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GENKAI Retail Management

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GENKAI Capital Management Co., Ltd. > Notice of Cut-off Date for General to Professional Investor Reclassification

Notice of Cut-off Date for General to Professional Investor Reclassification

Genkai Capital Management has set the following annual cut-off date for General to Professional Investor reclassification under the Professional Investor System put in place by the Financial Instruments and Exchange Act:

Reclassification cut-off date: June 30

 

■ Professional Investor System
A system classifying all clients as either Professional Investors or General Investors was introduced when the Financial Instruments and Exchange Act (FIEA) took effect on September 30, 2007. Under this system, clients registered as Professional Investors are exempt from certain provisions of the FIEA that apply to General Investors (for example those enumerated in Article 45, including for example the requirement that certain documents be issued before clients enter into agreements).

 

■ The law allows Professional and General Investors to change classifications under the condition that an established procedure be followed. Genkai Capital Management has set the cut-off date for such reclassification as June 30 within one year of the date on which the change was approved.*
* The date of approval for General to Professional Investor reclassification as stipulated in Article 34-2 Paragraph 3 Item 1, Article 34-3 Paragraph 2 Item 1, and Article 34-4 Paragraph 4, applying Article 34-3 Paragraph 2 Item 1 mutatis mutandis, of the FIEA.

 

■ Once the cut-off date has passed, clients who had reclassified from a General to Professional Investor will revert to a General Investor. Clients who wish to maintain their reclassified status must complete the reclassification procedure again before the cut-off date.

 

■ This official announcement is based on Article 34-3 Paragraph 2 of the Cabinet Office Ordinance Regarding the Financial Instruments and Exchange Act (“Cabinet Office FIEA Ordinance”), Article 58, Article 34-4 Paragraph 6 of the FIEA, and Article 63 of the Cabinet Office FIEA Ordinance.

 

■ Reference: Professional Investor and General Investor Classification
The following table is provided solely to offer an overview of the Professional Investor and General Investor classifications for customer reference. Due to revisions to the underlying legislation and other factors, the indicated classifications may at times be inaccurate. For accurate information, please refer to the applicable provisions of the laws in question, including Article 2 Paragraph 31, Article 34-3 Paragraph 1, and Article 34-4 Paragraph 1 of the FIEA; Article 23 of the Cabinet Ordinance Regarding the Definitions under Article 2 of the Financial Instruments and Exchange Act; Article 61 of the Cabinet Office FIEA Ordinance; and Article 62 of the FIEA.

 

Professional Investor Reclassification as General Investor not permitted
  • The National government
  • Bank of Japan
  • Qualified institutional investors
Reclassification as General Investor permitted
  • Corporations established by action undertaken through a special law
  • Investor protection funds
  • Deposit Insurance Corporation of Japan
  • Agricultural and Fishery Cooperative Savings Insurance Corporation
  • Life Insurance Policyholders Protection Corporation of Japan
  • Special Purpose Companies
  • Companies that have issued shares that are listed on the Financial Instruments Exchange
  • Companies that may reasonably be expected to be capitalized with at least 500 million yen based on their transactions and other circumstances
  • Financial instruments business operators and specially permitted business notifying persons under Article 63 Paragraph 3 of the FIEA
  • Foreign corporations
General Investor Reclassification as Professional Investor permitted
  • Corporations that do not meet the criteria for classification as Professional Investors
  • Persons operating businesses based on Silent Partnership Agreements (except as stipulated by Article 61 Paragraph 1 of the Cabinet Office FIEA Ordinance) and other persons whose status is deemed to be materially equivalent to the same by Article 61 Paragraph 2 of the Cabinet Office FIEA Ordinance
  • Persons satisfying the requirements for being considered materially equivalent to a specified investor in light of their expertise, experience, and assets as stipulated by Article 62 of the Cabinet Office FIEA Ordinance
Reclassification as Professional Investor not permitted
  • Persons that do not meet the above criteria