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[Photo Gallery]

Minister for Financial Services Shozaburo Jimi toured the three European countries of Germany, France and the United Kingdom over six days from October 3 (Monday) to 8 (Saturday).

In Germany, Minister Jimi met with Gabriel Bernardino, Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), and Sabine Lautenschlaeger, Vice President of the Deutsche Bundesbank.

In France, Minister Jimi met with Jérôme Haas, President of the French national standard setter Autorité des Normes Comptables (ANC) (upper photo).

In the United Kingdom, Minister Jimi met with United Kingdom Financial Services Authority (UKFSA) Chairman Adair Turner, Bank of England Governor Mervyn King, Financial Secretary to the Treasury Mark Hoban (lower photo), etc.

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Minister for Financial Services Shozaburo Jimi visited Iwate Prefecture on October 18 and 19 (Tuesday and Wednesday) to find facts about the region hit by the Great East Japan Earthquake and exchange opinions with financial institutions (see photos below).

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It has been a half a year since the Great East Japan Earthquake.

We would like once again to offer our sincere condolences to the families and friends of the people who lost their lives in the Great East Japan Earthquake, and express our heartfelt sympathy to the people who suffered damage from the disaster.

The FSA continues to provide “Great East Japan Earthquake - Related Information” via these contact points:

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[Topics]

The deadline was extended from the end of October 2011 to the end of March 2012 for the purpose of enabling people affected by the Great East Japan Earthquake to take special procedures to borrow money from money lenders without exceeding their loan repayment capacity.

* For details, please go to the FSA's website and access “Cabinet Office Ordinance for Partial Revision of the Ordinance for Enforcement of the Money Lending Business Act” (October 28) at the Press Releases section. (Available in Japanese only)

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The FSA publishes quarterly information on the number of consultations for people who visited the Counseling Office for Financial Services Users (hereafter “Counseling Office”) and the main points regarding consultation topics, etc. The consultation reception situation, characteristics, etc. from July 1 to September 30, 2011, were as follows.

• 1. From July 1 to September 30, 2011, there were 10,121 cases of consultations, etc. (refer to Status of counseling, etc. provided by the “Counseling Office for Financial Services Users” (October 31, 2011)). On average, 161 cases were handled daily, down from the results (174 cases) for the April 1 to June 30, 2011, period (hereafter the “previous period”).

• 2. The total included 2,999 cases (30% of the total) regarding deposits and financing, etc., 2,270 cases (22%) regarding insurance products, etc., 3,539 cases (35%) regarding investment products, etc., 958 cases (9%) regarding loans, etc., and 355 cases (4%) regarding opinions, requests, etc. concerning general financial administration and other matters.

• 3. Characteristics by Area

  • (1) Cases regarding deposits and financing, etc. decreased slightly from the previous period due to a drop in consultations, etc. on results of individual transactions/contracts.

  • (2) Cases regarding insurance products, etc. decreased slightly from the previous period due to a decline in consultations, etc. on general inquiries and questions.

  • (3) Cases regarding investment products, etc. increased slightly from the previous period due to growth in consultations, etc. on results of individual transactions/contracts regarding investment trusts and foreign exchange margin transactions.

  • (4) Cases regarding loans, etc. decreased slightly from the previous period due to a drop in consultations, etc. on general inquiries and questions, including those about the interpretation of laws, regulations and guidelines.

• 4. From the perspectives of protection and enhanced convenience of users overall, the FSA utilizes users' consultations, etc. as valuable information for verification and supervision

  Of the information accepted in the period in question, the following has been utilized as valuable information for financial administration, including interviews during inspections of financial institutions:

  • (1) Approaches for explanations to customers by depositary financial institutions selling risky products, etc.

  • (2) Improper displays, including advertising, by depositary financial institutions

  • (3) Improper customer handling by depositary financial institutions

  • (4) Handling of collateral in lending by depositary financial institutions

  • (5) Handling of personal information by depositary financial institutions

  • (6) So-called credit crunch, credit withdrawal and loan condition changes

  • (7) Non-payment, etc. by insurance companies (neglecting to pay incidental insurance payouts, non-payment of insurance payouts concerning third sector products, etc.)

