Its contents are set by the items of Article 37-3, paragraph 1 of the Financial Instruments and Exchange Act and by the provisions of the Cabinet Office Order on Financial Instruments Business, etc. that supplement them12. They cover matters common to all contracts and matters specific to each type of transaction, such as derivatives. Instead of handing over a paper document, the institution may provide the information electronically, after obtaining the client's consent or notifying the client in advance. If the client asks for a paper document, it must be provided on paper3.

The current Article 37-3 of the Act is framed as a duty to provide information, and the name "pre-contract document" comes from Article 79, paragraph 1, item 1(a) of the Cabinet Office Order3. It is separate from the material an institution prepares on its own to explain how a product works (a product explanation). It is also separate from the trade report, which sets out the information provided when a contract is concluded (Article 37-4)4.

Notes

  1. "金融商品取引法" (Financial Instruments and Exchange Act, in Japanese; English translation: Japanese Law Translation), Article 37-3, paragraph 1. ↩

  2. "金融商品取引業等に関する内閣府令" (Cabinet Office Order on Financial Instruments Business, etc., in Japanese), Articles 82, 93, and 94. ↩

  3. "金融商品取引業等に関する内閣府令" (Cabinet Office Order on Financial Instruments Business, etc., in Japanese), Article 79, paragraphs 1 and 2. ↩ ↩2

  4. "金融商品取引法" (Financial Instruments and Exchange Act, in Japanese; English translation: Japanese Law Translation), Article 37-4, paragraph 1. ↩