Member Contributions
JIPF has established an investor protection asset portfolio to fund the necessary expenses for its indemnification operations and other activities. To finance this portfolio, JIPF has set up a compulsory contribution system for its members in accordance with the provisions of its operating regulations.
In calculating compulsory contributions, the JIPF sets the basic amount to be collected at ¥5.0 billion. The amount of contribution required of each member to reach this target is collected in the following manner: 20% is divided up equally by the number of members, 40% is determined as a member’s proportion of the operating profits of all members two fiscal years ago, and 40% is determined as a member’s proportion of the indemnifiable assets of customers of all members two fiscal years ago.
Provided, however, that if the portfolio has assets in excess of the targeted size of ¥50.0 billion, no compulsory contributions will be required of existing members and new members shall be required to pay a membership fee of ¥4 million for their first year only.
Scale of asset portfolio of JIPF
As of March 31, 2011, JIPF’s asset portfolio was valued at approximately ¥55.0 billion.
JIPF was established with an asset portfolio of ¥33.3billion in 1998. Changes since the starting point are shown in the graph in Appendix 1.
Borrowing limits
Under the FIEA and related enforcement ordinances, JIPF is authorized to borrow up to ¥70.0 billion from financial and other institutions.
Indemnifiable Amounts
Based on a request by general customers, excluding institutional investors, of securities firms, banks, and other eligible firms, on the date that JIPF confirms that a member will find it difficult to restitute its customers for assets held in trust, JIPF will pay up to ¥10 million per customer in regard to their legally protected assets under the FIEA and related enforcement ordinances.
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