Exchange Surveillance Commission are already conducting investigation. If we treat all matters in the same way without making distinction, a liberal economy would not function well. If we look back at history, a bourgeois society emerged as a counterforce against royal authority in Europe. Mankind has a long history and accumulation of experiences.

Japan is not a planned economy. That is an important point.

(End)