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 |
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Reclassification as General Investor permitted |
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General Investor | Reclassification as Professional Investor permitted |
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Reclassification as Professional Investor not permitted |
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