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Application Procedures for an Applicant Seeking Approval as an FIP in the JGB Book-Entry System

Effective from: June 1, 2001
Revision: July 15, 2005

January 11, 2006

July 14, 2006

January 1, 2007

October 1, 2007

January 5, 2009

July 17, 2009

October 29, 2010

July 15, 2011

March 31, 2013

June 30, 2016

Upon receiving an application from an entity seeking approval as a Foreign Indirect Participant in the JGB Book-Entry System (hereinafter referred to as an "FIP") based on the Act on Book-Entry Transfer of Company Bonds, Shares, etc. (Act No. 75 of 2001) (hereinafter referred to as "an applicant"), the Bank of Japan (hereinafter referred to as "the Bank") reviews the Application Form to determine whether the applicant fulfills the requirements set out in the "Requirements for Establishing Direct Participants' Accounts and Customers' Accounts and Requirements for Approval as Indirect Participants and Foreign Indirect Participants in the JGB Book-Entry System" (effective from January 27, 2003).

When the Bank determines that the applicant fulfills the requirements above and receives the necessary documents listed in paragraph 4 below, it will grant approval as an FIP.

An applicant should follow the procedures below.

1. Assignment of the Contact Person in Japan

Please appoint a Contact Person in Japan.

A Contact Person in Japan means any entity (a corporate body or an individual), who communicates with the Bank for the applicant relating to the JGB Book-Entry System and who has an address in Japan (Article 5, Paragraph 3, Item 5 of the "Rules Concerning the JGB Book-Entry System"). The Bank will contact the applicant via the applicant's Contact Person in Japan and send documents such as regulations relating to the JGB Book-Entry System to the applicant via the Contact Person. This also applies after the applicant becomes an FIP.

In order to ensure smooth communication, each FIP can appoint only one Contact Person in Japan at a time.

2. Submission of the Application Form

An applicant should complete the Application Form Attachment 1 [ZIP 467KB] and submit it to the Bank's Operations Department via the applicant's Contact Person in Japan appointed in paragraph 1 above, prior to submission of other documents such as a Letter of Intent (see paragraph 4 below).

Note: Please complete the "Main Text" of the Application Form and the relevant Annexes according to the instruction in the "Main Text."

3. Review of the Application Form by the Bank

By reviewing the Application Form, the Bank will determine whether the applicant fulfills the requirements for approval as an FIP, for example the applicant's financial condition and operational capability.

The Bank may, in reviewing the Application Form, ask the applicant via the Contact Person in Japan for additional information in order to verify and supplement the information provided in the Application Form.

4. Submission of the Letter of Intent and Other Documents

The applicant is asked to submit documents listed below upon request from the Bank.

(a) Letter of Intent

A Letter of Intent stating the applicant's intent to be approved as an FIP and its request regarding the Designated Participant with whom the applicant wishes its account to be established.

Note: An FIP must have its account established with a Designated Participant. A Designated Participant may be a Direct Participant, an Indirect Participant, or an FIP. Upon request from an applicant, the Bank will designate a Designated Participant for that applicant.

The Bank will provide the applicant with a specified form of a Letter of Intent, and the applicant should fill it in.

(b) Representations

See Attachment 2 [PDF 62KB]. The English translation has been prepared for convenience only. Note that the Japanese text is deemed as the original text and the applicant must submit the Japanese text of the Representations signed by the representative of the applicant.

Note: The "representative" in this paragraph means any person who has been granted the legal authority regarding the applicant's admission in the JGB Book-Entry System.

(c) Legal Opinion

A Legal Opinion from a law firm in respect to the validity of the information provided in the Representations.

See Attachment 3 [PDF 69KB] for an example of a Legal Opinion.

See Attachment 4 [PDF 36KB] for reasons for requiring the submission of a Legal Opinion in respect to the validity of the information provided in the Representations.

(d) Commercial Register

A Commercial Register that officially confirms registration of incorporation or any document similar thereto.

The Commercial Register must be submitted to the Bank within six months from the date it was issued. The Bank verifies the applicant's name and its head office's address by the Commercial Register.
If the address of the applicant's head office is not provided in the Commercial Register, please inform the Bank in advance.

(e) Certifications

Documents to be submitted by the applicant certifying the power and the signature of the representative of the applicant.

The Certifications must be submitted to the Bank within six months from the date they are issued.

(f) Letter of Agreement (When the Applicant Is a "Securities Clearing and Settlement System")

A written agreement to provide information requested by the Bank. The letter is necessary when the Bank has determined that the applicant is a "securities clearing and settlement system" as defined in the "Requirements for Establishing Direct Participants' Accounts and Customers' Accounts and Requirements for Approval as Indirect Participants and Foreign Indirect Participants in the JGB Book-Entry System."

The "securities clearing and settlement system" is requested to agree to submit information related to its clearing and settlement business on a continuing basis, so that the Bank can confirm, inter alia, the safety and efficiency of such business.

5. Granting of Approval to Become an FIP

When the Bank has decided to grant approval to become an FIP, it will send a notification of approval to the applicant via the Contact Person in Japan.
Depending on the type of business and the financial condition of the applicant, the Bank may, after consultation with the applicant, add certain conditions to the approval, as it deems necessary.

Inquiries

Banking and Government Securities Planning Group, Planning and Coordination Division, Operations Department

E-mail : post.fip@boj.or.jp

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