Financial Services Agency Government Of Japan: To Those Who Operate Fund Related Businesses In Japan (Guidelines On Registration And Filing Requirements)

To those who operate fund related businesses in Japan (Guidelines on registration and filing requirements)
Notification Form for Special Business Activities for Qualified Institutional Investors

Contact

Kanto Local Finance Bureau
Tel:+81-(0)48-600-1293
2^nd Securities Business Surveillance Section

Financial Services Agency, Government of Japan
Tel +81-(0)3-3506-6000(main)
Securities Business Division, Supervisory Bureau
(ext. 3354)

The above-mentioned file is in PDF format.
If you don't have Adobe Reader on your computer, you can download it from the Adobe site.

To those who operate fund related businesses in Japan
(Guidelines on registration and filing requirements)

Points to keep in mind

Effective September 30, 2007, the Financial Instruments and Exchange Law (''FIEL'') requires registration for any party that engages in self-offering of interests in collective investment schemes (''funds'') or self-management of assets contributed from investors (restricted only to investment in equity securities). In addition, private offerings to one or more qualified institutional investors or less than 50 ordinary investors are required to be filed with the applicable Local Finance Bureau.
On and after March 30, 2008, only persons who have been registered or filed may, in principle, operate such businesses.
Funds established before the enforcement of FIEL may continue to offer interests without registration until March 29, 2008.

I. Definition of collective investment scheme (''funds'')

In accordance with FIEL, interests in collective investment schemes (''funds'') as set out below are considered to be securities and are subject to regulations.

The right to receive dividends of profits or distribution of assets arising from businesses that use cash, securities, bills of exchange, promissory notes and race horses¹ (businesses for investment) contributed from equity owners (equity partners) that does not fall under any one of the following:

(a)	Other securities
(b)	The right of an equity partner when all equity partners are involved in a business for investment²
(c)	The right with a condition that dividends of profits or distribution of assets to an equity partner shall not exceed the amount of his or her capital contribution
(d)	The right based on an insurance contract, mutual aid contract under the Agricultural Cooperative Law, mutual aid contract under the Small and Medium-Sized Enterprise Cooperative Association Act or a contract under the Real Estate Specified Joint Business Law
(e)	The right based on cooperative associations in which participation is restricted to certified public accountants, lawyers, judicial scriveners, land and house surveyors, certified administrative procedures specialists, certified tax accountants, certified real estate appraisers, certified social insurance labor consultants or patent attorneys and those whose exclusive businesses for investment constitute the operation of such businesses
(f)	The right based on a stock ownership plan³
(g)	The right relating to capital contribution for a corporation established in accordance with laws and regulations of Japan (except for a limited liability intermediate corporation)
(h)	The right based on a contract relating to shared forest systems based on the Special Measures Law Concerning Shared Forest Systems

II. Definition of a person engaging in a collective investment scheme (''funds'')

Among persons who manage such interests in a collective investment scheme (''funds''), foreign corporations or individual foreign residents who engage in the following businesses are required to register or file with each Local Finance Bureau that has jurisdiction over the location of their offices when said person have offices in Japan, or with the Kanto Local Finance Bureau when no office is maintained in Japan.

(a)	Public or private offering
(b)	Investment of assets contributed by investors (restricted to investments mainly in the form of rights on securities or derivative contracts based on the analysis of the value of financial instruments, the value of options or the changes in financial indexes)

III. Registration and Filing

When no qualified institutional investor is included among equity partners, or when equity partners consist of one or more qualified institutional investor as well as 50 or more partners who are not qualified institutional investors, the following registrations are required to be filed with the Kanto Local Finance Bureau:
- For persons engaging in the business described in II(a) above, registration of a financial instruments business (the second financial instruments business), and
- For persons engaging in the business described in II(b) above, registration of a financial instruments business (investment management business).
When all equity partners are qualified institutional investors or when equity partners consist of one or more qualified institutional investor and less than 50 partners who are not qualified institutional investors, persons engaging in businesses such as that in II(a) or II(b) above are required to file their special business activities for qualified institutional investors to the Kanto Local Finance Bureau (The filing of statements in English is acceptable).
The signed notification can be submitted by Fax in advance. In that case, please submit the official form by mail or other means afterward.

Among businesses such as those in II(b) above, persons engaging in the following businesses are exempt from the registration or filing requirements.

