What’s New on the FSA Website

Week of  June 17, 2019 - June 21, 2019

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

Press Conferences

June 21, 2019	Press Conference by the Minister for Financial Services (June 14, 2019) Japanese version

Public Comments

(The following public comments are available in Japanese)

June 21, 2019	Publication of the finalized “Discussion Paper on Dialogues and Practices Regarding IT Governance at Financial Institutions” (provisional English title)  < Summary> The FSA finalized the “Discussion Paper on Dialogues and Practices Regarding IT Governance at Financial Institutions” (provisional English title). In light of the growing importance of optimizing IT systems at financial institutions in carrying out their respective strategies to enhance corporate values, the Paper mainly outlines key discussion points on holding dialogues on IT governance with financial institutions and reflects amendments based on comments received through public consultation.
June 21, 2019	Publication of the draft amendments to the “Guidelines for Administrative Processes” regarding virtual currency (crypto-asset) exchange services  < Summary> The FSA proposed the draft amendments to the “Guidelines for Administrative Processes” regarding virtual currency (crypto-asset) exchange services. The FSA has so far shared information on the actual state and issues of virtual currency (crypto-asset) exchange service providers through its publications, including the interim monitoring results of virtual currency (crypto-asset) exchange service providers. This was based on a series of onsite and offsite inspections/monitoring that was carried out in response to cyber incidents pertaining to losses of virtual currencies (crypto-assets) under service providers’ management due to fraudulent leakage involving unauthorized access by external parties. In this respect, the proposal aims to clarify and reflect the contents of the said FSA publications in supervisory focal points in the Guidelines so that service providers can ensure appropriate business management structures and take appropriate responses in the event of fraudulent leakage of assets, etc.  It also adds new supervisory focal points pertaining to ICO (Initial Coin Offering) subject to virtual currency (crypto-asset) exchange services.
June 21, 2019	Publication of the finalized amendments to the “Order for Enforcement of the Financial Instruments and Exchange Act” and the “Cabinet Office Order on Disclosure of Corporate Affairs”  < Summary> The FSA finalized the amendments to the “Order for Enforcement of the Financial Instruments and Exchange Act” and the “Cabinet Office Order on Disclosure of Corporate Affairs.” The amendments mainly; (1) update the disclosure requirements pertaining to restricted-equity based compensation for directors and officers, and (2) enhance the information pertaining to reasons for the change of auditors in the extraordinary report. While the amended “Cabinet Office Order on Disclosure of Corporate Affairs” was enforced on June 21, 2019 (the provisions of (1) above will be enforced on July 1, 2019), the amended “Order for Enforcement of the Financial Instruments and Exchange Act” will be enforced on July 1, 2019.
June 18, 2019	Publication of the finalized amendments to the “Cabinet Office Order on Financial Instruments Business”  < Summary> The FSA finalized the amendments to the “Cabinet Office Order on Financial Instruments Business.” The amendments mandate OTC FX margin brokers to ensure preservation of transaction data and to improve their reporting structure to the Financial Instruments Firms Association. While the amended Cabinet Office Order will be enforced on August 1, 2019, OTC FX margin brokers shall be subject to application of the amended Cabinet Office Order from April 1, 2021.

Press Releases

(The following press releases are available in English)

International 

June 19, 2019	International Association of Insurance Supervisors (IAIS) has issued a public consultation on revisions to the ICPs and ComFrame related to the holistic framework for systemic risk in the insurance sector
June 19, 2019	International Association of Insurance Supervisors (IAIS) has issued a public consultation on IAIS supervisory material

Insurance

June 21, 2019	Overview of financial results of major insurance companies as of March 31, 2019

Others

June 18, 2019	The seventh meeting of the Payments Council on Financial Innovation

(The following press releases are available in Japanese)

Banks

June 21, 2019	Authorization granted to The Ashikaga Bank,Ltd. for its engagement in trust business  < Summary> The FSA granted authorization to The Ashikaga Bank,Ltd. for its engagement in trust business pursuant to the “Act on Engagement in Trust Business by a Financial Institution.”

Securities

June 21, 2019

Updated list of entities that are operating financial instruments businesses without proper registration (The Tokai Local Finance Bureau)  < Summary> The FSA and the Tokai 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).

June 21, 2019

The first trial of an administrative penalty case against an individual for recommending the purchase of stocks of RUDEN HOLDINGS Co.,Ltd. based on insider information obtained as an officer of the entity  < Summary> On June 28, 2019, the first trial of an administrative penalty case against an individual for recommending the purchase of stocks of RUDEN HOLDINGS Co.,Ltd. based on insider information obtained as an officer of the entity to a non-insider who purchased the stocks based on the officer’s recommendation will be conducted.

 

Insurance

June 19, 2019	License granted to Swiss Re Asia Pte. Ltd. to conduct foreign non-life insurance business   < Summary>  The FSA granted a license to Swiss Re Asia Pte. Ltd. to conduct foreign non-life insurance business pursuant to the “Insurance Business Act.”

 

Others

June 21, 2019	Publication of the analysis report on system failures at financial institutions  < Summary> The FSA published the analysis report on system failures at financial institutions. Based on the FSA’s analysis of statutory system failure reports filed by financial institutions, wherein emerging risks pertaining to the accelerating digitalization were identified, the analysis report contains the analytical results (with respect to trends, events, causes, and countermeasures of system failures), and is an informative system risk management reference for financial institutions.
June 21, 2019	Publication of the monitoring report on system integration and renewal at financial institutions  < Summary> The FSA published the monitoring report on system integration and renewal at financial institutions.The report is based on the FSA’s monitoring of system integration and renewal at financial institutions, wherein certain problematic practices of multiple financial institutions were ascertained as common pitfalls that any financial institution could be prone to mishandling. The report contains cases of problematic practices (classified by business types/lines, issues, causes, and countermeasures) and is an informative reference for financial institutions that are implementing large-scale, complex system integration and renewal.
June 21, 2019	Publication of the report on cyber security across the financial sector  < Summary> The FSA published the report on cyber security across the financial sector. The report mainly reflects the current state and common issues of cyber security across the financial sector ascertained in the program year 2018, based on the FSA’s “Policy Approaches to Strengthen Cyber Security in the Financial Sector.”
June 21, 2019	Administrative action against Fisco Cryptocurrency Exchange Inc.  < Summary> The FSA took an administrative action against Fisco Cryptocurrency Exchange Inc., ordering the improvement of its business operations pursuant to the “Payment Services Act.” This administrative action is based on the findings from the FSA’s on-site inspection, in which the entity’s business management structure was found to be problematic.