What’s New on the FSA Website

Week of June 24, 2019 - June 28, 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)

June 28, 2019	Publication of the finalized amendments to the “Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions”  < Summary> The FSA finalized the amendments to the “Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions” pertaining to the reassessment of the early warning system. The amendments update the FSA’s (prudential) monitoring framework for regional financial institutions from the perspective of encouraging regional financial institutions to improve their businesses as early as possible, so that they can ensure their financial soundness in the future, thereby fully attaining financial intermediation. The amended Guidelines were enforced on June 28, 2019.
June 28, 2019	Publication of the finalized regulatory notice designating commodities to be stipulated under the “Financial Instruments and Exchange Act” based on the “Order for Enforcement of the Financial Instruments and Exchange Act”  < Summary> The FSA published the finalized regulatory notice designating commodities to be stipulated under the “Financial Instruments and Exchange Act” based on the “Order for Enforcement of the Financial Instruments and Exchange Act.” The amendments designate certain commodities under the said Act as those subject to market derivatives transactions at so-called comprehensive exchanges. The amended regulatory notice was enforced on June 28, 2019.
June 28, 2019	Publication of the draft “Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act”  < Summary> The FSA proposed the draft “Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act.” The proposal pertains to an overall reassessment of the types of reports and documents to be filed by insurance companies upon a request for reporting from the authorities.
June 28, 2019	Publication of the draft amendments to the “Comprehensive Guidelines for Supervision of Insurance Companies”  < Summary> The FSA proposed the draft amendments to the “Comprehensive Guidelines for Supervision of Insurance Companies.” The proposal aims to clarify that registered insurance solicitors (agents) may use their birth names or original family names (as opposed to using their married names), when introducing themselves to customers, whenever the solicitors (agents) engage in insurance solicitation.
June 27, 2019	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 June 30 to December 31, 2019. The amended regulatory notice was enforced on June 27, 2019.

Press Releases

(The following press releases are available in English)

International 

June 28, 2019	The Basel Committee on Banking Supervision (BCBS) published its Overview of Pillar 2 supervisory review practices and approaches
June 24, 2019	Comment Letter on the U.S. agencies’ proposed changes to regulatory requirements for foreign banking organizations
June 24, 2019	The Basel Committee on Banking Supervision (BCBS) discusses policy and supervisory initiatives and approves implementation reports
June 24, 2019	The Organisation for Economic Co-operation and Development (OECD) published 'OECD Corporate Governance Factbook - 2019'

Publication

June 26, 2019	Publication of the 191st issue of the FSA’s journal, Access FSA

Others

June 28, 2019	Stewardship Code : 251 institutional investors have signed up to the Principles for Responsible Institutional Investors as of June 28, 2019
June 27, 2019	Updated statistics of money lending business

(The following press releases are available in Japanese)

Banks

June 28, 2019	Publication of a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners”  < Summary> The FSA published a statistical report on financing by financial institutions for enterprises utilizing the “Guidelines for Personal Guarantee Provided by Business Owners.” The report reflects the period between October 1, 2018 and March 31, 2019. (The report is regularly published to further promote the utilization of the Guidelines).
June 28, 2019	Overview of modifications to lending conditions by financial institutions  < Summary> The FSA published an overview of modifications to lending conditions made by financial institutions for the period from April 1, 2018, to March 31, 2019. Although the FSA has thus far required each financial institution to file a report on modifications to lending conditions even after the statutory filing deadline (March 31, 2013) pursuant to the enforcement of the “Act on Temporary Measures to Facilitate Financing for Small and Medium-Sized Enterprises” (the SME Financing Facilitation Act), the FSA has announced the suspension of its collection of data reports from financial institutions after the reporting of March 2019. The decision to suspend collection is based on the fact that the implementation rate for modifications to lending conditions has remained at a high level, exceeding 95%, since the enforcement of the said Act, as well as on requests for deregulation from the financial sector. The FSA may resume the collection of the said data reports from financial institutions as necessary in the event of material changes in the current approaches for the facilitation in financing by financial institutions or sudden changes in economic circumstances.
June 26, 2019	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 March 31, 2019, pursuant to the “Act on Emergency Measures for Early Strengthening of Financial Functions” and the “Deposit Insurance Act.”