(a)	When a person enters into a discretionary investment agreement with another financial instruments firm, etc. for the purpose of entrusting all powers and rights for investment management and specific requirements are met⁴ and the financial instruments firm, etc. has reported the required matters concerning the person⁵ before the commencement of the business in question
(b)	When a person invests cash, which has been contributed based on an anonymous association contract concluded with another party, in which beneficiary interests to real estate and specific requirements are met⁶ and the party provides required matters concerning the person⁵5 before the commencement of the business in question
(c)	When a manager of an anonymous association contributes race horses acquired by using all of the cash contributed from partners under another anonymous association agreement
(d)	For investment management by a foreign collective investment scheme, when the number of investors who are resident in Japan is less than ten and they are qualified institutional investors or other investors who have filed the report of special business activities for qualified institutional investors and their direct contribution is less than one-third of the total contribution

IV. Regulations for registered financial instruments firms

FIEL provides the following regulations for financial instruments firms:

(a) Rejection of registration

There are some conditions under which registration as a financial instruments firm is rejected:

1. A person falls under any of the following conditions

(1)	A person who has had his or her registration under Article 29, permission under Paragraph 1 of Article 60 or registration under Article 66 revoked or who has had his or her similar registration or permission revoked (including administrative disposition of other approval similar to such registration or permission) under foreign laws or regulations similar to FIEL and five years has not passed since the date of revocation.
(2)	A person who has been fined due to a violation of FIEL or other laws or regulations concerning the financial business or fined or subject to any similar financial penalty due to a violation of similar laws or regulations of a foreign country and it is not five years beyond the execution of penalty or the date when the penalty became no longer applicable to that person.
(3)	A person who engages in other businesses that are considered against public interest.
(4)	A person who does not have sufficient human resources to implement financial instrument businesses in an appropriate manner.

2. A corporation that has an officer (including a person who is considered to have the power to control the corporation that is equivalent to that of a director, executive officer or other similar authority, regardless of his or her title, such as counselor or advisor) or an employee stipulated by a cabinet order who falls under any of the following conditions:

(1)	A person for which a guardian or curator is appointed or a person treated similarly under foreign laws and regulations
(2)	A person who has received a ruling of the commencement of bankruptcy proceedings and whose legal status has not been restored or a person treated similarly under foreign laws and regulations
(3)	A person who has received a penalty of imprisonment or a penalty more severe (including a similar penalty under foreign laws and regulations) and it has not been five years since the execution of the penalty or the date when the penalty became no longer applicable.
(4)	When a corporation, which was once a financial instruments firm, has had their registration under Article 29 revoked or when a corporation, which was permitted to trade in security exchanges provided in Paragraph 1 of Article 60-4, has had their permission under Paragraph 1 of Article 60 revoked or when a corporation, which was a financial instrument broker, has had their registration under Article 66 revoked or when a corporation has had their registration or permission under foreign laws or regulations similar to FIEL revoked (including administrative disposition of other approval similar to such registration or permission), a person who was an officer of such corporation within 30 days before the revocation and five years has not passed since the date of the revocation.
(5)	When an individual, who was once a financial instrument firm, has had their registration under Article 29 revoked or when an individual, who was once a financial instrument broker, has had their registration under Article 66 revoked or when an individual has had their registration under foreign laws and regulations similar to FIEL revoked (including administrative disposition of other permission similar to such registration or permission) or when an individual has had his or her permission similar to the permission under Paragraph 1 of Article 60 revoked (including administrative disposition) and it has not been five years since the date of the revocation.
(6)	An officer discharged or dismissed under Paragraph 2 of Article 52, Paragraph 2 of Article 60-8 or Paragraph 2 of Article 66-20 or an officer discharged in accordance with the provision of similar foreign laws and regulations and five years have not passed since the date of the discharge.
(7)	A person who has been fined due to a violation of FIEL or other laws or regulations concerning the financial business or the Law for the Prevention of Unjust Acts by Organized Crime Group Members or equivalent foreign laws and regulations or a crime under the Penal Code or the Law for the Punishment of Physical Violence, etc. and five years have not passed since the execution of fine or the date when the penalty became no longer applicable to that person.

