What’s New on the FSA Website

Week of December 12 – December 16, 2016

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

Press Conferences

December 14, 2016:	Press Conference by the Minister for Financial Services (December 9, 2016) Japanese version
December 12, 2016:	Press Conference by the Minister for Financial Services (December 6, 2016) (Available in Japanese)
December 12, 2016:	Press Conference by the Minister for Financial Services (December 2, 2016) Japanese version

Public Comments

(The following public comments are available in Japanese)

December 15, 2016:

Publication of the draft “Principles for Effective Management of Audit Firms” (the Audit Firm Governance Code) «Summary» The FSA proposed the draft “Principles for Effective Management of Audit Firms” (the Audit Firm Governance Code) which were developed by the “Council of Experts on Audit Firm Governance Code” at its fifth meeting on December 5, 2016. The FSA invites public comments from December 15, 2016 through January 31, 2017.

December 14, 2016:

Publication of the finalized amendment to the regulatory notice designating transactions and lending/borrowing to be excluded from the transactions subject to the regulations on “Financial Instruments Obligation Assumption Business” «Summary» The FSA finalized the amendment to the regulatory notice designating transactions and lending/borrowing 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 extends the applicable period (date of expiration) of the current regulatory notice from December 31, 2016 to June 30, 2017. The regulatory notice was enforced on December 14, 2016.

Press Releases

(The following press releases are available in English)

International

December 13, 2016:	Basel Committee on Banking Supervision published reports “Regulatory Consistency Assessment Programme (RCAP) Assessment of Basel III LCR regulations” and “Regulatory Consistency Assessment Programme (RCAP) Follow-up Assessment of Basel III risk-based capital regulations” for Japan

Others

December 16, 2016:	Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”
December 13, 2016:	Publication of “Effective Stewardship Activities of Institutional Investors - To Enhance Constructive Dialogue toward Sustainable Corporate Growth -”

(The following press releases are available in Japanese)

Banks

December 16, 2016:

Publication of statistics regarding unlawful reimbursement of deposits «Summary» The FSA published statistics on unlawful reimbursement of deposits caused by counterfeit and stolen cash cards, stolen deposit books, and unlawful internet banking activities. The statistics include details of incidents and compensation made by financial institutions based on reports from the financial institutions.

December 13, 2016:

Report on measures for the resolution of failed financial institutions «Summary» On December 13, 2016, the FSA submitted to the National Diet a report on measures for the resolution of failed financial institutions (the FRC report) pursuant to the “Act on Emergency Measures for the Revitalization of the Financial Functions.” The report covers developments between April 1, 2016, and September 30, 2016.

Securities

December 16, 2016:	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 in its regulatory notice concerning the designation of related corporations of credit rating agencies (group designation concerning explanatory items of unregistered ratings). These designated credit rating agencies are unregistered but belong to the same group as registered credit rating agencies and fulfill certain requirements. The duty of explanation to clients required of securities companies is mitigated when the credit ratings of agencies on this list are used, compared to when the agencies are not included on it.
December 16, 2016:	Administrative penalty charge against Morgan Stanley MUFG Securities Co., Ltd. for market manipulation regarding stocks of SEIBU HOLDINGS INC. «Summary» On December 15, 2016, the FSA issued an order to impose an administrative penalty charge against Morgan Stanley MUFG Securities Co., Ltd. for market manipulation regarding stocks of SEIBU HOLDINGS INC.
December 16, 2016:	Administrative penalty charge against an individual for market manipulation regarding stocks of Bank of The Ryukyus, Limited. «Summary» On December 15, 2016, the FSA issued an order to impose an administrative penalty charge against an individual for market manipulation regarding stocks of Bank of The Ryukyus, Limited.
December 13, 2016:	Administrative action against AM Online Co., Ltd. (Kanto Local Finance Bureau) «Summary» The Kanto Local Finance Bureau took administrative actions against AM Online Co., Ltd. (for making false statements to their customers in the course of the conclusion of financial instrument transaction contracts and their solicitation), ordering the suspension of their businesses (: solicitation and conclusion of new investment advisory contracts) from December 13, 2016 to January 12, 2017, and the improvement of their business operations, pursuant to the “Financial Instruments and Exchange Act.” These administrative actions are based on recommendations from the Securities and Exchange Surveillance Commission (SESC) as the results of their on-site inspection.
December 13, 2016:	Administrative penalty charge against an employee of individual for committing insider trading regarding stocks of TAKACHIHO KOHEKI CO., LTD. «Summary» On December 12, 2016, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of TAKACHIHO KOHEKI CO., LTD. by using information obtained as an employee of the aforementioned entity.
December 13, 2016:	Administrative penalty charge against an individual for committing insider trading regarding stocks of GameOn Co., Ltd. «Summary» On December 12, 2016, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of GameOn Co., Ltd. by using information obtained as a then-employee of a tender offeror (: Neowiz Games Corporation) of GameOn Co., Ltd.
December 12, 2016:	The third trial of an administrative penalty case against an individual for committing insider trading regarding stocks of KEIOZU HOLDINGS COMPANY «Summary» On December 16, 2016, the third trial of an administrative penalty case against an individual for committing insider trading regarding stocks of KEIOZU HOLDINGS COMPANY by using information received from a contractor of a tender offeror of KEIOZU HOLDINGS COMPANY was conducted.

Others

December 16, 2016:	Establishment of the “Roundtable on Risks Associated with the Settlement of Foreign Exchange Transactions” «Summary» In mid-February 2013, the Basel Committee on Banking Supervision published the “Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions” that requires the financial institutions to mitigate foreign exchange (FX) settlement risks “as much as practicable by setting FX transactions through the use of financial market infrastructures that provide payment-versus-payment (PvP) arrangements.” In response to it, the FSA sets a target in its “2016-2017 Strategic Directions and Priorities” to promote PvP settlement for mitigating FX settlement risks. In order to promote mitigation of FX settlement risks, it is critical for a wide range of stakeholders to deepen awareness of the issues, discuss the possible solutions to the issues, and share the common goals. For providing a ground for this, the FSA established the “Roundtable on Risks Associated with the Settlement of Foreign Exchange Transactions.”
December 15, 2016:	Publication of the agenda and handouts of the first meeting of the “Working Group on Underwriting in Initial Public Offering” «Summary» The FSA published the agenda and handouts of the first meeting of the “Working Group on Underwriting in Initial Public Offering,” which was held on December 15, 2016.
December 12, 2016:	Publication of the agenda and handouts of the fifth meeting of the “Advisory Group on Supervisory Approaches” «Summary» The FSA published the agenda and handouts of the fifth meeting of “Advisory Group on Supervisory Approaches” held on December 12, 2016.