(Provisional Translation)
January 10, 2003
Financial Services Agency

An administrative action against
Credit Lyonnais Securities Europe-Switzerland AG, Tokyo Branch

1. 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 on Credit Lyonnais Securities Europe-Switzerland AG, Tokyo Branch (''the Branch'' hereafter), conducted by the Inspection Bureau of the FSA (The FSA already notified the Branch of the findings on December 19, 2002). The Branch conducted the following non-securities businesses without legally required prior approval of or notification to the FSA; i) Intermediation of credit derivative transactions. ii) Services provided to or on behalf of affiliated companies iii) Intermediation of sale or purchase of monetary credit, etc. iv) Intermediation of swap transactions, etc. v) Intermediation of cash lending/borrowing.

(2)

The acts above are found to violate the Article 34 (3) and (4) of Securities & Exchange Law applied based on the Article 14 (1) of the Law on Foreign Securities Firms.

2. The violation against the Measures to Prevent Abuses

(1)	Following the above findings, the FSA requested the Branch to produce and submit a report regarding the measures to prevent abuses (The Branch reported about the findings on December 26, 2002).In the report submitted to the FSA, the following violation was found. The Branch owned any electronic information processing system jointly with the affiliated bank.
(2)	The act above are found to violate the Article 12(1)(viii) of Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company and the Article 45 (iii) of the Securities & Exchange Law applied based on the Article 14 (1) of the Law on Foreign Securities Firms.

3. The administrative action against the Branch

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

1. Suspend the businesses listed in 1.(1) i), iii), iv) and v), which had been conducted before gaining approval or notification, for 5 business days between January 14, 2003 and January 20, 2003 (5 business days) except the execution of transactions contracted on or before January 10, 2003.
2. Prohibit submitting applications for approval of the FSA regarding providing services to or on behalf of affiliated companies, for 2 months till March 10, 2003.
3. Enhance the measures to prevent abuses thoroughly, 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.
4. Submit a written report to the FSA on the implementation of the measures above by February 10, 2003.