Our Compliance Measures

Purpose of Compliance
As a company affiliated with Shinsei Bank, which has a significant role to play for the public good and responsibilities to society, and as a servicer licensed to operate by the Minister of Justice, Shinsei Servicer complies with all laws and regulations and believes the purpose of compliance is to abide in all respects by the norms of society.

Shinsei Servicer, therefore, created its "Code of Ethics" ("The Charter of Corporate Ethics" and "The Staff's Code of Conduct") and "Code of Conduct" as part of our efforts to strengthen and elevate our "compliance posture". All Shinsei Servicer employees throughout the company have pledged to pursue their work with good judgment and self-discipline.

Shinsei Servicer has compiled its "Compliance Guidelines" as a set of concrete ethical standards.

Definition of Compliance and Compliance Measures
Shinsei Servicer defines "compliance" as "obeying laws and regulations and abiding by social norms." As a servicer licensed by the Minister of Justice to engage in servicing operations, Shinsei Servicer will maintain sound management and, fulfilling the trust represented by its license to operate, will actively work for the benefit of Japan's economy and society. Securing the confidence of society is a critical mission for the company and that requires our employees to pursue their work with a high sense of professional ethics.
Shinsei Servicer complies with all laws and regulations related to its work, and believes that it is absolutely essential to abide by social norms and to engage in fair business practices based on its firm sense of ethics. At Shinsei Servicer, we practice thorough "compliance" by following our "Compliance Guidelines", "Code of Ethics", "Code of Conduct", "Compliance Manual", and other related rules and regulations.

　

　

　

The Enactment of the Servicer Law and the Current Status of Servicer Work

Prior to the enactment of the Servicer Law, it had been illegal, according to the Practicing Attorney Law, for anyone other than a lawyer to attempt to collect debts on behalf of creditors. The purpose of this restriction was to prevent anti-social influences from taking part in this business. However, to bring private sector capabilities to bear a part in this to swiftly resolve the enormous amount of non-performing loans held by financial institutions, the "Law Concerning Special Measures for Servicing Business" (the "Servicer Law") was enacted in October 1998.

The purpose of the Servicer Law is to contribute to the revitalization of the Japanese economy, and the Servicer Law takes two methods toward that end. First, it requires the Minister of Justice license for a non-lawyer to engage in this business. This enables a servicing company to manage and collect specified money claim as its legal business, to exclude anti-social influences' participation in this scheme and to protect the interested parties such as borrowers. On the other hand, it regulates servicing companies' activity upon necessity to secure their fair management The Servicer Law was revised as of September 1, 2001 to expand the scope of loan types that servicing companies could handle. In consequence, the precondition has been settled to thoroughly respond to the market's needs.

Now, servicers' work is no longer restricted to non-performing loans, which was focused in the original Servicer Law. Servicers may now engage in work incidental to the servicing operations, processing of bankruptcies, revitalization of companies, securitizations and enhancement of asset liquidity, and may play various roles in a wide array of fields. As such, servicers, working within the financial sector, are contributing to the sound development of the Japanese economy.