Financial Services AgencyFSA Weekly Review No.338

April 4, 2019

What’s New on the FSA Website

Week of  March 25, 2019 - March 29, 2019

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

Press Conferences

March 28, 2019 Press Conference by the Minister for Financial Services (March 12, 2019) (Available in Japaneseopen new window)

Public Comments

(The following public comments are available in Japanese)

March 29, 2019 Publication of the finalized amendments to the report titled “JFSA’s Supervisory Approaches Aimed at Financial Stability (Basic Policy on Prudential Policies)” (provisional English title) open new window
< Summary>
The FSA finalized the amendments to the report titled “JFSA’s Supervisory Approaches Aimed at  Financial Stability (Basic Policy on Prudential Policies)” (provisional English title) which was subject to public consultation from June 29 to July 30, 2018. The FSA will stay committed to the continuous improvement in achieving a sustainable financial system by engaging in discussions with wide-ranging stakeholders including financial institutions and users.
March 27, 2019 Publication of the draft amendments to the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators” open new window
< Summary>
The FSA proposed the draft amendments to the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators.” The proposal aims to reflect the FSB’s policy recommendations pertaining to repos and lending, and borrowing of securities which were finalized in 2015, mainly in respect of the following:
(1) To request investment management business operators to enhance the contents of their reporting to end-investors
(2) To include various elements to minimum standards pertaining to the reinvestment of cash collaterals
(3) To set out requirements that should be included in minimum standards for the assessment and management of collaterals
March 25, 2019 Publication of the finalized amendments to the “Cabinet Office Order on Financial Instruments Business, etc.” open new window
< Summary>
The FSA finalized the amendments to the “Cabinet Office Order on Financial Instruments Business, etc.” The amendments mandate OTC FX margin brokers the following, mainly from the perspective of strengthening settlement risk management:
(1) To enhance their equity capitals through stress tests
(2) To disclose their risk factors
The amended Order itself was enforced in tandem with the relevant applicable regulatory notices and supervisory guidelines on April 1, 2019, while the aforementioned amendments (1) and (2) will be respectively applied from January 1, 2020 and September 1, 2019.

Press Releases

(The following press releases are available in English)

International 

March 26, 2019 The Basel Committee on Banking Supervision published the results of a survey “Proportionality in bank regulation and supervision – a survey on current practices” open new window
March 26, 2019 The Basel Committee on Banking Supervision published its latest Basel III Monitoring Report open new window


Others

March 28, 2019 Updated statistics of money lending business
March 27, 2019 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

March 27, 2019 Publication of the agenda and handouts of the plenary meeting of the Business Accounting Council and the 43rd meeting of the Audit Standard Committee of the Business Accounting Council open new window
< Summary>
The FSA published the agenda and handouts of the plenary meeting of the Business Accounting Council and the 43rd meeting of the Audit Standard Committee of the Business Accounting Council, which were both held on March 28, 2019.
March 26, 2019 Publication of the agenda and handouts of the 20th meeting of the “Working Group on Financial Markets” of the Financial System Council open new window
< Summary>
The FSA published the agenda and handouts of the 20th meeting of the “Working Group on Financial Markets” of the Financial System Council, which was held on March 26, 2019.


Banks

March 29, 2019 Authorization granted to Fukuoka Financial Group, Inc. for acquiring The Eighteenth Bank, Limited as a new subsidiary open new window
< Summary>
The FSA granted authorization to Fukuoka Financial Group, Inc. for acquiring The Eighteenth Bank, Limited as a new subsidiary pursuant to the “Banking Act.”
March 29, 2019 Authorization granted to au Financial Holdings Corporation to become a bank holding company by having Jibun Bank Corporation as its subsidiary open new window
< Summary>
The FSA granted authorization to au Financial Holdings Corporation to become a bank holding company by having Jibun Bank Corporation as its subsidiary, pursuant to the “Banking Act.”
March 29, 2019 Authorization granted to AFS Corporation Co.,Ltd. to become a bank holding company by having AEON BANK, LTD. as its subsidiary open new window
< Summary>
The FSA granted authorization to AFS Corporation Co.,Ltd. to become a bank holding company by having AEON BANK, LTD. as its subsidiary, pursuant to the “Banking Act.”
March 29, 2019 Approval of the business restructuring plan for KDDI CORPORATION open new window
< Summary>
The FSA approved and published the business restructuring plan for KDDI CORPORATION based on the “Industrial Competitiveness Enhancement Act.”
March 29, 2019 Authorization of the merger of The Kinki Osaka Bank, Ltd. and Kansai Urban Banking Corporation open new window
< Summary>
The FSA authorized the merger of The Kinki Osaka Bank, Ltd. and Kansai Urban Banking Corporation pursuant to the “Banking Act.”
March 28, 2019 Publication of the “Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act” pertaining to the partial enforcement of the “Act to amend the Act on the Management Organization for Postal Savings and Postal Life Insurance, Independent Administrative Agency” open new window
< Summary>
The FSA published the “Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act” pertaining to the partial enforcement of the “Act to amend the Act on the Management Organization for Postal Savings and Postal Life Insurance, Independent Administrative Agency.” The updates to the Order pertain to minor technical adjustments. The updated Order was enforced on April 1, 2019 in tandem with the enforcement of other relevant applicable orders and ordinances.
March 28, 2019 Publication of the survey results on the actual state of financing for investment properties open new window
< Summary>
The FSA published the survey results on the actual state of financing through financial institutions for individuals who intend to acquire real estate properties for the purpose of investment (so-called investment properties). The survey was aimed at gaining a comprehensive perspective of investment property financing across financial institutions particularly in terms of the scale of financing and operational management structures.


