On October 29, 2015 Regarding dispositions against members of the Financial Futures Association of Japan Today, the Association took the following dispositions against members of the Association based on Article 19, Paragraph 1 of the Articles of Incorporation. Note 1. Name of the association member who received the disposition kabu.com Securities Co., Ltd. 2. Disciplinary action Remarks 3. Reason for disposition ○ Insufficient system management (1) Extremely inappropriate system failure management When the Securities and Exchange Surveillance Commission inspected the status of system failure management at the Company, it was found that the date and time of occurrence and the event were different. Multiple system failures were combined into one incident, and the number of incidents reported to Executive Officers was significantly lower than the number of system failures that actually occurred. Disability management was found to be in a highly inadequate situation. (2) Inadequate management of system development The Company is unable to detect program defects, etc. in the development process through testing due to omissions in basic test items in the guidelines that stipulate quality control in system development. , poor quality control and numerous system failures that affect customers after development. (ii) Progress management of system development was not implemented as stipulated in internal regulations, and executive officers, etc., were only informed of the details of system development work, and the status of progress and delays was properly managed and understood. What is not possible. From the above, it was recognized that there were deficiencies in the management of our system development. (3) Situation where internal audits are not functioning There is a shortage of auditors who have the knowledge to detect problems in the practical operation of the system. However, it was reported to the Board of Directors, etc. that it was confirmed that there were generally no problems with these matters. Based on the above, it is considered appropriate to take a disciplinary action based on Article 19, Paragraph 1, Item 3 of the Articles of Incorporation, as it is recognized that the provision is applicable. 4. Along with this disposition, on the same date, based on Article 16 of the Articles of Incorporation, in order to prevent the recurrence of such violations in the future, "analyze the cause of the inappropriate system risk management system and clarifies the whereabouts of the system failures and reviews the business management system,” and “verifies past system failure cases, including cases where processing was not performed in accordance with the management standards for system failures. To build an effective system risk management system by categorizing the incidents and countermeasures, etc.,” and “To make officers and employees aware of the importance of system development We will work to strengthen the system development management system by reviewing regulations and business procedures and implementing training, etc.” At the same time, we made a recommendation to strengthen the function of the internal audit department. that's all