Correspondence Chart Regarding Customer-Oriented Business Conduct (BNP Paribas Securities (Japan) Limited)

【Pursuit of the Customers’ Best Interests】

Financial Business Operators should act in the best interests of their customers through carrying out business towards customers in a faithful and fair manner, maintaining a high level of sophistication and professional ethics. Financial Business Operators should endeavor to solidify such business conduct as part of the corporate culture.

【Appropriate Management of Conflicts of Interests】

Financial Business Operators should correctly understand potential conflict of interests when transacting with customers, and when a conflict of interests potentially exists, to manage such conflict appropriately. Financial Business Operators should have in place detailed policies regarding this topic.

• Cases where a Financial Business Operator receives an agency commission for the sale or solicitation of a financial product, from the firm who provided the product;
• Cases where a Financial Business Operator sells a financial product, which is provided from another firm in the same group entity, to their customers
• Cases where an asset management team, who is within the same entity or the same group as corporate-facing sales force, invests in firms with whom the corporate-facing sales force has business relationship.

【Disclosure of Commissions, Fees and Other Costs】

Financial Business Operators should provide their customers with detailed information of commissions or other fees charged to the customer, including for what service such commissions or fees are for, in a way the customer can understand.

【Provide Important Information in a Clear Way】

Financial Business Operators should provide their customer with important information regarding the sale or solicitation etc. of financial products or/and services in addition to what is stated under Principle 4 above, in a way the customer can easily understand, considering the asymmetry in the amount and quality of information that can be obtained between the customer and the Financial Business Operator.

• Basic returns, losses and other risks, and conditions of the trade of the financial product / service being offered towards customers;
• Type of customers which the Financial Business Operator involved in the manufacturing of the products or services offered assumes.
• Reason for selecting the financial product / service being offered to the customers (including reasons for the Financial Business Operator to determine that the products or services fit the customer’s needs and intention);
• Conflict of interest, if any, and its details (including. commission fees, etc., paid from third-parties) as well as explanation on the effect such conflict has on the transaction or business regarding the financial product / service sold or solicited to customers;

【Provide Suitable Financial Products/Services to Customers】

Financial Business Operators should structure / sell / solicit financial products / services that are suitable for the particular customer, by understanding the customer’s status of assets, transaction record, knowledge level, purpose of transaction and needs.

• Proposals for specific financial products and services (including fees) must be provided in comparison to similar products / services and substitute products / services handled by the Financial Business Operator, in a transversal way beyond the boundaries of each business law.
• Conduct appropriate follow-up after the sale of financial products and services, with a long-term perspective, and based on the customer’s intent.

【Appropriate Framework Etc. to Incentivize Employees】

Financial Business Operators should establish a compensation / performance evaluation processes, training framework, and other framework which appropriately incentivizes employees, as well as an effective corporate governance framework designed to promote the pursuit of customers’ best interests, fair treatment of customers and effective management of conflicts of interests .