November 20, 2015
Financial Services Agency
Important Notice Regarding Regulatory Revisions
Laws related to Specially Permitted Business Operators and Specially Permitted Investment Management Business Operators for Qualified Institutional Investors, etc. have been revised, making it necessary for these providers to make additional submissions.
1. Key changes
○On May 27, 2015, a law to revise some of the provisions of the Financial Instruments and Exchange Act ("FIEA") related to operators ("specially permitted operators") of Specially Permitted Businesses for Qualified Institutional Investors, etc. ("specially permitted businesses") ("Revised FIEA of 2015") was passed. The law was promulgated on June 3 of the same year. This will also apply to operators of businesses stipulated in Article 48(1) of the Supplementary Provisions of the Act to Partially Amend the Securities and Exchange Act (Act No. 65 of 2006) ("specially permitted investment management business operators").
○The Revised FIEA of 2015 is stipulated to take effect within one year from the date it was promulgated (i.e. June 3, 2015).
○In addition, drafts of the relevant Cabinet Orders, Cabinet Office Ordinances and supervisory guidelines based on the law on revision*1 were made public on Friday, November 20, 2015 to invite the general public to submit opinions (public comment) on them (submissions accepted until Monday, December 21, 2015).*2
*1The content of the drafts of the Cabinet Orders, Cabinet Office Ordinances and supervisory guidelines reflect the Financial System Council Report dated January 28, 2015 by the Working Group on Investment Management, etc. entitled, "For an Appropriate Regulatory Framework for Funds Targeting Professionals to Ensure Investor Protection and Smooth Flows of Growth-Supporting Money" ("Working Group Report").
See the Working Group Report here (Japanese only):
*2On the Financial Services Agency ("FSA") website (Japanese only):
Key features of the Revised FIEA of 2015:
2. Additional submissions by existing operators (e.g. submissions required under transitional measures)
○After the drafts of the Cabinet Orders, Cabinet Office Ordinances and supervisory guidelines are reworked based on the public comments collected, specific requirements (including submissions required under transitional measures) that need to be addressed by operators who have regularly submitted documents in accordance with Article 63(2) of the FIEA (including cases in which this provision is applied mutatis mutandis pursuant to Article 63-3(1) of the same act) and Article 48 of the Supplementary Provisions of the Act to Partially Amend the Securities and Exchange Act (both operators under Article 63 and 48 of the aforementioned Acts or "Existing Operators") will be finally spelled out. The Revised FIEA of 2015 will take effect after these specifics have been decided.
○Please note that, after the revised act takes effect, Existing Operators will be required to submit additional reports and attachments that have been newly included in the Revised FIEA of 2015, Cabinet Orders and Cabinet Office Ordinances within six months of the date that the act takes effect.
○Information on the dates on which the revised law etc. take effect and guidance on the documents required to be submitted due to transitional measures, etc. will be posted on the FSA website in late January 2016. Please make sure you address the requirements under the upcoming changes without fail since we will continue to promote additional information through the FSA website. We thus recommend checking out the FSA website periodically - be especially alert for updates that are likely in the early part of each month.
Inquiries on the requirements for registration and submissions, procedures, etc. from all overseas operators should be directed to Kanto Local Finance Bureau.
For all non-resident operators
3rd Securities Business Surveillance Section,
Opinions on the drafts of the Cabinet Orders, Cabinet Office Ordinances and supervisory guidelines posted in the Public Comment section should be sent to the FSA.*2(Japanese only)
Overview of the Act for Partial Revision of the Financial Instruments and Exchange Act of 2015 (1)
Overview of the Act for Partial Revision of the Financial Instruments and Exchange Act of 2015 (2)
Overview of the Act for Partial Revision of the Financial Instruments and Exchange Act of 2015 (3)
Overview of the Act for Partial Revision of the Financial Instruments and Exchange Act of 2015 (4)
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