3. An individual who falls under any of 2. (1) to (7) above or an individual who was an employee stipulated by cabinet orders who falls under any of 2. (1) to (7) above.
4. A person who has an amount of capital or total amount of contributions less than 10 million yen for a second financial instruments business (except for individuals) and less than 50 million yen for an investment management business

5. For an investment management business, a person falls under any of the following:

(1)	An entity that is not a company limited by shares (only those with a board of directors, corporate auditors or an audit committee stipulated by Item 12 of Article 2, the Company Law) or a company of similar types organized under foreign laws and regulations.
(2)	A person whose networth (calculated by subtracting the amount of total liabilities from total assets) is less than 50 million yen.
(3)	A person whose other business is considered to be detrimental to the protection of investors because it does not fall under any of the businesses stipulated in Paragraph 1 of Article 35 or any of the Items of Paragraph 2 of Article 35 and the risk of loss from such other business is difficult to control.
(4)	A foreign entity with regard to which no competent foreign authority has confirmed that any person equivalent to a major shareholder of a company limited by shares would not be detrimental to the sound and appropriate operation of the financial instruments businesses.

(b) Major restrictions on business conduct

The following are major restrictions on business conduct: ⁷

1. Obligation of good faith and fair practice to clients
2. Prohibition of name lending

3. Restriction on advertisements

A financial instruments firm is required to present the following information when it advertises or carries out similar activities:

(1)	Corporate name or, in the case of an individual, full name
(2)	The fact that it is a financial instruments firm and its registration number
(3)	Matters relating to the fees and similar considerations to be paid by clients
(4)	Matters relating to risks
(5)	The unfavorable facts for clients in respect to significant matters concerning financial instrument transaction contracts
(6)	When the financial instruments business is a member of a financial instruments business association, the fact thereof and the name of the association

4. Delivery of a written document prior to entry into a financial instrument transaction contract

When a financial instruments firm enters into a financial instrument transaction contract with a client, it is required to deliver to the client a written document describing the following matters in advance.

(1)

Corporate name or, in the case of an individual, full name and address

(2)

The fact that it is a financial instruments firm and its registration number

(3)

Contents of the financial instrument transaction contract

(4)

Matters relating to the fees and similar considerations to be paid by clients

(5)

Matters relating to risks

(6)

Notice that a client must read and understand the contents there of

(7)

Outline of taxation relating to financial instrument transaction contracts

(8)

Outline of the financial instruments firm and the financial instrument business to be carried out

(9)

Means for clients to contact the financial instruments firm

(10)

Whether or not the financial instruments firm is a member of a financial instruments business association and if applicable, the name of the association

(11)

When there are any restrictions on the transfer of securities, the fact and details thereof

(12)

Matters relating to accounting of the collective investment scheme (''funds'')

(13)

The following matters when the collective investment scheme (''funds'') is formed under foreign laws and regulations

(i)	Name and content of the law that governs the collective investment scheme (''funds'')
(ii)	Name and major operations of foreign authority that supervises the issuer of the interests of the collective investment scheme (''funds'')
(iii)	Handling of remittance of dividends under the foreign exchange control in question
(iv)	Whether or not the foreign collective investment scheme (''funds'') has an attorney who has the right to represent the issuer in Japan and if applicable, his or her full name and other names
(v)	The court that has jurisdiction over lawsuits regarding the scheme

5. Delivery of a written document at the closing of a transaction

When a financial instrument transaction contract is concluded for a client, the financial instruments firm is required to immediately deliver to the client a written document describing the following matters:

(1)	Corporate name or in the case of an individual, full name
(2)	Name of sales office or other office
(3)	Outline of the financial instrument transaction contract and the date of the closing of the transaction contract
(4)	Matters relating to the fees and other considerations to be paid by the client
(5)	Client's full name or denomination
(6)	Methods for clients to contact the financial instruments business
(7)	Selling or purchasing, name of issue, contracted volume, price, the amount to be paid by the client and types of trading

6. Prohibited acts

(1)	Delivering false information to a client in order to conclude or solicit a financial instrument transaction contract
(2)	Providing a client with a assertive judgment on uncertain matters or providing a client with a misleading statement in order to solicit a financial instrument transaction contract
(3)	Concluding a financial instrument transaction contract without providing client with sufficient explanations necessary for understanding of the contract in the light of the client's knowledge, experience, financial condition as well as the purpose for concluding the financial instrument transaction contract
(4)	Presenting a false statement or misleading information relating to material matters in order to conclude or solicit a financial instrument transaction contract
(5)	Providing or promising to provide special benefits for a client at the conclusion of a financial instrument transaction contract
(6)	Cheating, using force or threatening a client in order to conclude or cancel a financial instrument transaction contract
(7)	Rejecting the execution of all or part of the obligations under a financial instrument transaction contract, including but not limited to financial instrument transactions, or delaying the same unfairly
(8)	Providing property benefits to the client or any third party or making any third party provide the same in order to compensate all or part of the client's loss or increase the gain of the client
(9)	Offering, etc., of interests in a collective investment scheme (''funds'') when the money subscribed or contributed by investors is not properly managed separately from the assets of the manager of the business charged with investing said money
(10)	In the case of an investment management business, investing in transactions through its own accounts or those of its directors or executive officers
(11)	In the case of an investment management business, investing in mutual transactions between portfolio assets
(12)	In the case of an investment management business, engaging in ill-founded transactions in respect to specific financial instruments, financial indexes or options for the purpose of obtaining benefits for a third party other than itself or authorized beneficiaries by utilizing the fluctuations of prices, indexes, figures or an amount of consideration that would result from such transactions
(14)	In the case of an investment management business, investing in transactions for which the terms and conditions are different from usual transactions and would be detrimental to the interests of investors
(15)	In the case of an investment management business, selling or purchasing securities or engaging in other transactions in one's own account by utilizing information obtained in the course of transactions made as an investment management business

