The products handled by Mori Building Real Estate Investment Advisory Co., Ltd. (the "Company") and the services it provides are wide-ranging and diversified, and the amount of fees, etc. and calculation methods cannot be presented in advance.
The securities handled by the Company (real estate trust beneficiary rights, equity investment in Tokumei Kumiai) are subject to risks of losses due to fluctuation of prices, rents, etc., of real estate, which is the underlying asset, and changes in interest rates, etc. There is no guarantee of investment capital or yield. Clients are subject to the risk that the value of the securities they invested in may fall below the amount of their original investment.
The Company has set the following as the Expiry Date (*1) for the Professional Investor/General Investor System under the Financial Instruments and Exchange Act:
Expiry Date: September 30 of each year
The Financial Instruments and Exchange Act, which was implemented on September 30, 2007, introduced the "Professional Investor/General Investor System" under which clients are classified as either "Professional Investors" or "Investors other than Professional Investors" ("General Investors").
Under the Professional Investor/General Investor System, "Professional Investors" are excluded from the application of certain regulations that are imposed on the Company as a financial instruments firm, such as the obligation of delivering documents before entering into an agreement (*2).
In the event that a client is classified as (2) or (3) in the "Investor Classification" chart below and the Company accepts the client's request upon completing certain specific procedures, the client is allowed to be reclassified as either a "Professional Investor" or a "General Investor" for each type of contract (*3).
Where the client was classified as (2) and then reclassified as a “General Investor” for a specific type of contract upon its request, such client may also request the Company to revert it back to a “Professional Investor” at any time. In such case, the client will again be classified as a “Professional Investor” upon the acceptance by the Company after completing certain specific procedures. Unless the request for reversion to a “Professional Investor” is made, a client shall remain and be treated as a “General Investor.”
Where a client was classified as (3) and then reclassified as a “Professional Investor” for a specific type of contract upon its request, the effective period for such reclassification would in principle be one year, however, as stated above, since the Company has set the first September 30 after the reclassification as an “Expiry Date,” the client will revert back to a “General Investor” after the Expiry Date. If the client desires to remain reclassified as a “Professional Investor,” such client is required to make a renewal request to the Company within one month before the Expiry Date and to complete certain specific procedures again.
[Investor Classification] | ||
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(1) | Professional Investors (may not be reclassified as General Investors) |
The government of Japan, Bank of Japan, Qualified Institutional Investors |
(2) | Professional Investors (may be reclassified as General Investors) |
Investors stipulated under Paragraph 31-4 of Article 2 of the Financial Instruments and Exchange Act and each item of Article 23 of the Cabinet Office Ordinance on Definitions Provided in Article 2 of the Financial Instruments and Exchange Act including a joint stock company with a capital of 500 million yen or more (*4), companies issuing listed shares, local public organizations, etc. |
(3) | General Investors (may be reclassified as Professional Investors) |
Corporations other than those specified in (1) and (2), and individuals meeting certain requirements (*5) |
(4) | General Investors (may not be reclassified as Professional Investors) |
Individuals excluding those specified in (3) |
(*1) | Refers to the "Expiry Date" stipulated in Paragraph 2-2 of Article 34-3 of the Financial Instruments and Exchange Act. |
(*2) | Clients who are "Professional Investors" are excluded from the application of the regulations stipulated in each item of Article 45 of the Financial Instruments and Exchange Act. |
(*3) | Refers to the "type of contract" mentioned in Article 34 of the Financial Instruments and Exchange Act. |
(*4) | Including joint stock companies whose capital is expected to amount to 500 million yen or more based on a rational judgment of trading conditions and other circumstances. |
(*5) | Refers to the requirements stipulated under each item of Paragraph 1 of Article 34-4 of the Financial Instruments and Exchange Act and Article 61 and Article 62 of the Cabinet Office Ordinance on the Financial Instruments and Exchange Business, etc. |