Securities

March 29, 2019 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 updated lists of Japan-based entitiesopen new window and foreign-based entitiesopen new window).
March 29, 2019 Administrative action against a notifier of specially permitted business for qualified institutional investors (SPBQII) who violated the previous order to improve its business operations open new window
< Summary>
The Kanto Local Finance Bureau took an administrative action against a notifier of specially permitted business for qualified institutional investors (SPBQII) who violated the previous order to improve its business operations, ordering the abolition of the notifier’s entire SPBQII and the improvement of its business operations pursuant to the “Financial Instruments and Exchange Act.”
March 29, 2019 Administrative actions against three notifiers of specially permitted business for qualified institutional investors (SPBQII) who failed in either or both of filing mandatory documents in full to the authorities in violation of an order for the collection of reports and of following the previous orders to improve their business operations open new window
< Summary>
The Kanto Local Finance Bureau took administrative actions against three notifiers of specially permitted business for qualified institutional investors (SPBQII) who failed in either or both of filing the mandatory documents in full to the authorities in violation of an order for the collection of reports and of following the previous orders to improve their business operations. The notifiers were ordered either or both of the abolition of their entire SPBQII and the improvement of their businesses pursuant to the “Financial Instruments and Exchange Act.”
March 27, 2019 Warning against the increasing risk of fraud associated with social lending (peer-to-peer lending) investment open new window
< Summary>
The FSA issued a warning against the increasing risk of fraud associated with social lending (peer-to-peer lending) investment. The FSA alerts retail investors to be fully vigilant against such risk prior to making investment decisions in social lending, by sharing on its website the basic risk prevention tips and advices from the perspective of ensuring investor protection.
March 26, 2019 Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2018) open new window
< Summary>
The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2018, pursuant to the “Financial Instruments and Exchange Act.” This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.
March 26, 2019 Administrative penalty charge against an individual for committing insider trading regarding stocks of Ci:z Holdings Co., Ltd. by using received insider information open new window
< Summary>
On March 25, 2019, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of Ci:z Holdings Co., Ltd. by using information received from an officer of the entity.
March 26, 2019 Administrative penalty charge against an individual for committing insider trading regarding stocks of Three F Co.,Ltd. by using received insider information open new window
< Summary>
On March 25, 2019, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of Three F Co.,Ltd. by using information received from an employee of the contract negotiator with the entity.
March 26, 2019 Administrative penalty charge against TOHO KINZOKU CO., LTD. for making false statements in its securities reports open new window
< Summary>
On March 25, 2019, the FSA issued an order to impose an administrative penalty charge against TOHO KINZOKU CO., LTD. for making false statements in its securities reports.
March 26, 2019 Administrative penalty charge against SHINYEI KAISHA for making false statements in its securities reports open new window
< Summary>
On March 25, 2019, the FSA issued an order to impose an administrative penalty charge against SHINYEI KAISHA for making false statements in its securities reports.
March 25, 2019 Administrative action against Triple A Investment Advisor,Inc. (The Kanto Local Finance Bureau) open new window
< Summary>
The Kanto Local Finance Bureau took an administrative action against Triple A Investment Advisor,Inc., ordering the suspension of the entity’s business operations from March 25 to April 24, 2019 in terms of the solicitation for concluding new investment advisory contracts (inclusive of the conclusion of modification agreements that set out the increase in the advisory fee under the investment advisory contracts) and any other activities that pertain to the conclusion of new investment advisory contracts and thereby 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.
March 25, 2019 Administrative action against FIP Asset Management Co.,Ltd. (The Kanto Local Finance Bureau) open new window
< Summary>
The Kanto Local Finance Bureau took an administrative action against FIP Asset Management Co.,Ltd., ordering the suspension of the entity’s business operations from March 25 to April 24, 2019 in terms of the solicitation for concluding new investment advisory contracts (inclusive of the conclusion of modification agreements that set out the increase in the advisory fee under the investment advisory contracts) and any other activities that pertain to the conclusion of new investment advisory contracts and thereby 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.

 

Insurance

March 26, 2019 Authorization granted to AXA Holdings Japan Co., Ltd. for the establishment of an insurance holding company open new window
 < Summary>
The FSA granted authorization to AXA Holdings Japan Co., Ltd. for the establishment of the insurance holding company which has insurance companies as its subsidiaries, pursuant to the “Insurance Business Act.”

 

Others

March 29, 2019 Publication of the FSA’s inventory results from the inventory processing of the (administrative procedures related) information held by administrative organs open new window
< Summary>
The FSA published its inventory results from the inventory processing of the (administrative procedures related) information held by administrative organs in accordance with the “Declaration to Be the World’s Most Advanced IT Nation – Basic Plan for the Advancement of Public and Private Sector Data Utilization” (Cabinet decision on June 15, 2018) and a government-wide implementation plan based on the Digital Government Strategy (Cabinet decision on July 20, 2018).

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