Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, March 1, 2024, 8:40 am to 8:45 am)

[Opening remarks:]

Minister)

I would like to talk about the authorization of the establishment of the Japan Financial Literacy and Education Corporation (J-FLEC).
Yesterday, the Corporation was authorized its establishment in accordance with law.
In addition, on the same day, Mr. ANDO Satoshi and Mr. TAKEUCHI Kiyonobu were appointed as the person who was to become the chairperson of the Corporation’s Board of Directors and the person who was to become the Auditor of the Corporation, respectively, in accordance with the law.
Mr. Ando served as executive officer in charge of IR and director in charge of governance at OMRON Corporation, and in recent years, as emphasis was especially placed on the promotion of financial literacy and education in the workplace, he has actively promoted human capital management such as enriching employee education and creating the position of CHRO.
We hope that as the chairperson of the Board of Directors, Mr. Ando will contribute to the development of the Corporation by demonstrating strong leadership, including organizational governance, while making the most of the experience, knowledge, and human network he has cultivated up to now.
Mr. Takeuchi has played an active role as a certified public accountant for more than 30 years and possesses a profound knowledge of auditing and accounting.
We hope that Mr. Takeuchi will utilize his extensive knowledge and experience to contribute to ensuring the appropriate administration of the Corporation’s operations.
In order to further enhance financial and economic education and contribute to the improvement of financial literacy among people, the FSA will work with relevant stakeholders to prepare for the establishment of the Corporation in April of this year and the start of its full-scale operation in August.

[Questions and answers:]

Q.

Improvement plans were submitted by non-life insurance companies yesterday in relation to the price adjustment problem. They include the large-scale punishment of over 100 executives and the phased elimination of cross-shareholdings. What is the Minister's opinion and evaluation of such improvement plans?

A.

Yesterday, four major non-life insurance companies submitted business improvement plans regarding the adjustment of insurance premiums in corporate insurance.
Based on the content of the business improvement orders, the business improvement plans of each firm describe measures to create an appropriate competitive environment such as the sale of cross-shareholdings and the elimination of excessive cooperation in core businesses; the establishment of an appropriate system for legal compliance through the strengthening of the functions of and cooperation among departments in charge of sales, compliance, risk management, and internal audits; the appropriate training and monitoring of sales representatives and other internal persons concerned and agencies; and the reduction of salaries of executives and employees to clarify where managerial responsibility lies.
The FSA believes that in order to prevent the recurrence of similar incidents, it is essential that the business management system of each firm be drastically strengthened through the implementation of necessary improvement measures.
From this point of view, we will closely examine the submitted plans and follow up firmly to ensure that business improvement measures are steadily implemented through the strong leadership of the management and that improvements actually progress.