What’s New on the FSA Website

Week of  May 27, 2019 - May 31, 2019

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

Press Conferences

May 31, 2019	Press Conference by the Minister for Financial Services (May 17, 2019) (Japanese version)
May 27, 2019	Press Conference by the Minister for Financial Services (May 14, 2019) (Available in Japanese)

Public Comments

(The following public comments are available in Japanese)

May 31, 2019	Publication of the draft “Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act”  < Summary> The FSA published the draft “Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act.” The proposal mainly pertains to the disclosure regarding; (1) unification of non-performing loans disclosed based on the “Financial Reconstruction Act” and the “Banking Act”; and (2) net profits from core business operations (excluding gains or losses of investment trusts, etc. to be cancelled).
May 31, 2019	Public consultation on the revisions of the respective Exposure Drafts of the Audit Standards, the Interim (Semi-annual) Audit Standards, and the Quarterly Review Standards  < Summary> The Audit Standard Committee of the Business Accounting Council (which is comprised of external experts and stakeholders, wherein the FSA serves as the secretariat) has published the revisions of the respective Exposure Drafts of the Audit Standards (which mainly mandate an auditor to state the basis of audit opinions in the auditor’s report, and update the auditor’s duty of confidentiality); the Interim (Semi-annual) Audit Standards; and the Quarterly Review Standards (which mainly update the specifics of matter-paragraphs in the auditor’s report based on the revision of the Audit Standards), whereby the Audit Standard Committee has invited public comments on the revisions.
May 29, 2019	Publication of the draft “Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Exchanges”  < Summary> The FSA published the draft “Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Exchanges.” From the perspective of promoting the use of financial instruments clearing organizations, the proposal mainly aims to include a LG (Letter of Guarantee), which is a right to receive a guarantee by a financial institution as securities substituted for clearing margin, into the category of cover-deals for OTC FX margin transactions.

Press Releases

(The following press releases are available in English)

International 

May 29, 2019	International Organization of Securities Commissions (IOSCO) published the consultation report titled 'Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms'
May 28, 2019	The Asia Region Funds Passport Joint Committee held its sixth face-to-face meeting

Securities

May 28, 2019	Administrative Action against Nomura Holdings, Inc. and Nomura Securities Co., Ltd.

Publication

May 28, 2019	Publication of the 190th issue of the FSA’s monthly journal, Access FSA

Others

May 31, 2019	Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act”
May 31, 2019	International Forum of Independent Audit Regulators Report on 2018 Survey of Inspection Findings
May 30, 2019	Updated statistics of money lending business

(The following press releases are available in Japanese)

Councils

May 31, 2019	Publication of the agenda and handouts of the second meeting of the “Specialized Study Group on Japanese Market Structure” under the Financial System Council  < Summary> The FSA published the agenda and handouts of the second meeting of the “Specialized Study Group on Japanese Market Structure” under the Financial System Council, which was held on May 31, 2019.
May 29, 2019	Publication of the agenda and handouts of the 11th meeting (in the program year 2018) of the “Study Group on the Financial System” under the Financial System Council  < Summary> The FSA published the agenda and handouts of the 11th meeting (in the program year 2018) of the “Study Group on the Financial System” under the Financial System Council, which was held on May 29, 2019.

