Operational Rules
Chapter I. General Provisions(Purpose)
Article 1.
The purpose of these Operational Rules is to prescribe, pursuant to the provisions ofArticle 79-3, Paragraph 1 of the Financial Instruments and Exchange Act (Act No. 25 of1948; hereinafter referred to as “FIEA”) and Paragraph 1 of Article 9 of the Articles ofIncorporation, the matters set forth in each Item of Article 79-3, Paragraph 1 of FIEA andthe methods of the businesses provided for in each Item of Paragraph 1 of Article 8 of theArticles of Incorporation.

Chapter II. The Association’s Businesses(Business pertaining to Compliance with Laws, Regulations, etc. by RegularMembers and Electronic Public Offering Members)
Article 2.
1. The Association shall provide guidance and admonition, and conduct other businesses
in order to cause Regular Members and Electronic Public Offering Members tocomply with the provisions of FIEA, other laws and regulations, the Articles ofIncorporation and other rules (including the detailed regulations, guidelines,resolutions, etc. thereunder; hereinafter referred to as “Laws, Regulations, etc.”))when they conduct Self-Offering and Other Transactions, etc. (referring to the SelfOffering and Other Transactions set forth in Item (9) of Article 3 of the Articles ofIncorporation; the same shall apply hereinafter).
2. The Association shall strive to grasp the situation of compliance with Laws andRegulations, etc. by Regular Members and Electronic Public Offering Members byperforming inspection of Regular Members and Electronic Public Offering Members.
3. If, as a result of performing the inspection pursuant to the provision of the preceding
Paragraph, it is determined that the situation of compliance with Laws andRegulations, etc. by any Regular Member or Electronic Public Offering Member isinappropriate, the Association shall provide necessary guidance and admonition to therelevant Regular Member or Electronic Public Offering Member as prescribed by“Rules Concerning Disciplinary Actions, etc.” (hereinafter referred to as“Disciplinary Actions Rules”).

14. The Association shall perform the inspection of Regular Members and Electronic
Public Offering Members in accordance with the provisions of “Inspection Rules.”(The Association’s Business to Assure Appropriateness of Businesses of RegularMembers and Electronic Public Offering Members)
Article 3.
1. The Association shall perform investigation, provide guidance and admonition, orconduct other businesses, in relation to Self-Offering and Other Transactions, etc.
conducted by Regular Members and Electronic Public Offering Members, that arenecessary to achieve appropriateness of the contents of the contracts, to achieve
appropriateness of the management of the assets, or otherwise to protect investors.
2. The Association shall strive to grasp the condition of business operation of RegularMembers and Electric Public Offering Members by performing investigation of therelevant Regular Members and Electric Public Offering Members.
3. The provision of Paragraph 3 of the preceding Article shall apply mutatis mutandis tothe investigation of the condition of business operation of Regular Members andElectronic Public Offering Members which is provided for in the preceding
Paragraph.
4. In the case where the Association performs the investigation of Regular Members andElectronic Public Offering Members as provided for in Paragraph 2, the provision ofParagraph 4 of the preceding Article shall become applicable by deeming the relevant
investigation as the inspection prescribed in Paragraph 2 of the preceding Article.
(Investigation, Disciplinary Action, etc. against Regular Members and Electronic
Public Offering Members)
Article 4.
1. The Association shall investigate the situation of compliance with laws andregulations, orders pursuant to laws and regulations, dispositions pursuant to theforegoing, the Articles of Incorporation and other rules, or the fair and equitableprinciples of transactions by Regular Members and Electronic Public Offering
Members, as well as the condition of their business and assets.
2. In the event the Association has grasped a fact, as a result of conducting theinvestigation in respect of any Regular Member or Electronic Public Offering
Member pursuant to the provision of the preceding Paragraph, that the relevant
Regular Member or Electronic Public Offering Member violated Laws andRegulations, etc., the Association shall take disciplinary actions or implement othernecessary measures against the relevant Regular Member or Electronic Public
Offering Member as prescribed by the Articles of Incorporation and Disciplinary
Actions Rules.

