Financial Services AgencyFSA Weekly Review No.565

December 7, 2023
(Updated: April 11,2024)

What’s New on the FSA Website

Week of November 24, 2023 - November 30, 2023

This page contains the latest in events, developments, and updates to the FSA website.

Public Comments

November 28, 2023 Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc." after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc." after public consultation.
 
The finalized Cabinet Office Order:
- provides amendments reasonably considered necessary to enable special financial instruments business operators (Type I financial instruments business operators with total assets exceeding one trillion yen) to comply with various consolidation regulations under IFRS (International Financial Reporting Standards) and other relevant and applicable standards, and
- sets forth that Type I financial instruments business operators and registered financial institutions are not required to file a "Report on Affiliated Companies" if they do not have any reportable affiliated companies.
 
The finalized Cabinet Office Order will be enforced on March31, 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/shouken/20231128/20231128.htmlopen new window
November 27, 2023 Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" alongside the draft amendments to other relevant and applicable comprehensive guidelines for public consultation
<Summary>
The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" alongside the draft amendments to other relevant and applicable comprehensive guidelines* (hereinafter collectively referred to as the "proposal") for public consultation. 
Socioeconomic activities are beginning to normalize following the downgrade of category classification of COVID-19 Infection to Class V Infectious Disease (equivalent to seasonal flu) under the "Infectious Disease Act" in May 2023. 
In response to a concern that an inability to repay the virtually interest-free unsecured loans extended by private financial institutions (FIs) amid the COVID-19 crisis can cause failures of corporate borrowers, the proposal is aimed at encouraging FIs to further extend tailored business support to corporate borrowers in terms of management improvement and business revitalization according to the actual state of their businesses, not limited to financial (cash management) support. 

Public comments will be accepted until 6:00 p.m. (JST), January 5, 2024. 

*Other relevant and applicable guidelines are as follows:
- Comprehensive Guidelines for Supervision of Major Banks, etc.
- Comprehensive Guidelines for Supervision of Cooperative Financial Institutions (provisional English title), and
- Comprehensive Guidelines for Supervision of Fisheries Cooperatives Engaging in Credit Business (provisional English title).

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231127-2/20221127.htmlopen new window
November 27, 2023 Publication of the draft "Order to Amend the Order for Enforcement of the Postal Service Privatization Act" and the draft "Order to Amend the Order on Limitation, etc. on Business During the Transition Period Pertaining to Japan Post Bank and Japan Post Insurance Company" for public consultation
<Summary>
The FSA proposed the draft "Order to Amend the Order for Enforcement of the Postal Service Privatization Act" and the draft "Order to Amend the Order on Limitation, etc. on Business During the Transition Period Pertaining to Japan Post Bank and Japan Post Insurance Company" (hereinafter collectively referred to as the "proposal") for public consultation.
The proposal is mainly aimed at providing consequential amendments to the said Orders following the enforcement of the "Act on Registration of Deposit or Savings Accounts for Swift and Secure Payment of Public Benefits" and the "Act on Management of Deposit and Saving Accounts by Use of Individual Numbers Based on the Intention of Depositors."

Public comments will be accepted until 12:00 p.m. (noon) [JST], December 27, 2023. 

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231127-3/20231127.htmlopen new window

Press Releases

International 

November 30, 2023 Commissioner Kurita’s Meeting with GFANZ Co-Chair Mr. Mark Carney
November 27, 2023 The second Meeting of the Japan-UK Financial Regulatory Forum
November 24, 2023 Selection of New Vice-Chair of the International Financial Consumer Protection Organization (FinCoNet)

Banks

November 30, 2023 Overview of modifications to lending conditions by financial institutions
<Summary>
The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020 to October 31, 2023.
* The majority of the data reflects the data until October 31, 2023, whereas the data of cooperative financial institutions reflects the data until September 30, 2023.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.htmlopen new window
November 28, 2023 Publication of a trial version of "Business Support Methods for Respective Industries" (provisional English title) for the use in manufacturing, service, and medical sectors
<Summary>
The FSA has been implementing a project (commissioned to MEDIARAG Corporation) to enhance and instill in the financial sector the use of key takeaways of "Business Support Methods for Respective Industries" (published in March 2023), aimed at encouraging on-site personnel of regional financial institutions to enhance their ability to provide efficient financing and consulting services for corporate clients (corporate borrowers) by business sector type. 
In this context, on November 28, 2023, MEDIARAG Corporation published on its web portalopen new window a trial version of "Business Support Methods for Respective Industries" compiled for use in manufacturing, service, and medical sectors to invite comments* on it.