  • (8) Improper conduct by insurance solicitors, etc. (including insufficient explanation of important matters, improper guidance and handling for procedures, undisclosed inducement, unauthorized contracting, name borrowing, and paying insurance premiums for other parties)

  • (9) Money lending business operators' conduct that could run counter to law (including violations of collection conduct regulation)

  • (10) Improper explanation to customers by money lending business operators

  • (11) Information system failure

  • (12) Improper conduct by foreign exchange margin trading brokers

  • (13) Internet transactions with foreign exchange margin trading brokers

  • (14) Selling without registration

  • (15) Financial instruments business operators' improper conduct (including shutting down of websites, refusal to answer phone calls, unauthorized trading and solicitation of the elderly)

  • (16) Approaches in explanations to customers by financial instruments business operators when selling risky instruments, etc.

  • (17) Conduct that uses so-called collective investment schemes and could run counter to law

  The following activities are those that use information from the previous period:

  • (1) The FSA referred to information provided to the Counseling Office in conducting interviews, etc. with 198 financial institutions for supervision.

  • (2) The FSA referred to information provided to the Counseling Office in inspections launched on 20 financial institutions. Also, information on improper use of 20 deposit accounts was provided to financial institutions and police authorities.

• 5. Sample consultations, etc. with users and advice, etc. from the Counseling Office

  Refer to “Sample Consultations, etc. with Users and Advice, etc. from the Counseling Office” published to indicate examples of consultations, etc. that should be made known to users.

  • (1) Sample consultations with users and advice, etc. regarding deposits, loans, etc.

    • “Consultations, etc. regarding confirmation of licenses and the deposit insurance system”

    • “Consultations, etc. regarding identification”

    • “Consultations, etc. regarding stolen/counterfeit ATM cards”

    • “Consultations, etc. regarding the furikome money transfer fraud relief system”

    • “Consultations, etc. regarding callable time deposits”

    • “Consultations, etc. regarding loans”

  • (2) Sample consultations with users and advice, etc. regarding insurance products, etc.

    • “Consultations, etc. regarding explanations to customers on details of insurance”

    • “Consultations, etc. regarding obligation for notification”

    • “Consultations, etc. regarding insurance contracts”

    • “Consultations, etc. regarding insurance benefit payments”

    • “Consultations, etc. regarding small-claims and short-term insurance businesses”

    • “Consultations, etc. regarding protection of insurance policy holders”

  • (3) Sample consultations with users and advice, etc. regarding investment instruments, etc.

    • “Consultations, etc. regarding purchases of financial instruments”

    • “Consultations, etc. regarding purchases of investment trusts”

    • “Consultations, etc. regarding foreign exchange margin trading”

    • “Consultations, etc. regarding trading in unlisted shares”

    • “Consultations, etc. regarding unlisted shares issued by Counseling Office users”

    • “Consultations, etc. regarding funds”

    • “Consultations, etc. regarding transactions with financial instruments businesses (securities companies under the defunct Securities and Exchange Act)”

    • “Consultations, etc. regarding registration of financial instruments businesses”

    • “Consultations, etc. regarding computerization of stock certificates”

    • “Consultations, etc. regarding investor protection systems”

    • “Consultations, etc. regarding corporate bonds”

  • (4) Sample consultations with users and advice, etc. regarding money lending, etc.

    • “Consultations, etc. regarding borrowings from illegal money lenders”

    • “Consultations, etc. regarding forcible money collection”

    • “Consultations, etc. regarding disclosure of transaction records”

    • “Consultations, etc. regarding changes in repayment terms and conditions”

    • “Consultations, etc. regarding interest rate reductions”

    • “Consultations, etc. regarding quantitative restrictions”

    • “Consultations, etc. regarding money lenders registered with prefectural governments”

    • “Consultations, etc. regarding issuance of documents after completion of repayments”

Also, the FSA posts information about warnings to financial services users on its website (section titled For the General Public).

* For details, please go to the FSA website and access Status of counseling, etc. provided by the “Counseling Office for Financial Services Users” (period: July 1 to September 30, 2011) (October 31) from the Press Releases section. (Available in Japanese only)

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