What’s New on the FSA Website

Week of December 21 – December 28, 2015

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

Press Conferences

December 28, 2015:	Press Conference by the Minister for Financial Services (December 25, 2015) Japanese version
December 25, 2015:	Press Conference by the Minister for Financial Services (December 24, 2015) Japanese version
December 24, 2015:	Press Conference by the Minister for Financial Services (December 22, 2015) (Available in Japanese)
December 21, 2015:	Press Conference by the Minister for Financial Services (December 18, 2015) (Available in Japanese)

Public Comments

(The following public comment is available in Japanese)

December 25, 2015:

Publication of the finalized regulatory notice designating the transactions and lending/borrowing including CDS transactions cleared by foreign clearing organizations that refer to foreign countries or corporations to be excluded from the transactions subject to the regulations on “Financial Instruments Obligation Assumption Business” «Summary» The FSA finalized an amendment to the regulatory notice designating the transactions and lending/borrowing including CDS transactions cleared by foreign clearing organizations that refer to foreign countries or corporations to be excluded from the transactions subject to the regulations on “Financial Instruments Obligation Assumption Business” based on the “Order for Enforcement of the Financial Instrument and Exchange Act.” The amendment aims to extend the applicable period (date of expiration) of the current regulatory notice from December 31, 2015 to June 30, 2016.

Press Releases

(The following press releases are available in English)

International

December 28, 2015:	International Organization of Securities Commissions (IOSCO) published two final reports “Mechanisms for Trading Venues to Effectively Manage Electronic Trading Risks and Plans for Business Continuity” and “Market Intermediary Business Continuity and Recovery Planning”
December 28, 2015:	International Organization of Securities Commissions (IOSCO) published the final report “Sound Practices at Large Intermediaries Relating to the Assessment of Creditworthiness and the Use of External Credit Ratings”
December 28, 2015:	International Organization of Securities Commissions (IOSCO) published “Crowdfunding 2015 Survey Responses Report” and “Statement on Addressing Regulation of Crowdfunding”
December 21, 2015:	Basel Committee on Banking Supervision published a document “Guidance on credit risk and accounting for expected credit losses”
December 21, 2015:	Basel Committee on Banking Supervision published a consultative document “Identification and measurement of step-in risk”
December 21, 2015:	BIS Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) published a consultative report “Harmonisation of the Unique Product Identifier”

Banks

December 28, 2015:	Update on measures taken in response to the Great East Japan Earthquake (as of December 28, 2015)

Securities

December 25, 2015:	FSA calls for attention to the reports of possession of large volume, etc.

Others

December 24, 2015:	Updated statistics of money lending business
December 22, 2015:	Disciplinary action against an Audit firm and Certified Public Accountants
December 22, 2015:	Commencement of a Hearing Procedure regarding Administrative Monetary Penalty Payment Order against Ernst & Young ShinNihon LLC
December 22, 2015:	Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”

(The following press releases are available in Japanese)

Councils

December 24, 2015:	Publication of the agenda and handouts of the second meeting of the Working Group on Corporate Disclosure of the Financial System Council «Summary» The FSA published the agenda and handouts of the second meeting of the Working Group on Corporate Disclosure of the Financial System Council, which was held on December 24, 2015.
December 22, 2015:	Publication of the report of the Working Group on Payments and Transaction Banking of the Financial System Council «Summary» The FSA published a report of the Working Group on Payments and Transaction Banking of the Financial System Council, which has been held since July 2015. The report will be hereafter presented at the general meeting of Financial System Council and at the meeting of the Sectional Committee on Financial System. (The report is to be publicized in English on the FSA website).
December 22, 2015:	Publication of the report of the Working Group on the Financial Group of the Financial System Council «Summary» The FSA published a report of the Working Group on the Financial Group of the Financial System Council, which has been held since May 2015. The report will be hereafter presented at the general meeting of Financial System Council and at the meeting of the Sectional Committee on Financial System. (The report is to be publicized in English on the FSA website).

Banks

December 28, 2015:	Figures regarding suspended repayments following the Great East Japan Earthquake (as of September 30, 2015) «Summary» The FSA published the number of debtors and the amount of debts for which contractual repayment has been suspended following the Great East Japan Earthquake, based on hearings with financial institutions in the three prefectures most heavily affected by the earthquake (Iwate, Miyagi, and Fukushima).
December 25, 2015:	Publication of the Guidelines and FAQs for Consolidation of Debt Caused by Natural Disasters by a workshop that has its secretariat in the Japanese Bankers Association «Summary» “Workshop to Discuss the Guidelines for Consolidation of Personal Debt Caused by Natural Disasters” published its guidelines and FAQs. The workshop has its secretariat in the Japanese Bankers Association.
December 25, 2015:	Publication of a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners” (with a reference casebook regarding the guidelines) «Summary» The FSA published a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners,” based on the data collected from April 2015 through the end of September 2015. The FSA also published an updated reference casebook to promote favorable practices by financial institutions utilizing the guidelines.
December 25, 2015:	Publication of a progress report on Business Revitalization Plans «Summary» The FSA published a report on the progress of business revitalization by Shinsei Bank Ltd. as of September 2015, pursuant to the “Act on Emergency Measures for Early Strengthening of Financial Functions” and the “Deposit Insurance Act.”

