(Provisional Translation)
June 27, 2002
Financial Services Agency

An administrative action against Barclays Capital Japan Ltd., Tokyo Branch

1. Securities business without prior authorization and non-securities businesses without prior approval of or notification to the FSA

(1)	The following violations of the Securities & Exchange Law were found as a result of the inspection conducted by the Inspection Bureau of the FSA (The FSA already notified the Branch of the findings on June 21, 2002).
	The Branch conducted the following securities business without legally required prior authorization and non-securities businesses without legally required prior approval of or notification to the FSA; 1) Intermediation of trade in over-the-counter derivatives contract on a security. 2) Intermediation of credit derivative transactions. 3) Intermediation of cash lending/borrowing. 4) Intermediation of making an anonymous association contract among parties. 5) Intermediation of making a deposit. 6) Intermediation of making a contract to guarantee on joint and several liability
(2)	The acts above are found to violate the Article 7 of the Law on Foreign Securities Firms (LFSF), the Article 34 (3) and (4) of Securities & Exchange Law applied based on 14 (1) of the LFSF.

2. The administrative action against the Branch

On the basis of the above finding, the FSA issued the following orders to the Branch:

1)	Suspend the businesses listed in 1.(1) 1)- 4), which were conducted without prior authorization, approval or notification, for 5 business days between July 1, 2002 and July 5, 2002.
2)	Prohibit submitting applications for approval of non-securities business to the FSA, for 2 months till August 26, 2002.
3)	Strengthen the internal control system, secure strict compliance by the directors and staff, make preventive measures against recurrence of the above mentioned violations, and clarify locus of responsibility.