Client assets and Client Money with Capital Partners Securities are fully segregated and separated from the company’s assets in accordance with the Japanese financial regulatory, the Financial Instrument and Exchange Law.

In such event of company’s bankruptcy, the Client Assets and Money with our firm are fully secured and receive priority procedure if such event occurred.

1. Client Money

• Cash(inclusive of margin collateral)
  Deposited at 2 major Japanese trust banks as “Client Money”

• Margin for Future and Option trading
  Client margin money is directly deposited at applicable stock exchange.

2. Client Assets

• Stock (inclusive of collateral stock), ETF, REIT.
  Securities client holds are deposited at the safekeeping account at Japan Securities Depository Center, Inc. (JASDEC) as “Client Assets” and are fully segregated from the company’s assets.

• Domestic Funds(inclusive of MRF)
  Funds client holds are fully recorded and maintained in our Book-Entry System which is duly referred to each custodian banks. The custodian banks are obliged to keep client assets separately from the bank’s assets.

• Foreign Equities, Bonds, Funds,
  Non-domestic instruments client holds are fully verified and maintained with our book transfer system which is referred to each custodian banks in overseas for safekeeping.

The list of custodian banks for safekeeping