FAQ on Financial Instruments and Exchange Act

Section 1 Purpose, etc.

Q1.

What is the chapter structure of the Financial Instruments and Exchange Act (FIEA)?

A.

The chapter structure of the FIEA is as follows.

Chapter number	Chapter title
Chapter I	General Provisions
Chapter II	Disclosure of Corporate Affairs and Other Related Matters
Chapter II-2	Disclosure Required for Tender Offer
Chapter II-3	Disclosure of Status of Large Volume Holding of Share Certificates, etc.
Chapter II-4	Special Provisions, etc. for Procedures by Use of Electronic Data Processing System for Disclosure
Chapter II-5	Provision or Publication of Specified Information on Securities, etc.
Chapter III	Financial Instruments Business Operators, etc.
Chapter III-2	Financial Instruments Intermediary Service Providers
Chapter III-3	Credit Rating Agencies
Chapter IV	Financial Instruments Firms Association (Authorized Financial Instruments Firms Association, Public Interest Corporation-Type Financial Instruments Firms Associations, Certified Investor Protection Organization)
Chapter IV-2	Investor Protection Fund
Chapter V	Financial Instruments Exchange
Chapter V-2	Foreign Financial Instruments Exchange
Chapter V-3	Financial Instruments Clearing Organization, etc.
Chapter V-4	Securities Finance Company
Chapter VI	Regulations on Transactions, etc. of Securities
Chapter VI-2	Administrative Monetary Penalty
Chapter VII	Miscellaneous Provisions
Chapter VIII	Penal Provisions
Chapter IX	Investigation into a Criminal Case, etc.
Supplementary Provisions

Q2.

What is the structure of the purpose provisions (Article 1) of the FIEA?

A.

The structure of the purpose provisions of the FIEA is as follows (Article 1 of the FIEA).

• (1)Measures for achieving the purposes

  • –Develop systems for disclosure of corporate affairs and other related matters

  • –Provide for necessary matters relating to persons who engage in Financial Instruments Business

  • –Secure appropriate operation of Financial Instruments Exchanges, etc.

• (2)Direct purposes

  • –Ensure fairness in issuance of the Securities and transactions of Financial Instruments, etc.

  • –Facilitate the smooth distribution of Securities

  • –Aim at fair price formation of Financial Instruments, etc. through the full utilization of functions of the capital market

• (3)Ultimate purposes

  • –Contribute to the sound development of the national economy

  • –Contribute to the protection of investors