Publication and update date:

Correspondence table with the "Principles for Customer-Oriented Business Conduct" published by the Financial Services Agency
Name of financial business operator■URL of the website regarding the policies:■URL of the website regarding the status of
Principles**November 7, 2023

Morgan Stanley MUFG Securities Co., Ltd.
https://www.morganstanley.co.jp/en/legal-notices/client-oriented-business-conduct-msms
https://www.morganstanley.co.jp/en/legal-notices/client-oriented-business-conduct-msms/progress-update202311_en.pdf
Implemented or not *6

Corresponding section of the policies *6

Implemented

1. Our Core Value to Put Clients First (Corresponding toPrinciple 2)

1. Status of Compliance with Putting Clients First(Corresponding to Principle 2)

Implemented

1. Our Core Value to Put Clients First (Corresponding toPrinciple 2)

1. Status of Compliance with Putting Clients First(Corresponding to Principle 2)

Implemented

2. Our Policy on Proper Management of Conflict of Interest(Corresponding to Principle 3)

2. Proper Management of Conflict of Interest(Corresponding to Principle 3)

Implemented

2. Our Policy on Proper Management of Conflict of Interest(Corresponding to Principle 3)

2. Proper Management of Conflict of Interest(Corresponding to Principle 3)

Implemented

3. Our Policy on Clarification of Pricing and Applicable Feesfor the Financial Products and Services (Corresponding toPrinciple 4)

3. Clarification of Pricing and Applicable Fees for theFinancial Products and Services (Corresponding to Principle4)

Implemented

4. Our Policy on Providing Important Information in an
Understandable Manner (Corresponding to Principle 5)

4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

Implemented

4. Our Policy on Providing Important Information in an
Understandable Manner (Corresponding to Principle 5)

4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

When a financial business operator sells or recommends
multiple financial products or services as a package, thefinancial business operator should indicate to customers
whether it is possible to purchase them separately and should(Note 2) provide important information about each financial product orservice so that the customers can compare the packaged andnon-packaged products and services. (Note 2 through Note 5
also applies to the cases when providing information on fees,etc.)

Implemented

4. Our Policy on Providing Important Information in an
Understandable Manner (Corresponding to Principle 5)

4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

A financial business operator should provide information ina clear, plain, and sincere manner that is not misleading, taking(Note 3)
into account the transaction experience and financial
knowledge of its customers.

Implemented

4. Our Policy on Providing Important Information in an
Understandable Manner (Corresponding to Principle 5)4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

Corresponding section of the status of compliance *6

Principle 2

Pursuit of customers' best interests
A financial business operator should maintain the highest level of
specialized expertise and professional ethics, conduct its business withintegrity and fairness for customers, and pursuit customers’ best interests.
A financial business operator should endeavor to ensure that such business
operations become part of its corporate culture.

(Note)

When conducting transactions with customers, a financial
business operator should aim to secure its stable customer baseand profits by providing high-quality, customer-oriented
services and by pursuing the best interests of customers.

Proper Management of Conflict of Interest
A financial business operator should accurately identify potential
conflicts of interest with customers in transactions, and if there is apotential conflict of interest, it should manage such conflicts of interest
appropriately. A financial business operator should establish a specificpolicy in advance for this purpose.

Principle 3

When determining potential conflicts of interest, a financial
business operator should also consider, for example, theimpact of the following circumstances on transactions orbusiness:

Principle 4(Note)• when a distributor receives payment of fees, etc. from acompany that provides financial products in connection withthe sale, recommendation, etc. of such financial products tocustomers;• when a distributor sells, recommends, etc. products provided
by another company in the same group; and• when a corporate sales division and an investment divisionexist within the same entity or group, and when the investment
division selects a company that has a business relationship or
the like with the corporate sales division as its target forinvestment of assets.

Clarification of Fees, etc.
A financial business operator should provide detailed information offees and other costs incurred by customers regardless of names, in amanner that customers can understand, including what kind of services areprovided in exchange for such fees, etc.

Providing Important Information in an Understandable Manner
Given the asymmetry of information with customers, a financial
business operator should provide important information related to the sales
and recommendations of financial products and services, in addition to thematters indicated in Principle 4 above, in an understandable manner so that
customers can understand.

The followings should be included in the important
information:

Principle 5• basic profits (returns), losses and other risks, and transaction
terms and conditions of financial products and services sold,recommended, etc. to customers;• customer attributes that are assumed to be the target offinancial products sold by a financial business operator that isinvolved in structuring the financial products to be sold,(Note 1) recommended, etc. to customers;• reasons for the selection of financial products and services tobe sold or recommended to customers (including reasons forthe determination that they are based on needs and intentionsof customers); and• if there is a potential conflict of interest with customers
regarding financial products or services to be sold orrecommended to customers, the specific details thereof(including fees, etc. to be received from third parties) and theimpact thereof on the transaction or business.