7. Duties for investment management businesses in respect to fiduciary, exercise of reasonable care, management in segregated accounts and delivery of management reports

(c) Administrative dispositions

Administrative dispositions are established as follows:

1. Business improvement orders to financial instruments firms

In respect to the operations or financial condition of the firms, the prime minister may order a financial instruments firm to undertake necessary measures for changing the methods of operations or improving management efficiency or financial conditions, to the extent required, if it is considered to be necessary and appropriate for the protection of the public interest or investors.

2. Revocation orders and business suspension orders to financial instruments firms

The prime minister may revoke the registration of a financial instruments firm under Article 29 or order the suspension of all or part of its operations within a certain period not exceeding six months if the financial instruments firm falls under any of the following:

(1)	Violation of laws or regulations or administrative dispositions based on laws or regulations in connection with financial instrument businesses or operations incidental thereto
(2)	High likelihood of insolvency in light of the operations or financial condition of the firm
(3)	Committing of serious fraud or materially unjust conduct in connection with financial instrument businesses

V. Regulations for reporters of special business activities for qualified institutional investors

FIEL stipulates the following regulations for those filing for special business activities for qualified institutional investors.
- (a) Regulations on conduct of businesses
  
  In principle, collective investment schemes (''funds'') for professionals contributed by qualified institutional investors are exempt from the regulations pertaining to business conduct. However, minimum regulations are considered necessary for ensuring the fairness of transactions and, consequently, the prohibition of false reports and the prohibition of compensation for losses apply to the those filing for special business activities for qualified institutional investors.
- (b) Administrative dispositions
  
  There are no provisions of administrative dispositions for businesses filed for special business activities for qualified institutional investors such as those applicable to registered financial instruments firms. However, the authority may inspect businesses that have filed for special business activities for qualified institutional investors (restricted to when the business engages in the investment management of contributed assets) or require special reports for the purpose of understanding the status of special business activities for qualified institutional investors.

VI. Transition period by fund type

Products and operations that have become subject to regulations				Transition period
Fund (Investing in securities and derivatives)	[For ordinary investors] not falling under special business activities for qualified institutional investors	Structured before the enforcement of FIEL and continuing self-offering and self-management subsequent to the enforcement of FIEL (same when the firm structured another fund subsequent to the implementation of FIEL and engages in self-offering and self-management)	Required to register under Article29, FIEL as a financial instruments firm (investment management business, the second financial instrument business)	?six months
		Structured as an joint fund before the enforcement of FIEL and engaging in management only subsequent to the enforcement of FIEL without soliciting contributions	Not required to register as a financial instruments firm (investment management) but required to file within three months as a reporter of special business activities for qualified institutional investors	three months
	[For professionals] falling under special business activities for qualified institutional investors	Structured before the enforcement of FIEL and continuing self-private offering and self-management subsequent to the enforcement of FIEL (same when the firm structured another fund subsequent to the implementation of FIEL and engages in self-private offering and self-management)	Required to file under Paragraph 2 of Article 63, FIEL as a reporter of special business activities for qualified institutional investors (private offering and investment management)	three months
		Structured before the enforcement of FIEL and engaging in management only subsequent to the enforcement of FIEL without soliciting contributions	Required to file under Paragraph 2 of Article 63, FIEL as a reporter of special business activities for qualified institutional investors (investment management)	three months
Funds (not investing in securities and derivatives)	[For ordinary investors] not falling under special business activities for qualified institutional investors	Structured before the enforcement of FIEL and continuing self-offering subsequent to the enforcement of FIEL (same when the firm structured another fund subsequent to the implementation of FIEL and engages in self-offering)	Required to register under Article 29, FIEL as a financial instruments firm (the second financial instrument firm )	six months
		Structured before the enforcement of FIEL and not soliciting contributions subsequent to the enforcement of FIEL	Not subject to FIEL
	[For professionals] falling under special business activities for qualified institutional investors	Structured before the enforcement of FIEL and continuing self-private offering subsequent to the enforcement of FIEL (same when the business structured another fund subsequent to the implementation of FIEL and engages in self-private offering)	Required to file under Paragraph 2, Article 63, FIEL as a reporter of special business activities for qualified institutional investors (private offering)	three months
		Structured before the enforcement of FIEL and not soliciting contributions subsequent to the enforcement of FIEL	Not subject to FIEL

