What’s New on the FSA Website

Week of July 9 - July 13, 2018

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

Public Comments

(The following public comments are available in Japanese)

July 13, 2018

Publication of the finalized amendments to the “Comprehensive Guidelines for Supervision of Major Banks, etc.” and the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.”  < Summary> The FSA finalized the amendments to the “Comprehensive Guidelines for Supervision of Major Banks, etc.” and the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” The amendments set out actions in-scope financial institutions should take to improve their resolvability based on the progress in the discussion at the Financial Stability Board. The amendments also include technical amendments in the sections on compensation structure and monitoring of financial institutions that conduct offering of funds.

Press Releases

(The following press releases are available in English)

International 

July 11, 2018	Financial Stability Board (FSB) published a draft Cyber Lexicon for public consultation
July 11, 2018	FATF announced Public Consultation on the Draft Risk-Based Approach Guidance for the Securities Sector  and Public Consultation on the Draft Risk-Based Approach Guidance for the Life Insurance Sector
July 9, 2018	Basel Committee on Banking Supervision (BCBS) released 'Global systemically important banks: revised assessment methodology and the higher loss absorbency requirement'

Others

July 12, 2018	Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”
July 10, 2018	FSA's Organizational Reform

(The following press releases are available in Japanese)

Banks

July 13, 2018	Administrative action against HIGASHI-NIPPON BANK, LTD. (The Kanto Local Finance Bureau)  < Summary> The Kanto Local Finance Bureau took an administrative action against HIGASHI-NIPPON BANK, LTD., ordering the improvement of its business operations pursuant to the “Banking Act.” This administrative action is based on the findings from the FSA’s on-site and off-site inspections.
July 13, 2018	Publication of a casebook on consultation inquiries from financial institutions  < Summary> The FSA sets out in its “Strategic Directions and Priorities 2017-2018” to further enhance the FSA’s consultation responses to inquiries from financial institutions as part of the FSA’s governance reform. In this respect, the FSA published a casebook on key consultation inquiries received from financial institutions as well as the corresponding responses taken by the FSA in the anticipation that the casebook would be widely shared and utilized among financial institutions.
July 13, 2018	Publication of an interim report on the results of the FSA’s monitoring of regional banks’ investment in securities  < Summary> The FSA has conducted intensive monitoring (inclusive of on-site inspections) of regional banks’ investment in securities since the program year 2016. In this respect, the FSA has published an interim report on the results of its monitoring of regional banks’ investment in securities as well as the FSA’s perspectives on issues posed by regional banks.
July 13, 2018	Publication of an annual report for program year 2017 (July 2017 – June 2018) on the results of the FSA’s monitoring of regional banks  < Summary> The FSA sets out in its “Strategic Directions and Priorities 2017-2018” to conduct its continuous monitoring of regional banks for the establishment of sustainable business models. In this respect, the FSA published an annual report for program year 2017 (July 2017 - June 2018) on the results of the FSA’s monitoring of regional banks including the issues identified through its monitoring conducted in the program year 2017.

Securities

July 13, 2018

Administrative action against maneo market Inc. (The Kanto Local Finance Bureau)  < Summary> The Kanto Local Finance Bureau took an administrative action against maneo market Inc., ordering the improvement of its business operations pursuant to the “Financial Instruments and Exchange Act.” This administrative action is based on a recommendation from the Securities and Exchange Surveillance Commission (SESC) as a result of its on-site inspection.

