SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION

The Securities and Exchange Surveillance Commission(SESC) conducted the inspection of ABN AMRO Securities (Japan) Limited Tokyo Branch(ABN AMRO) based on the provisions of the Law on Foreign Securities Firms(LFSF) and found legal violation described below.

SESC sent the recommendation to the Financial Reconstruction Commission(FRC) and the Commissioner of Financial Supervisory Agency to take disciplinary action against ABN AMRO pursuant to Article 29(1) of FRC Establishment Law on November 12,1999.

(A securities company's transactions with its parent company on such condition that is remarkably favorable to the securities company as compared with it's usual transactions.)

ABN AMRO had been borrowing approximately 7 billion yen with no interest from its parent bank between September 1997 and June 1998, which was remarkably favorable loan condition as compared with it's usual ones.

(Violation of LFSF 17(1), which is the law before the amendment in 1998)

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