What’s New on the FSA Website

Weeks of December 25, 2018 - January 4, 2019

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

Public Comments

(The following public comments are available in Japanese)

December 28, 2018	Publication of the draft amendments to the Ordinance for Enforcement of the Banking Act and the regulatory notices pertaining to TLAC (Total Loss-Absorbing Capacity) requirements  < Summary> The FSA proposed the draft amendments to the Ordinance for Enforcement of the Banking Act and the regulatory notices pertaining to TLAC (Total Loss-Absorbing Capacity) requirements. The proposal mainly aims to introduce the TLAC requirements by the FSA as a home authority for financial institutions that are considered to have significant impact on the domestic financial system, as well as the requirements for domestic financial institutions in respect of holding TLAC bonds issued by both domestic and foreign financial institutions that are subject to TLAC requirements, based on the “Principles on Loss Absorbing and Recapitalisation Capacity of G-SIBs in Resolution” and “Standard TLAC holdings” which were respectively published by the FSB in November 2015 and by the BCBS in October 2016.
December 28, 2018	Publication of the draft amendments to the Cabinet Office Orders and the regulatory notices pertaining to leverage ratio requirements  < Summary> The FSA proposed the draft amendments to the Cabinet Office Orders and the regulatory notices pertaining to leverage ratio requirements. The proposal mainly aims to newly introduce the minimum leverage ratio requirement set at 3% (Pillar 1 requirement) for internationally active banks, based on the press release titled “Governors and Heads of Supervision finalise Basel III reforms” which was published by the BCBS in December 2017.
December 28, 2018	Publication of the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy  < Summary> The FSA proposed the draft amendments to the regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy. The proposal mainly aims to update the calculation methods for credit risk-weighted assets with respect to securitised products, based on the “Revisions to the securitisation framework” and “Revisions to the securitisation framework – Amended to include the alternative capital treatment for ‘simple, transparent and comparable’ securitisations” published in December 2014 and July 2016 respectively by the BCBS.
December 28, 2018	Publication of the draft amendments to the “Comprehensive Guidelines for Supervision of Major Banks, etc.” pertaining to liquidity ratio requirements  < Summary> The FSA proposed the draft amendments to the “Comprehensive Guidelines for Supervision of Major Banks, etc.” pertaining to liquidity ratio requirements.
December 27, 2018	Publication of the finalized “Basic Supervisory Guidelines for Support Agencies for Business Innovation”   < Summary> The Small and Medium Enterprise Agency and the FSA finalized the “Basic Supervisory Guidelines for Support Agencies for Business Innovation” which were subject to public consultation from November 9 to December 8, 2018. The Guidelines were enforced on December 27, 2018.
December 25, 2018	Publication of the draft amendments to the “Cabinet Office Order on Financial Instruments Business”  < Summary> The FSA proposed the draft amendments to the “Cabinet Office Order on Financial Instruments Business.” The proposal aims to mandate OTC FX margin brokers to enhance their equity capitals through stress tests and to disclose their risk factors mainly from the perspective of strengthening settlement risk management.
December 25, 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”  < 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, 2018 to June 30, 2019. The regulatory notice was enforced on December 25, 2018.

Press Releases

(The following press releases are available in English)

Others

December 28, 2018	Publication of the Report from the “Study Group on the Virtual Currency Exchange Services”
December 28, 2018	Stewardship Code : 239 institutional investors have signed up to the Principles for Responsible Institutional Investors as of December 14, 2018
December 28, 2018	Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”
December 27, 2018	Updated statistics of money lending business

(The following press releases are available in Japanese)

Councils

December 27, 2018	Publication of the report titled “Reviews on Regulation for Direct Financial Markets” approved by the “Working Group on Financial Markets” of the Financial System Council  < Summary> The FSA published the report titled “Reviews on Regulation for Direct Financial Markets” approved by the “Working Group on Financial Markets” of the Financial System Council.

Banks

December 26, 2018

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 2018, pursuant to the “Act on Emergency Measures for Early Strengthening of Financial Functions” and the “Deposit Insurance Act.”

December 25, 2018

Publication of statistics regarding unlawful reimbursement of deposits  < Summary> The FSA published statistics regarding 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.

Securities

December 26, 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 business without proper registration. (See the updated list of Japan-based entities).

 

Insurance

December 25, 2018

Approval of the application by Japan Post Insurance Co., Ltd. (Kampo)   < Summary> The FSA and the Ministry of Internal Affairs and Communications (MIC) approved the application by Japan Post Insurance Co., Ltd. (Kampo) in terms of its businesses, pursuant to the “Postal Service Privatization Act.” The approval mainly pertains to the application of ordinary whole-life insurance, special whole-life insurance, ordinary endowment insurance, and total medical rider (total medical care optional policy) wherein insurance details are changed by mitigating the respective underwriting standards, and to the application of advanced medical rider (advanced medical care optional policy).

 

Others

December 28, 2018

Publication of a report titled “Support for the Corporate Initiatives to Be Taken for the Same-Contents Disclosure of Business Reports and Annual Securities Reports” (provisional English title)  < Summary> Based on the “Growth Strategy 2018,” a report titled “Support for the Corporate Initiatives to Be Taken for the Same-Contents Disclosure of Business Reports and Annual Securities Reports” (provisional English title) was published, which was jointly compiled by the Cabinet Secretariat, the Ministry of Justice (MOJ), the Ministry of Economy, Trade and Industry (METI), and the FSA. The report reviews mainly the ways to support corporations which implement same-contents corporate disclosure of annual securities reports pursuant to the “Financial Instruments and Exchange Act” and business reports and financial statements pursuant to the “Companies Act.” The FSA shares the link to the report on its website.

December 27, 2018

Publication of the updated “Order for Enforcement of the Payment Services Act”  < Summary> The FSA published the updated “Order for Enforcement of the Payment Services Act.” Within the scope of the authority of the FSA’s Commissioner as delegated by the Prime Minister, with regard to the authority delegated to the Director General of each Local Finance Bureau by the Commissioner, the Order updated the scope of authority as to where the Commissioner is not precluded from personally exercising its authority.