June 14, 2007
Financial Services Agency
Government of Japan

Minister Yamamoto and EU Commissioner McCreevy Meet to Discuss Financial Services and in particular Accounting and Auditing Issues

On June 13, Mr. Yuji Yamamoto, Minister for Financial Services met with Mr. Charlie McCreevy, Commissioner for the Internal Market and Services of the European Commission (EC).

The following is the Press Release announced after the meeting.

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June 13, 2007
Financial Services Agency,
Government of Japan

Minister Yamamoto and EU Commissioner McCreevy Meet
to Discuss Financial Services and in particular Accounting and Auditing Issues

1. On June 13, Mr. Yuji Yamamoto, Minister for Financial Services met with Mr. Charlie McCreevy, Commissioner for the Internal Market and Services of the European Commission (EC). The meeting was attended by Mr. Hirofumi Gomi, Commissioner of Financial Services Agency (JFSA) and Mr. Jörgen Holmquist, Director-General in DG Market of the EC.
2. Minister Yamamoto and Commissioner McCreevy exchanged views on the recent developments in the Japanese and the EU capital markets, including the introduction of the Japanese Financial Instruments and Exchange Law (FIEL) and the EU Market in Financial Instrument Directive (MiFID).
3. Minister Yamamoto explained the efforts to enhance the attractiveness of the financial and capital market in Japan as an international financial center. Commissioner McCreevy, in this context, showed a particular interest in the potential initiatives underway, including issues of the firewalls regulation.
4. Minister Yamamoto and Commissioner McCreevy welcomed the on-going dialogue and efforts that address the issue of accounting standards aiming to find a satisfactory solution on equivalence between Japanese and EU-adopted standards. Commissioner took note of the progress in the convergence work by the Accounting Standards Board of Japan (ASBJ), while Minister emphasized the importance of maintaining the openness in the European market.
5. Minister Yamamoto and Commissioner McCreevy agreed on the necessity to enhance mutual understandings and co-operation in the area of auditing including audit oversight systems. A final goal should be to move towards mutual reliance on each others' regulatory systems. Work will involve looking into many aspects, such as systems on quality assurance supported by adequate auditing standards, investigations and penalties, and public oversight.
6. Both parties agreed to hold a technical-level meeting before the end of this year to monitor the developments in both accounting and auditing areas.