1. P.R.I.M.E. Finance Panel of Recognized International Market Experts in Finance Asia and Middle East – The Use of ADR in Resolving International Financial Disputes: Financial ADR in Japan Presentation by Akihiro Wani 2016 P.R.I.M.E. Finance Annual Conference 25 & 26 January, Peace Palace, The Hague

2. a. Outline 1.In 2010 Financial ADR System (under the Financial Instruments and Exchange Act, the Banking Act, and the Insurance Business Act) became operative in Japan. There are separate procedures for arbitration under the Arbitration Act or mediation under the Civil Mediation Act. 2.Suggested Merits (1)Accessibility, Speed and Inexpensiveness (2)Confidentiality (3)Specialization (4)Neutrality and Fairness (5)Financial institution’s duty to be the respondent and to cooperate with the procedures. (6)Flexibility of solutions – Gray zone solutions (7)Feedback to market practices 3.Performance (1)Rapid increase in cases from 2009 through 2011 and rapid decrease thereafter – the impact of FX derivatives disputes (Now Yen is weaker). (2)Successful settlement: Roughly 40% (2013). Time required to conclude the procedures: More than 70% of the cases are concluded in half a year (2013).

3. b. Challenges 1.No binding facts findings nor legal holdings. 2.No compulsory disclosure of evidence. 3.Pursuit of the convenience for the investors. 4.Relationship between settlement and compliance. 5.No idea of extraterritorial application.

4. c. Future Possibility for P.R.I.M.E. Finance In regard to cross-border financial disputes, arbitration is the only available procedure. However, the arbitration has a rigid mechanism. Also the existing arbitration bodies in Japan do not have capabilities in handling complicated cross-border transactions where Japanese institutions are involved. A good frontier for P.R.I.M.E. Finance? - End-

5. P.R.I.M.E. Finance Panel of Recognized International Market Experts in Finance 2016 P.R.I.M.E. Finance Annual Conference 25 & 26 January, Peace Palace, The Hague