Securities

May 31, 2019	Administrative penalty charge against an individual for market manipulation regarding stocks of ELNA CO., LTD., ASAHI EITO CO.,LTD., and Nuts Inc.  < Summary> On May 30, 2019, the FSA issued an order to impose an administrative penalty charge against an individual for market manipulation regarding stocks of ELNA CO., LTD., ASAHI EITO CO.,LTD., and Nuts Inc.
May 31, 2019	Administrative penalty charge against RS Technologies Co., Ltd. for making false statements in its securities reports  < Summary> On May 30, 2019, the FSA issued an order to impose an administrative penalty charge against RS Technologies Co., Ltd. for making false statements in its securities reports.
May 31, 2019	Administrative penalty charge against an individual for using fraudulent means regarding stocks of WILL GROUP, INC. and four other stocks  < Summary> On May 30, 2019, the FSA issued an order to impose an administrative penalty charge against an individual for using fraudulent means regarding stocks of WILL GROUP, INC. and four other stocks.
May 31, 2019	Administrative penalty charge against an individual for using fraudulent means regarding stocks of Livesense Inc., NIPPO LTD., and SEPTENI HOLDINGS CO., LTD.  < Summary> On May 30, 2019, the FSA issued an order to impose an administrative penalty charge against an individual for using fraudulent means regarding stocks of Livesense Inc., NIPPO LTD., and SEPTENI HOLDINGS CO., LTD.
May 31, 2019	Administrative penalty charges against nine individuals for committing insider trading regarding stocks of Takata Corporation* by using insider information received as employees of the entity (1) (2) (3) (4) (5) (6) (7) (8) (9)  < Summary> On May 30, 2019, the FSA issued orders to impose administrative penalty charges against nine individuals for committing insider trading regarding stocks of Takata Corporation* by using information received as employees of the entity. *: Takata Corporation was delisted in July 2017.
May 31, 2019	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 a warning to an entity that is operating financial instruments business without proper registration. (See the updated list of  Japan-based entities ).
May 31, 2019	Revision of the FSA’s regulatory notice concerning the designation of related corporations of credit rating agencies (group-based designation concerning explanatory items of unregistered credit ratings)  < 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 their customers is partially reduced when securities companies use credit ratings provided by the agencies which are on the list.
May 28, 2019	Administrative actions against Nomura Holdings, Inc. and its subsidiary, Nomura Securities Co.,Ltd.  < Summary> The FSA took administrative actions against Nomura Holdings, Inc. (NHI) and its subsidiary, Nomura Securities Co.,Ltd. (NSC), ordering the improvement of their business operations pursuant to the “Financial Instruments and Exchange Act.” These administrative actions are based on the findings mainly from the statutory incident report submitted by NHI pursuant to the Act, as well as the results of the internal investigation conducted by a special investigation team inclusive of independent external professionals under NHI Audit Committee. The entities’ business management systems in terms of information control were found to be inadequate.

Others

May 31, 2019	Publication of “Statistics of NISA and Junior NISA Accounts” (revised figures) as of December 31, 2018  < Summary> The FSA published “Statistics of NISA and Junior NISA Accounts” (revised figures). As of December 31, 2018, there were approximately 12.5 million NISA accounts in total, and approximately 15.7 trillion yen (approximately 143.5 billion USD) was invested through the NISA accounts, among which, 93.1 billion yen (approximately 849.7 million USD) was invested through approximately 1.0 million accounts of Dollar-Cost Averaging NISA (individual saving account for periodic investment) which has started since January 2018.
May 31, 2019	Establishment of the “Study Group on Economic Value-based Solvency Framework”  < Summary> The FSA established the “Study Group on Economic Value-based Solvency Framework,” to seek directions for future introduction of economic value-based solvency framework for insurance companies in Japan, while also taking into account global developments on the matter. The Study Group consists of academics and practitioners with relevant expertise and perspectives. Its first meeting will be held on June 26, 2019.
May 31, 2019	Development of the FSA’s facilitation scheme for online administrative procedure  < Summary> The FSA published the development of its facilitation scheme for online administrative procedure as of March 31, 2017 and March 31, 2018, pursuant to the “Act on Utilization of Information and Communication Technology in Administrative Procedure.”
May 28, 2019	Publication of a new column titled “Candid Roundtable Talks on Dollar-Cost Averaging NISA” (provisional English title) on a subpage of the “NISA Official Promotion Webpage” with the first volume of a series of roundtable talks  < Summary> The FSA published a new column titled “Candid Roundtable Talks on Dollar-Cost Averaging NISA” (provisional English title) on a subpage of the “NISA Official Promotion Webpage,” with the first volume of a series of roundtable talks. The column mainly shares informative quotes from a series of candid roundtable talks between four experienced individual investors and a non-investor (a married working mother with young children) who currently has second thoughts on investment in terms of building assets (for being overwhelmed by an abundance of dollar-cost averaging NISA account options offered by numerous financial institutions, which makes it hard to pick out one), wherein the experienced individual investors clarify/share their respective ideas on personal portfolio management in a practical manner from a child-rearing household perspective which may provide hesitant non-investors with some helpful insights into finding their own optimal portfolio management strategies for household asset building through control over savings and investment according to the respective life stages and objectives.