Securities

June 28, 2019

Administrative action against Tokaitoshijogenservice LLC (The Tokai Local Finance Bureau)   < Summary> The Tokai Local Finance Bureau took an administrative action against Tokaitoshijogenservice LLC ordering the revocation of the entity’s registration and 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.

June 26, 2019

Administrative action against findedge.jp., a notifier of specially permitted business for qualified institutional investors (SPBQII) (The Kinki Local Finance Bureau)  < Summary> The Kinki Local Finance Bureau took an administrative action against findedge.jp., a notifier of specially permitted business for qualified institutional investors (SPBQII), ordering the abolition of its entire SPBQII and 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

June 28, 2019	License granted to Rescue Insurance Co.,Ltd. to conduct non-life insurance business   < Summary> The FSA granted a license to Rescue Insurance Co.,Ltd. to conduct non-life insurance business pursuant to the “Insurance Business Act.”
June 28, 2019	License granted to Sakura Insurance Inc. to conduct non-life insurance business   < Summary> The FSA granted a license to Sakura Insurance Inc. to conduct non-life insurance business pursuant to the “Insurance Business Act.”
June 26, 2019	Authorization of the merger of Saison Automobile & Fire Insurance Co., Ltd and Sonpo 24 Insurance Company Limited   < Summary> The FSA authorized the merger of Saison Automobile & Fire Insurance Co., Ltd and Sonpo 24 Insurance Company Limited pursuant to the “Insurance Business Act.”

 

Others

June 28, 2019	Publication of the level of remuneration paid to the officers of the authorized corporations  < Summary> The FSA published the level of remuneration paid to the officers of the authorized corporations under its jurisdiction: Deposit Insurance Corporation of Japan, and Banks’ Shareholdings Purchase Corporation. Such information is subject to disclosure on an annual basis by respective competent government agencies and is required to be presented on the format designated by the Ministry of Internal Affairs and Communications.
June 28, 2019	Publication of the assessment report on the FSA’s monitoring implementation status from viewpoints of financial institutions based on a series of consultation with financial institutions by a third-party consulting service provider  < Summary> The FSA sets out in its “JFSA’s supervisory approaches” to introduce a third-party assessment on the FSA’s supervisory approaches by experts who are well-versed in business improvement and governance practices for the quality improvement in the FSA’s financial administration such as in respect of working-level supervisory approaches inclusive of monitoring practices. In this regard, the FSA has entrusted Protiviti Inc., a third-party consulting service provider, to conduct the assessment on the FSA’s monitoring practices through a series of consultation with financial institutions, and thereafter published on its website the assessment report on the FSA’s monitoring implementation status from viewpoints of financial institutions which was compiled by the said consulting service provider.
June 28, 2019	Publication of the report on trends and issues regarding compliance risk management at financial institutions  < Summary> The FSA published the report on trends and issues regarding compliance risk management at financial institutions. The report includes cases ascertained by the FSA through its dialogues with managements of financial institutions as well as the respective monitoring results in recent years, which reflect emerging trends and issues.
June 27, 2019	Publication of the agenda and handouts of the 57th Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group  < Summary> The FSA published the agenda and handouts of the 57th Meeting of the Financial Service ADR Liaison Group, which was held on June 26, 2019.
June 25, 2019	Publication of the agenda and handouts of the seventh meeting of the “Payments Council on Financial Innovation”  < Summary> The FSA published the agenda and handouts of the seventh meeting of the “Payments Council on Financial Innovation,” which was held on June 24, 2019.
June 25, 2019	Warning issued to Cielo EX Limited that is operating the virtual currency exchange business without proper registration  < Summary> The FSA issued a warning to Cielo EX Limited that is operating the virtual currency exchange business without proper registration in violation of the “Payment Services Act.”
June 24, 2019	Publication of the “Cabinet Office Order on Arrangement of the FSA-related Cabinet Office Orders in Accordance with the Enforcement of the Act for Partial Revision of the Unfair Competition Prevention Act”  < Summary> The FSA updated the “Cabinet Office Order on Arrangement of the FSA-related Cabinet Office Orders in Accordance with the Enforcement of the Act for Partial Revision of the Unfair Competition Prevention Act.” The updates mainly pertain to minor technical adjustments to reflect the updated terminologies quoted from the “Industrial Standardization Act.” The updated Cabinet Office Order was enforced on July 1, 2019 in tandem with the enforcement of other relevant applicable orders.