What’s New on the FSA Website

Week of April 2 - April 6, 2018

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

Press Releases

(The following press releases are available in English)

International 

April ４, 2018	Exchange of Letters for Cooperation Framework on FinTech with the Swiss Financial Market Supervisory Authority(FINMA)
April 2, 2018	The Basel Committee on Banking Supervision published 'Frameworks for early supervisory intervention'

Councils

April ４, 2018	The fourth meeting of the Working Group on Corporate Disclosure of the Financial System Council

Others

April 6, 2018	Stewardship Code : 227 institutional investors have signed up to the Principles for Responsible Institutional Investors as of April 5, 2018
April ３, 2018	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

April 6, 2018	Publication of the agenda and handouts of the fourth meeting of the “Working Group on Corporate Disclosure” of the Financial System Council  < Summary> The FSA published the agenda and handouts of the fourth meeting of the “Working Group on Corporate Disclosure” of the Financial System Council, which was held on April 9, 2018.

Securities

April 6, 2018	Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau)  < Summary> The FSA and the Kanto Local Finance Bureau issued warnings to entities that are operating financial instruments businesses without proper registration. (See the updated list of  Japan-based entities).
April 2, 2018	Publication of the updated regulatory notice of the “Mutual Fund for Dollar-Cost Averaging NISA” to specify certain requirements  < Summary> The FSA published the updated regulatory notice of the “Mutual Fund for Dollar-Cost Averaging NISA (individual saving account for periodic investment)” to specify certain requirements. The notice was enforced on April 1, 2018.
March 30, 2018	Further measures based on the “Initiatives to Create an Environment for the Same Contents Disclosure” (provisional English title)  < Summary> Following the joint publication of the “Initiatives to Create an Environment for the Same Contents Disclosure” (provisional English title) by the FSA and the Ministry of Justice on December 28, 2017, the Financial Accounting Standards Foundation (FASF) published a sample of disclosure in terms of the unification of the overlapping disclosure elements across business reports and annual securities reports on March 30, 2018. On the same day, the FSA endorsed that the FASF’s sample of disclosure would not pose any issue from the relevant regulatory perspectives. In this context, the FSA started consultation services to respond to inquiries from corporations.

Others

April 6, 2018	Publication of the updated FSA’s regulatory notice of the Japanese GAAP  < Summary> The FSA published the updated regulatory notice of the Japanese GAAP stipulated in the “Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements.” The notice was enforced on April 6, 2018.
April 6, 2018	Publication of a tutorial video titled “For Your Future –Life, Money, and Asset Building –” (provisional English title) to promote the sustainable growth of the national wealth  < Summary> The FSA published a tutorial video titled “For Your Future –Life, Money, and Asset Building –” (provisional English title) in collaboration with relevant associations to promote the sustainable growth of the national wealth. The tutorial video is mainly targeted at young workers in anticipation that it will be used in a widespread manner, such as in workplace seminars.
April 6, 2018	Administrative action against FSHO Kabushiki Kaisha* (The Kanto Local Finance Bureau)  < Summary> Subsequent to the previous administrative action taken against FSHO Kabushiki Kaisha* on March 8, 2018, the Kanto Local Finance Bureau took a further administrative action against the said entity, ordering the suspension of its business operations from April 8 to June 7, 2018 and the improvement of its business operations pursuant to the “Payment Services Act.” This administrative action is mainly based on the findings from the FSA’s off-site inspection, in which the entity was deemed to have failed to implement the first business improvement order. The entity was found to have failed to develop an effective business management structure to ensure the regulatory compliance and appropriate business operations, in which the entity failed to fulfill requirements of mandatory verification inclusive of customer identification at the time of transaction pursuant to the “Act on Prevention of Transfer of Criminal Proceeds,” mainly in terms of checking the purposes of transactions and occupations of its customers.   *This corporate name is not available in English and is the Romanized version of its Japanese name.
April 6, 2018	Administrative action against ETERNAL LINK Co.,Ltd. (The Kanto Local Finance Bureau)  < Summary> The Kanto Local Finance Bureau took an administrative action against ETERNAL LINK Co.,Ltd., ordering the suspension of its business from April 6 to June 5, 2018 and the improvement of its business operations pursuant to the “Payment Services Act.” This administrative action is based on the findings from the FSA’s on-site inspection, in which the entity was found to be in violation of the “Payment Services Act,” mainly in terms of user protection.
April 6, 2018	Administrative action against LastRoots Co., Ltd (The Kanto Local Finance Bureau)  < Summary> The Kanto Local Finance Bureau took an administrative action against LastRoots Co., Ltd, ordering the improvement of its business operations pursuant to the “Payment Services Act.” This administrative action is based on the findings from the FSA’s on-site inspection. The said entity’s business management structure was deemed insufficient in terms of the effectiveness to ensure regulatory compliance and appropriate business operations, in which the entity was found to have failed to conduct internal audits. The entity was also found to have failed to establish an effective management structure in terms of the prevention of money laundering and terrorism financing, the segregation management of users’ assets, and the system risk management.