(Provisional Translation)
July 2, 2003
Financial Services Agency

An administrative action against
Crédit Agricole Indosuez Securities (Japan) Limited, Tokyo Branch

1.    The Securities and Exchange Surveillance Commission (SESC) conducted an inspection of Crédit Agricole Indosuez Securities (Japan) Limited, Tokyo Branch (''the Branch'' hereafter), and found the following violations of the Securities and Exchange Law (''the Law'' hereafter). The SESC recommended the Commissioner of the Financial Services Agency (FSA) to take a disciplinary action against the Branch and notified the findings to the Branch on June 24, 2003.

(1)

Solicitation with promise of special benefit    On March 19, 2002, the Branch solicited securities transactions from a certain corporate customer by promising to waive the claim, which the customer had to pay as the cost arising from its own failure of delivering the stocks, in return for maintaining business relations with the customer.    The acts above are found to be ''solicitation with promise of special benefit'' in the Article 4(ii) of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company, and thus to have violated the Article 42 (1) (ix) of the Law.

(2)

Short-selling in breach of the Law    In October, 2002, the Branch did not confirm whether or not the orders of stocks from the client were short-sales. And the Branch ordered a member firm of a stock exchange short-selling of stocks by the client's orders without legally required disclosure of the fact of short-selling many times.    The acts above are found to have violated the Article 26-3 (3) and (4) of the Cabinet Order based upon the Law and the Article 162 (1) (i) of the Law, both of which regulate short-selling.

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

(1)	Suspend commissioned sales and purchases of stocks in the Branch from July 9, 2003 to July 10, 2003 (2 business days) except for the execution of transactions contracted on or before July 2, 2003.
(2)	Strengthen the internal control system, secure strict compliance by the directors and staff, make preventive measures against recurrence of the above-mentioned violation and clarify locus of responsibility.
(3)	Submit a written report to the FSA on the implementation of the (2) measure above by August 4, 2003.