A financial business operator should provide information in
an understandable manner that is commensurate with thecomplexity of the financial products and services it sells orrecommends to customers. When selling or recommending
simple, low-risk products, a financial business operator should
provide concise information. On the other hand, when selling(Note 4)
or recommending complex or high-risk products, a financial
business operator should make efforts to provide detailed andeasy-to-understand information including basic structures suchas the relationship between risk and return by using materials
that enable customers to compare the product with similar
products.

Implemented

4. Our Policy on Providing Important Information in anUnderstandable Manner (Corresponding to Principle 5)

4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

When providing information to customers, a financial
business operators should differentiate information according(Note 5) to its importance and draw the customers' attention to more
important information by placing special emphasis on suchinformation.

Implemented

4. Our Policy on Providing Important Information in an
Understandable Manner (Corresponding to Principle 5)

4. Providing Important Information in an Understandable
Manner (Corresponding to Principle 5)

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

When a financial business operator sells, recommends, etc.
multiple financial products or services as a package to(Note 2)
customers, it should consider whether the package as a wholeis suitable for the customers.

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

When structuring products, a financial business operator,
which is involved in structuring financial products, should
specify and disclose the customer attributes that they expect tosell the products to, based on the characteristics of the(Note 3)
products. Also, a financial business operator, which isinvolved in selling the products, should ensure that theproducts will be sold in accordance with the specified
attributes of the customers.

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

When selling, recommending, etc. particularly complex or
risky financial products, or when selling, recommending, etc.
products to a group of customers who are vulnerable to(Note 4) damage from financial transactions, a financial business
operator should examine more carefully whether such sales,
recommendations, etc. are appropriate, depending on theproducts and the attributes of customers.

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

A financial business operator should strive to deepen
employees’ understanding of the structure, etc. of the financial(Note 5) products it offers, and actively provide information to its
customers so that they can obtain basic knowledge of thefinancial transactions in accordance with their attributes.

Implemented

5. Our Policy on Providing Suitable Service for Clients(Corresponding to Principle 6)

5. Providing Suitable Service for Clients (Corresponding toPrinciple 6)

Implemented

6. Our Policy on Proper Training and Incentives for
Employees (Corresponding to Principle 7)

6. Proper Training and Incentives for Employees(Corresponding to Principle 7)

Implemented

6. Our Policy on Proper Training and Incentives forEmployees (Corresponding to Principle 7)

6. Proper Training and Incentives for Employees(Corresponding to Principle 7)

Providing Suitable Service for Customers
A financial business operator should understand the customers’ statusof assets, transaction experiences, knowledge, transaction purpose, andneeds and structure, sell, recommend, etc. financial products or services
suitable for each customer.

Principle 6

A financial business operator should keep in mind thefollowing points in selling, recommending, etc. financial
products and services:• after confirming a customer’s intentions, a financial business
operator should first consider the target amount of assets andthe appropriate ratio of safe assets and investment assets basedon the customer’s life plan, etc., and then, the financial
business operator should propose specific financial products or(Note 1)
services based on such consideration;• when proposing specific financial products or services, afinancial business operator should make comparisons withsimilar and alternative products or services (including fees) it
offers across the boundaries of each business law; and• after the sale of financial products or services, a financial
business operator should provide appropriate follow-up basedon the customers' intentions and with consideration for thelong-term perspective.

Principle 7

Framework for Proper Incentives for Employees
A financial business operator should establish a proper framework forincentives and proper governance system such as acompensation/performance evaluation system, employee training, etc.
designed to promote actions to pursue best interests of customers, fairtreatment of customers, and appropriate management of conflicts ofinterest.

(Note)

A financial business operator should inform measures to be
implemented regarding each principle (including notes
attached to them), any alternative measures to be taken, and its
employees who participate in these measures, and should
establish a system to support and verify the performance ofsuch employees.

Inquires
DivisionContact address

Client-Oriented Business Conduct Team
msms_cobc_contact@morganstanley.com*6 Please select “Implemented,” “Partially Implemented,” “Not Implemented,” or “Not Applicable” for each of the principles 2 through 7 of the “Principles for Customer-Oriented Business Conduct” and the notes attached to them and state the corresponding section (names of the items, headings, pages, etc.) of the policies and the status of compliance.
If there is a discrepancy between the correspondence table posted on the financial business operator’s website and this report format, it will not be listed on the financial business operator list.
**The English translation of the Principles is sample translation, and Morgan Stanley MUFG Securities Co., Ltd. has not verified its accuracy and completeness.