VII. Government offices for registration, filing and contact

Local Finance Bureau	Responsible section	Zip code	Address	Tel	Ext.	FAX No.	Email address
Kanto Local Finance Bureau	2^nd Securities Business Surveillance Section	330-9716	No.1 Saitama Shin-Toshin Godo Chosha, 1-1 Shin-Toshin, Saitama	048-600-1293 (Direct)		048-600-1232	fund.syoukai@kt.lfb-mof.go.jp
Kinki Local Finance Bureau	Securities Services Section	540-8550	No.4 Osaka Godo Chosha, 4-1-76 Ohtemae, Chuo-ku, Osaka	06-6949-6367 (Direct)		06-6949-6120	kinki-kinyushohin@mof-kinki.go.jp
Tokai Local Finance Bureau	3^rd Financial Business Surveillance Section	460-8521	3-3-1 Sannomaru, Naka-ku, Nagoya	052-951-2498 (Direct)		052-951-1780	tkz0945@tk.lfb-mof.go.jp
Hokkaido Local Finance Bureau	1^st Financial Business Surveillance Section	060-8579	Sapporo Dai-ichi Godo Chosha Kita Hachijo Nishi 2-chome, Kita-ku, Sapporo	011-709-2311 (Switchboard)	4355	011-746-0946	HKZKIN1KAOP@hk.lfb-mof.go.jp
Tohoku Local Finance Bureau	3^rd Financial Business Surveillance Section	980-8436	Sendai Godo Chosha 3-3-1 Honcho, Aoba-ku, Sendai	022-263-1111 (Switchboard)	3710	022-261-1796	THZKIN3KAOP@th.lfb-mof.go.jp
Hokuriku Local Finance Bureau	1^st Financial Business Surveillance Section	921-8508	Kanazawa Shinkanda Godo Chosha 4-3-10 Shinkanda, Kanazawa	076-292-7855 (Switchboard)		076-292-7878	kinyuukantoku1@hr.lfb-mof.go.jp
Chugoku Local Finance Bureau	3^rd Financial Business Surveillance Section	730-8520	No.4 Hiroshima Godo Chosha 6-30 Kami-Hatchobori, Naka-ku, Hiroshima	082-221-9221 (Switchboard)	3488	082-223-0479	kin3@mof-chugoku.go.jp
Shikoku Local Finance Bureau	1^st Financial Business Surveillance Section	760-8550	26-1 Nakano-cho, Takamatsu	087-831-2131 (Switchboard)	555	087-862-8798	sz-soumu@mof-sikoku.go.jp
Kyushu Local Finance Bureau	1^st Financial Business Surveillance Section	860-8585	No.1 Kumamoto Godo Chosha 1-2 Ninomaru, Kumamoto	096-353-6351 (Switchboard)	3084	096-359-2821	KINYUUKANNTOKUDAIITIKA@ ks.lfb-mof.go.jp
Fukuoka Local Financial Branch Bureau	1^st Financial Business Surveillance Section	812-0013	No. 4 Fukuoka Godo Chosha 2-11-1 Hakataeki-Higashi, Hakata-ku, Fukuoka	092-411-7281 (Switchboard)	3447	092-411-9290	FOZKIN1KAOP@fo,lfb-mof.go.jp
Okinawa General Bureau	Financial Business Surveillance Section	900-8530	Fuso Building 2-21-7 Maejima, Naha City, Okinawa	098-862-1944 (Direct)		098-866-0251	kinyuu@ogb.cao.go.jp

(For reference) Scope of qualified institutional investors

A qualified institutional investor is an investor who has professional knowledge and experience relating to investment in securities. The following types of institutional investors are designated as qualified institutional investors:

(i)	Financial instruments firms that deal with highly liquid securities such as stocks and bonds or that operate investment management business.
(ii)	Financial institutions that accept deposits (restricted to entities filed with the Commissioner of the Financial Services Agency (FSA) for a credit cooperative and entities designated by the Commissioner of the FSA for agricultural and fishermen's cooperatives)
(iii)	Insurance companies
(iv)	Corporations that have securities balances of 1 billion yen or more and have filed with the Commissioner of the FSA
(v)	Individuals who have securities balances of 1 billion yen or more and one year has passed since the opening of their accounts and who have filed with the Commissioner of the FSA
(vi)	Corporations or individuals that operate an association under the Civil Code (with securities balances of 1 billion yen or more and the consent of other associates) and have filed with the Commissioner of the FSA
(vii)	Limited liability investment partnerships
(viii)	Employees' pension funds that have filed with the Commissioner of the FSA
(ix)	Investment management-type trust companies that have filed with the Commissioner of the FSA

footnote

¹Restricted to race horses acquired by using in entirety cash, securities, bills of exchange or promissory notes participating or contributed by owners of beneficiary interests of trusts or interests in collective investment schemes (''funds'') return
²Restricted in the case where operations relating to the business for investment are conducted with the consent of all equity partners and that all equity partners either engage in said business on a full-time basis or contribute, their professional skills that are indispensable for maintaining business to the business, although not on a full-time basis for investment. return
³Rights based on a contract in which officers and employees of an issuing company or those of an entity under the control of the issuing company (''officers and employees'') are committed to purchase shares of the company jointly with other officers and employees of the company on a regular basis in accordance with a specific purchase plan not based on individual investment decisions, where individual capital contributions per person are less than 1 million yen. return

⁴All following requirements should be met.

1. The following matters are included in the capital contribution contract:

(1)	A provision that all powers and rights of investment management are entrusted to a financial instruments firm, etc. and the corporate name of the firm, etc.
(2)	Outline of the discretionary investment agreement and the amount of management fee when such fees arising from the discretionary investment agreement would be paid from portfolio assets or the calculation method for fees payable when the amount is not specifically established in advance.

2. The following provisions are included in the capital contribution contract and the discretionary investment agreement:

(1)	The financial instruments firm, etc. must operate its investment management for equity partners in good faith.
(2)	The financial instruments firm, etc. must exercise reasonable care in the operation of its investment management for equity partners.

3. The capital contribution contract and the discretionary investment agreement must include a provision that the financial instruments firm, etc. cannot make transactions with its proprietary account, its directors, executive officers or other portfolio assets that are managed in its fund (as used in (1) and (2) below, ''proprietary transaction'') without explaining all such transactions to each equity partner and obtaining the consent of all equity partners or a provision that:

(1)

The financial instruments firm, etc. can trade on its own account with the consent of more than half of all equity partners (Note: a higher proportion may be stipulated) and more than three-fourths of the interests owned by all equity partners (Note: a higher proportion may be stipulated) and

(2)

When an equity partner who does not consent to proprietary trading requests cancellation within 20 days from the date of the explanation of the transaction (Note: a longer period may be stipulated), the person should repurchase the interests owned by such equity partner at fair value from portfolio assets (and terminate the agreement relating to such interests) within 60 days from the date of the proprietary trading (Note: a shorter period may be stipulated).

4. The person is to manage his/her portfolio assets, proprietary account and other assets under his/her management separately under the supervision of the financial instruments firms, etc.
5. When there is any change to the matters registered with respect to the person, the financial instruments firms, etc. must immediately submit the amendments to the Local Finance Bureau. return

⁵(1)Corporate name, denomination or full name (2) For a corporation, capital amount or total amount of contribution and full name or denomination of officers (3) When an employee is responsible for compliance or an employee has the right to represent such authority, names of the employees in quwstion(4) Name and address of major sales offices or offices (5) When it operates other business, the type of businesses in question return
⁶All of the following requirements should be met.
1. A party of the anonymous association agreement is a management person of another anonymous association and it is a financial instruments firms, etc. (only those operating investment management firms, etc.) and those filed for special business activities for qualified institutional investors (only those operating investment management) or those filing investment management with special rules.
2. When any matters to be notified relating to the person are changed, a party of the anonymous association agreement immediately provides amendments to the authority. return
⁷When a client is a specific investor (professional investors such as qualified institutional investors, the government and Bank of Japan), the following regulated actions are not applied: regulations of advertisements, delivery of a written document before entering a contract, delivery of a written document at the contract stage, a part of regulated actions and delivery of a management report. return