Financial Services AgencyFSA Weekly Review No.300

July 5, 2018

What’s New on the FSA Website

Week of June 25 - June 29, 2018

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

Press Conferences

June 27, 2018 Press Conference by the Minister for Financial Services (June 22, 2018) (Available in Japaneseopen new window)
June 27, 2018 Press Conference by the Minister for Financial Services (June 19, 2018) (Available in Japaneseopen new window)

Public Comments

(The following public comment is available in English)

June 29, 2018 Revision of "JFSA’s supervisory approaches -Replacing checklists with engagement-"


(The following public comments are available in Japanese)

June 29, 2018 Publication of the draft amendments to the regulatory notices and guidelines pertaining to liquidity ratio requirements (Pillar 1 and Pillar 3) for internationally active banks open new window
< Summary>
The FSA proposed the draft amendments to the regulatory notices and guidelines pertaining to liquidity ratio requirements (Pillar 1 and Pillar 3) for internationally active banks. The proposal mainly aims to implement  Pillar 1 and Pillar 3 requirements with respect to net stable funding ratio based on the documents published by the BCBS, namely, “Basel IIIļ¼šNet Stable Funding Ratio” and “Net Stable Funding Ratio disclosure standards,” which were published in October 2014 and June 2015, respectively.
June 28, 2018 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” open new window
< 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 June 30 to December 31, 2018. The notice was enforced on June 28, 2018.

Press Releases

(The following press releases are available in English)

International 

June 28, 2018 Basel Committee on Banking Supervision (BCBS) published a report 'Progress in adopting the Principles for effective risk data aggregation and risk reporting' open new window
June 25, 2018 PDF Financial Stability Board (FSB) published Principles on Bail-in Execution open new window
June 25, 2018 PDF Financial Stability Board (FSB)  published Funding Strategy Elements of an Implementable Resolution Plan open new window

Publication

June 29, 2018 Publication of the 179th issue of the FSA’s monthly journal, Access FSA


Others

June 28, 2018 Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”
June 28, 2018 Updated statistics of money lending business


(The following press releases are available in Japanese)

Councils

June 28, 2018 Publication of the Report by the “Working Group on Corporate Disclosure” of the Financial System Council open new window
< Summary>
The FSA published the report by the “Working Group on Corporate Disclosure” of the Financial System Council. The report was compiled by the Working Group based on its meetings which were held eight times from December 2017 to June 2018 to discuss corporate disclosure.


Banks

June 29, 2018 Publication of a progress report on Business Revitalization Plans open new window
< Summary>
The FSA published a report on the progress of business revitalization by Shinsei Bank Ltd. as of March 2018, pursuant to the “Act on Emergency Measures for Early Strengthening of Financial Functions” and the “Deposit Insurance Act.”
June 27, 2018 Publication of a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners” open new window
< Summary>
The FSA published a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners” as of FY 2017. The report is regularly published to further promote the utilization of the Guidelines.
June 27, 2018 Overview of modifications to lending conditions by financial institutions open new window
< Summary>
The FSA published an overview of modifications to lending conditions made by financial institutions for the period from April 2017 to March 31, 2018. From FY 2018 onwards, the overview will be released on an annual basis wherein the information will be based on those gathered in the period of the most recent year. The former overview had been released semi-annually wherein the information reflected the accumulated data from the date of enforcement of the “SME Financing Facilitation Act” (December 4, 2009) until the respective ends of reporting periods.
June 27, 2018 Publication of the survey results on the actual state of utilization of the “Guidelines for Personal Guarantee Provided by Business Owners” by financial institutions open new window
< Summary>
As part of the FSA’s initiatives to encourage financial institutions to provide loans based on proper evaluation of their customers’ business potentials without overly relying on collateral and personal guarantees, the FSA has been encouraging financial institutions to utilize the “Guidelines for Personal Guarantee Provided by Business Owners” so that the guidelines may be widely accepted as an established practice by financial institutions. In this regard, the FSA published the survey results on the actual state of utilization of the guidelines by financial institutions.
June 25, 2018 Approval granted to The Bank of Kyoto, Ltd. for its engagement in trust business open new window
< Summary>
The FSA granted approval to The Bank of Kyoto, Ltd. for its engagement in trust business pursuant to the “Act on Engagement in Trust Business by a Financial Institution.”