Others

July 6 - 13, 2018	A series of requests for financial measures  to deal with disasters caused by the disastrous heavy rain in July 2018 < Summary> In the period from 6 to 13 July, 2018, the following local finance offices of the respective Local Finance Bureaus and the respective branches of the Bank of Japan issued joint statements titled “Financial Measures to deal with disasters caused by the disastrous heavy rain in July 2018” to the relevant financial institutions. The statements request financial institutions in the subject prefectures to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible.   July 13, 2018 The Yamaguchi Local Finance Office of the Chugoku Local Finance Bureau and the Bank of Japan’s Shimonoseki Branch Yamaguchi Prefecture July 8, 2018 The Gifu Local Finance Office of the Tokai Local Finance Bureau and the Bank of Japan’s Nagoya Branch Gifu Prefecture July 7, 2018 The Chugoku Local Finance Bureau and the Bank of Japan’s Hiroshima Branch Hiroshima Prefecture July 12, 2018 The Matsue Local Finance Office of the Chugoku Local Finance Bureau and the Bank of Japan’s Matsue Branch Shimane Prefecture July 7, 2018 The Tottori Local Finance Office of the Chugoku Local Finance Bureau and the Bank of Japan’s Matsue Branch Tottori Prefecture July 7, 2018 The Okayama Local Finance Office of the Chugoku Local Finance Bureau and the Bank of Japan’s Okayama Branch Okayama Prefecture July 7, 2018 (updated on July 9, 2018) The Kyoto Local Finance Office of the Kinki Local Finance Bureau and the Bank of Japan’ Kyoto Branch Kyoto Prefecture July 7, 2018 The Kobe Local Finance Office of the Kinki Local Finance Bureau and the Bank of Japan’s Kobe Branch Hyogo Prefecture July 7, 2018 The Matsuyama Local Finance Office of the Shikoku Local Finance Bureau and the Bank of Japan’s Matsuyama Branch Ehime Prefecture July 12, 2018 The Fukuoka Local Finance Bureau and the Bank of Japan’s Fukuoka Branch Fukuoka Prefecture
July 13, 2018	Publication of the “Order to Amend the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds”  < Summary> The National Police Agency (NPA), the FSA and other competent administrative agencies have published the “Order to Amend the Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds.” In response to the disastrous heavy rain in July 2018, the updates grant financial institutions the following mitigation measures with respect to the obligation of verification at the time of transaction stipulated in the “Ordinance for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds.” (1) Mitigation of the obligation for verification at the time of transaction when a transaction pertains to donation (2) Mitigation of methods of verification of customer identification data of the disaster victims (in terms of receiving declared identification data from disaster victims) The Order was enforced on July 13, 2018.
July 13, 2018	Publication of an outline of key comments received at the “Contact for Financial Policies Monitor,” a neutral third-party comprised of external experts  < Summary> To ensure the effectiveness and transparency of the Financial Policies Monitor System, the FSA published an outline of key comments newly received at the “Contact for Financial Policies Monitor,” a neutral third-party comprised of external experts, from January to March 2018. The outline also includes corresponding actions taken (or to be taken) by the FSA.
July 13, 2018	Publication of the minutes of the 28th Expert Panel on Policy Assessment  < Summary> The FSA published the minutes of the 28th Expert Panel on Policy Assessment held on May 21, 2018.
July 13, 2018	Establishment of a phone line for “Free Telephone Consultation Service for the Victims of the Disaster Caused by the Disastrous Heavy Rain in July 2018”  < Summary> In response to the disaster caused by the heavy rain in July 2018, the FSA’s Counseling Office for Financial Service Users has established a phone line for “Free Telephone Consultation Service for the Victims of the Disaster Caused by the Disastrous Heavy Rain in July 2018” mainly to respond to inquiries for the disaster-related points of contacts of the respective financial institutions and inquiries regarding transactions with financial institutions. Phone number: 0120-156811 (available only in Japanese)                       +81-3-5251-6813 (by VoIP phone, available only in Japanese) (Office hours: Weekdays from 10:00 a.m. to 5:00 p.m. (JST).)
July 12, 2018	Extension of the filing due dates of annual securities reports, quarterly securities reports, and semiannual securities reports in case of business impediments caused by the disastrous heavy rain in July 2018  < Summary> The FSA has announced that disaster-affected corporations may extend the filing due dates of their annual securities reports, quarterly securities reports, and semiannual securities reports if business impediments have been caused by the disastrous heavy rain in July 2018. Further inquiries including concerns on business impediments caused by the disastrous heavy rain are being accepted by the respective local finance bureaus and local finance branch bureaus.
July 9, 2018	Warnings about entities that are operating money lending businesses without proper registration  < Summary> The FSA (Local Finance Bureaus) updated warnings about entities that are operating money lending businesses without proper registration. The warnings include the updated list of entities that misrepresent their registration using fictitious or stolen registration numbers.