Securities

December 25, 2015:	Publication of a progress report of initiatives taken by market participants to reduce securities settlement risks «Summary» The Japan Securities Dealers Association, the Trust Companies Associations of Japan, and the Japan Securities Clearing Corporation published an updated progress report of initiatives taken to reduce securities settlement risks.
December 25, 2015:	Administrative action against VIN-NET, Inc. (Kanto Local Finance Bureau) «Summary» On December 25, 2015, the Kanto Local Finance Bureau took administrative action against VIN-NET, Inc., ordering the revocation of the company’s registration and the improvement of its business operations pursuant to the “Financial Instruments and Exchange Act.” There were serious issues concerning VIN-NET, Inc.’s business operations that may impair the public benefit or harm investors.
December 25, 2015:	Administrative penalty charge against TOSHIBA CORPORATION for making false statements in securities reports «Summary» On December 24, 2015, the FSA issued an order to impose an administrative penalty charge of more than 7.3 billion yen against TOSHIBA CORPORATION for making false statements in its securities reports. The corporation understated provisions for contract losses and overstated its sales in some of the projects using the percentage-of-completion method. The corporation also understated costs of sales and expenses in part of the business such as the Visual Products Business, the PC Business, and the Semiconductor Business.
December 25, 2015:	Administrative penalty charge against an individual for committing insider trading regarding stocks of R-Tech Ueno, Ltd «Summary» On December 24, 2015, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding the stocks of R-Tech Ueno, Ltd. The individual committed insider trading using information obtained as an employee of a company that concluded a contract with R-Tech Ueno, Ltd.
December 25, 2015:	Updated list of entities that are operating financial instruments businesses without proper registration (Kanto Local Finance Bureau) «Summary» The FSA (Kanto Local Finance Bureau) issued warnings to entities that are operating financial instruments businesses without proper registration. Warnings were issued to the following entities: Sun Ford Biz BM GROUP ASIA, INC Fox International Partners Ltd
December 24, 2015:	Updated lists of qualified institutional investors that are operating financial instruments businesses inappropriately (Kanto Local Finance Bureau and Okinawa General Bureau of the Cabinet Office) «Summary» The FSA and the Kanto Local Finance Bureau issued a warning to SRI Brain Co., Ltd. for operating a financial instruments business without proper registration, and the Okinawa General Bureau of the Cabinet Office issued a warning to GENERAL RESOURCES RECYCLE Gōdō Kaisha* for providing false information to its customers. *This corporate name is written in Romanized Japanese.
December 22, 2015:	Revision of the FSA regulatory notice concerning the designation of related corporations of credit rating agencies (group designation concerning explanatory items of unregistered ratings) «Summary» The FSA updated the list of designated credit rating agencies. These designated credit rating agencies are unregistered agencies that belong to the same group as registered credit rating agencies and fulfill certain requirements. The duty of explanation for securities companies is mitigated when the credit ratings of agencies on the list are utilized, compared to when those of non-designated unregistered agencies that are excluded from the list are used. The revision is valid for two years from January 1, 2016.

Others

December 28, 2015:	Publication of the amendments to the “Ordinance for Enforcement of the Money Lending Business Act” and the “Ordinance for Enforcement of the Act on the Use of Information and Telecommunication Technologies in Administrative Procedures Related to Financial Legislation under the Jurisdiction of the Cabinet Office” following the introduction of “My Number” system «Summary» On December 28, 2015, following the introduction of “My Number” system, the FSA published the amendments to the “Ordinance for Enforcement of the Money Lending Business Act” and the “Ordinance for Enforcement of the Act on the Use of Information and Telecommunication Technologies in Administrative Procedures Related to Financial Legislation under the Jurisdiction of the Cabinet Office” pursuant to partial enforcement of the “Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure” and the “Act on Preparation of Relevant Acts Accompanying Enforcement of Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure.” The amendments have been enforced since January 1, 2016.
December 28, 2015:	Publication of the draft EDINET Taxonomy – 2016 «Summary» The FSA proposed draft amendments to the EDINET Taxonomy - 2016. The proposed amendments reflect the amendments of the “Ordinance on Terminology, Forms and Preparation Methods of Financial Statements” and relevant accounting standards.
December 24, 2015:	Publication of a revision to the FSA Business Continuity Plan «Summary» Based on the Japanese Government’s business continuity plan (BCP) in the case of an intense earthquake directly hitting the Tokyo metropolitan area, the FSA published a revision to the “FSA’s BCP for severe earthquakes.” The revision aims to improve the plan in order to make it more practical.
December 24, 2015:	Publication of the budget, organization and staff for FY 2016 «Summary» The FSA published an overview of the budget, organization and staff for FY2016 following the Cabinet decision on the government draft budget.
December 24, 2015:	Major items related to the financial industries in the FY2016 tax reform «Summary» The FSA published the major items related to the financial industries in the FY2016 tax reform which was decided by the Cabinet on December 24, 2015. They include the further improvement of NISA’s convenience, and the expansion of special tax measures for infrastructure funds.
December 22, 2015:	Publication of the agenda and handouts of the fourth meeting of the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code «Summary» The FSA published the agenda and handouts of the fourth meeting of the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code, which was held on December 22, 2015.
December 21, 2015:	Development of the FSA’s facilitation scheme for online administrative procedure «Summary» The FSA published the development of its facilitation scheme for online administrative procedure as of March 31, 2015, pursuant to Article 10 of the “Act on Utilization of Information and Communication Technology in Administrative Procedure.”