Financial Services Agency

November 16, 2005 Financial Services Agency Rakuten Securities Australia Administrative actions against joint-stock companies 1. Rakuten Securities Australia Based on Article 59, Paragraph 1 of the Securities and Exchange Act, we asked the stock company to report according to Financial Supervisory No. 2690 dated September 20, 2005 and Financial Supervisory Supervisory Agency No. 3045 dated October 27, 2005. The following violations of laws and regulations were found. Situation in which it is recognized that the management of the electronic information processing system related to the securities industry is insufficient. I have just been ordered to report the cause of the occurrence and measures to prevent recurrence. In response to this, the Company will implement measures to prevent recurrence, such as strengthening the system and increasing the number of call center operators, in a planned and step-by-step manner. From the viewpoint of preventing failures during the period, a report was submitted to the authorities on September 26 to the effect that thorough operational management, such as capacity management, would be implemented. After that, on October 24, 2018, we also experienced a system outage for a long period of time. This was due to the addition of new products without the This is due to almost the same cause as the failure that occurred on August 29, 2019. Contrary to the content of the above report, we have taken appropriate measures to prevent a recurrence of failures that have caused system outages for a long period of time. It is recognized that it was not executed on time. The above situation of our company is based on Article 10-11 of the Cabinet Office Ordinance on Act Regulations for Securities Companies based on Article 43-2 of the Securities and Exchange Act, which states that “the management of electronic information processing systems related to the securities business is adequate. It is recognized that it falls under the situation where it is recognized that it is not. 2. Based on the above, the following administrative actions were taken against the company today. [Business Improvement Order] (1) Fully confirm and examine the current state of the system and take necessary measures to prevent new system failures. (2) Ensuring the stable operation of the system as soon as possible, and striving for prompt recovery in the event of a system failure and appropriate customer service. (3) Clarify who is responsible for the recurrence of long-term system outages due to system failures. (4) Report in writing by November 30th the status of the system enhancements scheduled for November 26th, and take appropriate measures based on this report. Regarding (1) to (3) above, please report in writing by December 15, 2005 the status of the response.