Insurance

June 29, 2018 Approval granted to Rakuten Insurance Holdings Co., Ltd.* for the establishment of an insurance holding company open new window
< Summary>
The FSA granted approval to Rakuten Insurance Holdings Co., Ltd.* for the establishment of the insurance holding company which has insurance companies as its subsidiaries, pursuant to the “Insurance Business Act.”
* The trade name has changed to “Rakuten General Insurance Co., Ltd.” effective as of July 2, 2018.

Securities

June 29, 2018 Progress report of initiatives taken by market participants to reduce securities settlement risks open new window
< Summary>
The FSA announced an updated progress report of the initiatives to reduce securities settlement risks which was published by the Japan Securities Dealers Association, the Trust Companies Associations of Japan, and the Japan Securities Clearing Corporation.
June 28, 2018 Revision of the FSA regulatory notice concerning the designation of related corporations of credit rating agencies (group-based designation concerning explanatory items of unregistered ratings) open new window
< Summary>
The FSA updated the list of designated credit rating agencies (unregistered credit rating agencies which belong to the same group of registered credit rating agencies and fulfill the requirements). The duty of securities companies to explain about the certain items for customers is reduced when securities companies use credit ratings provided by the agencies which are on the list.
June 26, 2018 Administrative actions against the three notifiers of specially permitted business for qualified institutional investors (SPBQII) who violated the previous orders to improve their business operations open new window
< Summary>
The Kanto Local Finance Bureau took administrative actions against the three notifiers of specially permitted business for qualified institutional investors (SPBQII) who violated the previous orders to improve their business operations, ordering the abolition of the notifiers’ entire SPBQII and the improvement of their business operations pursuant to the “Financial Instruments and Exchange Act.”
June 26, 2018 Administrative actions against the five notifiers of specially permitted business for qualified institutional investors (SPBQII) who failed to file the mandatory business reports to the authorities open new window
< Summary>
The Kanto Local Finance Bureau took administrative actions against the five notifiers of specially permitted business for qualified institutional investors (SPBQII) who failed to file the mandatory business reports to the Kanto Local Finance Bureau, ordering the improvement of their business operations pursuant to the “Financial Instruments and Exchange Act.”
June 25, 2018 A series of trials of administrative penalty cases against an officer and employees of Morpho, Inc. for committing insider trading regarding stocks of the entity open new window
< Summary>
On July 12, 2018, a series of trials of administrative penalty cases against an officer and employees of Morpho, Inc. for committing insider trading regarding stocks of the entity will be conducted.
June 25, 2018 Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau) open new window
< 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 PDF Japan-based entitiesopen new window ).


Others

June 29, 2018 Publication of the level of remuneration paid to officers of authorized corporations open new window
< Summary>
The FSA published the level of remuneration paid to the officers of the authorized corporations under its jurisdiction: Deposit Insurance Corporation of Japan, and Banks’ Shareholdings Purchase Corporation. Such information is subject to disclosure on an annual basis by respective competent government agencies and is required to be presented on the format designated by the Ministry of Internal Affairs and Communications.
June 29, 2018 Results of the survey on financial institutions’ accessibility services offered to their customers with disabilities open new window
< Summary>
The FSA published the results of the survey on financial institutions’ accessibility services offered to their customers with disabilities (as of March 31, 2018).
June 29, 2018 Publication of the common key performance indicators (KPIs) comparable across investment trust distributors open new window
< Summary>
The FSA published the common key performance indicators (KPIs) comparable across investment trust distributors that measure long-term return proportional to risk/cost to enhance the “visualization” of business approaches taken by financial service providers towards the establishment of the customer oriented business conduct.
June 27, 2018 Publication of the agenda and handouts of the 55th Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group open new window
< Summary>
The FSA published the agenda and handouts of the 55th Meeting of the Financial Service ADR Liaison Group, which was held on June 27, 2018.

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