Tokyo Stock Exchange Requests Monex, Inc. Submit Business Improvement Report

TSE requested Monex, Inc. (Monex) submit a business improvement report regarding correction of the misconduct concerned, clarification of locus of responsibility, the extent of compliance awareness of directors and staff, establishment of customer management systems including identity verification, and securing the effectiveness of such systems.

At least from April 1, 2003 to March 31, 2004, Monex accepted and executed securities transaction orders without verifying customers' identities despite suspicions that those customers were disguising as account holders.

The conduct above was found to have violated Article 3(1) of the law concerning customer identity verification by financial institutions.