23. In the case where the Association performs the investigation of Regular Members andElectronic Public Offering Members as provided for in Paragraph 1, the provision ofParagraph 4 of Article 2 shall become applicable by deeming the relevant
investigation as the inspection prescribed in Paragraph 2 of Article 2.
(Solving Complaints, Mediating Disputes)
Article 5.
1. The Association shall conduct business pertaining to solving complaints brought byinvestors against, or pertaining to mediation if dispute exists in relation to, SelfOffering and Other Transactions, etc. conducted by any Regular Member orElectronic Public Offering Member.
2. The Association shall strive to resolve the issues handled under the business of thepreceding Paragraph from a fair and neutral ground.
3. The business pertaining to solving complaints and mediating disputes which isprovided for in Paragraph 1 shall be performed as prescribed in “Complaints
Processing Rules.”4. Pursuant to the provision of Article 78-8, Paragraph 1 of FIEA, the Association shallentrust the business of solving complaints and mediating disputes to a person who hassufficient financial basis and personnel structure required for performing suchbusiness properly.
5. In making the entrustment which is provided for in the preceding Paragraph, theAssociation shall conclude any written agreement necessary for the relevant
entrustment of business.
(Establishment, Amendment or Abolishment of Rules)
Article 6.
1. The Association shall establish, amend or abolish self-regulatory rules which are tocontribute to achieving appropriateness of solicitation of transactions pertaining toSelf-Offering and Other Transactions, etc. conducted by Regular Members andElectronic Public Offering Members, the Association’s management rules for
performing the Association’s businesses, as well as other rules.
2. The establishment, amendment and abolishment of the rules provided for in thepreceding Paragraph shall be made by resolution adopted by the Board of Directors.

(Publicity Activities, Enlightenment Activities and Dissemination of Knowledge
Targeting at Investors, etc.)
Article 7.

3In order to enhance the understanding of investors, etc. regarding Self-Offering and OtherTransactions, etc. conducted by Regular Members and Electronic Public Offering
Members, the Association shall strive to make it widely known and disseminate therelevant knowledge to investors, etc. and enlighten them about it, by engaging inpublicity activities through such means as preparing and publishing advertisements fornewspapers and magazines, a homepage, various types of publications and various typesof statistical materials.
(Other Businesses)
Article 8.
In addition to the businesses provided for in each of the preceding Articles (except forArticle 1), the Association shall conduct the businesses set forth below in order tocontribute to the sound development of Self-Offering and Other Transactions, etc.
conducted by Regular Members and Electronic Public Offering Members, and also tocontribute to protection of investors:(1) Conducting researches and studies regarding Self-Offering and OtherTransactions, etc.;(2) Providing examinations, training, etc. for the officers and employees of RegularMembers and Electronic Public Offering Members;(3) Providing support for the efforts to eliminate anti-social forces;(4) Promoting exchange and cooperation with related organizations, etc., andexchange of opinions and communications among Regular Members andElectronic Public Offering Members;(5) Making proposals, requests and communications to the relevant government
agencies and other relevant organizations; and(6) Conducting other businesses that are necessary to accomplish the purpose of theAssociation.
(Partial Entrustment of Business)
Article 9.
1. The Association may entrust part of the businesses provided for in Articles 2 through4 to Authorized Association or other Certified Association pursuant to the provisionof Article 23, Paragraph 1 of Cabinet Office Order on Financial Instruments Firms
Associations (Cabinet Office Order No.53, 2007).
2. In making the entrustment which is provided for in the preceding Paragraph, theAssociation shall conclude any written agreement necessary for the relevant
entrustment of business.

4Chapter III. Others(Establishment of System for Protecting Personal Information)
Article 10.
The Association shall establish appropriate management system by establishing the rules
concerning management of security, etc. of personal information in order to prevent
leakage or loss of, or damage to, information pertaining to the individuals which theAssociation handles in performing its businesses. Furthermore, the Association shall notuse such information as the race, creed, lineage or original domicile, or any other special
non-public information (referring to the non-public information which the Association
has come to know in relation to its business) regarding the individuals which theAssociation handles in performing its businesses, for any other purpose than the purpose
for securing appropriate operation of the Association’s businesses and other purposes thatare recognized to be necessary.
Supplementary Provisions (May 20, 2011)
These Operational Rules shall become effective from the date on which the Associationis certified by the Prime Minister as Financial Instruments Firms Association provided
for in Article 78, Paragraph 1 of FIEA (June 30, 2011).
Supplementary Provisions (December 19, 2014)
This amendment shall become effective from the date (May 29, 2015) provided for in themain text of Article 1 of the Supplementary Provisions of the Act for Amendment of theFinancial Instruments and Exchange Act (2014, Act No. 44).
(Note) Amended provisions, etc. are as follows:(1) Amended the headword and the main text of Article 2;(2) Amended the headword and the main text of Article 3;(3) Amended the headword and the main text of Article 4; and(4) Amended Articles 5, 6, 7 and 8.
This translation is solely for the convenience of those interested therein, andaccordingly all questions that may arise with regard to the meaning of the words orexpressions herein shall be dealt with in accordance with the original Japanese text.

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