IFIE/IOSCO Investor Education: International Conference Funding Investor Education of JSDA

1. IFIE/IOSCO Investor Education: International ConferenceFunding Investor Education of JSDA March 2, 2009 Institute for Securities Education & Public Relations Japan Securities Dealers Association

2. Accounts for Investor Education • Institute for Securities Education and Public Relations in the Japan Securities Dealers Association (JSDA) is tasked with Investor Education, dissemination and enlightening of securities knowledge. • The institute is funded from the Association’s “special accounts,” which are separate from the “general accounts” of the main body of JSDA.

3. Investor Education Activities of JSDA(1) For Students and Teachers • JSDA Alone - Educational program on investment for junior high & high schools - Seminars and internship program for school teachers - Support for “All Japan Securities Research Association of University Students” • Joint Activities by 9 Securities Organizations - Hands-on experience-based educational materials - Forums for financial education and offering lectures on educational materials - Website for school students (http://www.shokenquest.jp) - Information publication for school teachers - Securities-related program at the Open University of Japan • Joint Activities with Tokyo Stock Exchange Group - Stock trading game

4. Investor Education Activities of JSDA(2) For General Consumers • JSDA Alone - IR seminars - Publishing and distribution of booklets for the public - Securities information office - Public relations on securities system, etc. - Website (http://www.skkc.jp) - Support for the non-profit investor education organization --- APROSIS • Joint Activities by 9 Securities Organizations - Anniversary events ・ Securities investment day (October 4th) ・ Spring events

5. Total Operating Expenses • Total operating expenses (budget basis) of our activities in FY2008, including joint project with other organizations, amounted to \693.4 million (≒$7.7million). • Operating expenses for dissemination and enlightening of securities knowledge by Category

6. Two Main Areas of Activities • Our activities can be roughly divided intotwo areas, (1) for schools (for students and teachers)and (2) for the public (for general consumers). • These two areas account for (1) 29.8% and (2)70.2% of total operating expenses, respectively.

7. Project for Dissemination of Securities Knowledge • Joint activities by 9 securities organizations refer to the Project for Dissemination of Securities Knowledge. • Joint activities; offering study material for school students, conducting educational seminars for school teachers, conducting lectures and talk shows for the general consumers. • 9 organizations; JSDA, Tokyo Stock Exchange Group and 5 Domestic Stock/Securities Exchanges, Investment Trust Association, Nagoya Stock Exchange Members Association

8. Financial Resources for Activities • Financial resources for our activities are diversified, coming from three sources of (1)JSDA’s own financial resources, (2)grants from Capital Market Promotion Fund(CMPF), (3)contributions from other organiza-tions with which JSDA conducts joint activities. • Composition of Financial Resources for our activities

9. What is Capital Market Promotion Fund ? • Capital Market Promotion Fund was established in January 1965, following the dissolution of Japan Securities Holding Association, which was set up as recipient of shares of securities firms, at the time of the securities recession in the mid 1960s. • When founded, it was decided to use the half of the foundation profit for capital market promotion 〔Initial capital was approximately \22.8 billion (≒$253million)〕.

10. Composition of financial resources for funding activities for two main areas • CMPF provides nearly 60% of the financial resources funding activities for schools, while JSDA supplies 70% of the financial resources funding activities for the public. ○For schools○For the public

11. Increasing Difficulty in Securing Financial Resources • Due to the current financial crisis worldwide, difficulty in securing financial resources is increasing. • We are continuing to stress the importance of our dissemination and enlightening of securities knowledge activities to JSDA members and also broadly to the public. • Nevertheless, we will be reducing the allocation of JSDA’s own financial resources to next year’s fiscal budget, primarily for public relations activities. • However, the grants from CMPF will increase in other areas, particularly the JSDA/IFIE investor education seminars scheduled for this ｆall.

12. Contriving Effective Ways to Use Our Limited Budget • Appealing to the mass media to give us a high degree of media coverage of our activities on TV or in newspapers for free. • Cost cutting in sending invitations to teachers for every one of our events because our support of the voluntary research activities of teachers draws attention to our activities, leading to an increase in participants to our events and the expansion of our activity basis.

13. Conclusion • Going forward, we expect the current difficult business climate for Japan’s securities industry to continue. • We are going to endeavor to secure the necessary financial resources by strongly promoting the importance of our investor education activities. • In conjunction with these efforts, we will continue to contrive ways to use our limited budget.

14. Thank You Norio INOMATA General Manager, Securities Education Division Institute for securities Education & Public Relations Japan Securities Dealers Association E-mail: n_inomata@wan.jsda.or.jp Website: http://www.jsda.or.jp/