*This invitation of comments is being conducted by MEDIARAG Corporation as part of a project commissioned by the FSA and is not subject to public consultation conducted by the FSA under the "Administrative Procedures Act."

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231128/20231128.htmlopen new window
November 27, 2023 Requests for the promotion of providing business support for business operators and the facilitation of financing for corporate borrowers
<Summary>
The FSA held a meeting between government officials and representatives from financial associations and institutions (hereinafter collectively referred to as [FIs]), attended by Mr. Suzuki, Minister of State for Financial Services, Mr. Ibayashi, State Minister, and Mr. Kanda, Parliamentary Secretary of the Cabinet Office to exchange views on encouraging FIs to extend tailored business support to corporate borrowers in terms of management improvement and business revitalization and on the facilitation of financing for corporate borrowers during the fiscal-year-end season and further beyond.
While socioeconomic activities are beginning to normalize from the phase of the COVID-19 crisis, many businesses are still facing difficult cash flow conditions with tight borrowing constraints due to global price hikes, labor shortages, and other factors, especially given the increasing demand for operating funds and other resources toward the fiscal-year-end season. 
In response to such circumstances, and particularly given that failures of corporate borrowers can be caused due to an inability to repay the virtually interest-free unsecured loans extended by the public and/or private FIs (as governmental countermeasures) amid the COVID-19 crisis, the FSA, Government of Japan, mainly requested FIs to shift from the phase focused on financial support amid the COVID-19 crisis to a new phase that extends tailored business support in terms of management improvement and business revitalization according to the actual state of corporate borrowers.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231127.htmlopen new window

Insurance

November 30, 2023 Publication of "Answers to Frequently Asked Questions Regarding Insurance Business Regulatory Applicability" (provisional English title)
<Summary>
To engage in insurance business, a (life or non-life) insurance license or registration as a small amount and short term insurance insurer is required.
The FSA compiled and published  PDF"Answers to Frequently Asked Questions Regarding Insurance Business Regulatory Applicability"open new window (provisional English title) [available only in Japanese], which provide basic perspectives and interpretations on insurance business regulatory applicability (including eligibility requirements to engage in insurance business).

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/hoken/20231130/20231130.htmlopen new window
November 24, 2023 Approval of a business adaptation plan (in terms of reduction of environmental burden associated with energy usage) for Meiji Yasuda Life Insurance Company
<Summary>
The FSA approved the business adaptation plan (in terms of reduction of environmental burden associated with energy usage) for Meiji Yasuda Life Insurance Company, pursuant to the "Industrial Competitiveness Enhancement Act." 
The implementation period of the adaptation plan for the said insurance company will be from November 2023 to March 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/hoken/20231124/20231124.htmlopen new window
November 24, 2023 Administrative action against BIGMOTOR Co., Ltd., BM Holdings, Inc., and BM HANATEN CO., LTD.
<Summary>
The Kanto Local Finance Bureau took administrative action collectively against BIGMOTOR Co., Ltd., BM Holdings, Inc., and BM HANATEN CO., LTD., ordering the revocation of the registration of the entities as non-life insurance representatives effective November 30, 2023, pursuant to the "Insurance Business Act."
The administrative action was taken based on the facts found to have been in violation of the said Act through an onsite inspection of the said entities conducted by the FSA, mainly in terms of the entities' business management structure (business conduct and governance) and the business operational structure to ensure appropriate insurance solicitation.
Details of the administrative action are available (only in Japanese) on the Bureau's webpage.open new window 

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/hoken/20231124.htmlopen new window

Others

November 30, 2023 Activities of the FSA's Counseling Office for Financial Services Users for the period between July 1 and September 30, 2023
<Summary>
The FSA's Counseling Office for Financial Services Users offers a counseling service to respond to inquiries and comments from financial services users. Between July 1 and September 30, 2023, the counseling office received 13,271 inquiries and comments, an increase from 11,574 cases in the previous quarter (between April 1 and June 30, 2023).

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/soudan/2023soudan07-09/2023_07-09.htmlopen new window
November 30, 2023 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"

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