Financial Services AgencyFSA Weekly Review No.372

December 19, 2019

What’s New on the FSA Website

Week of December 9, 2019 - December 13, 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 13, 2019 Publication of the finalized "Cabinet Office Order to Amend the Ordinance for Enforcement of the Act on Utilization of Information and Communications Technology in Administrative Procedure, etc. Pertaining to Finance Related Laws and Regulations Under the Jurisdiction of the Cabinet Office"open new window
<Summary>
The FSA finalized the "Cabinet Office Order to Amend the Ordinance for Enforcement of the Act on Utilization of Information and Communications Technology in Administrative Procedure, etc. Pertaining to Finance Related Laws and Regulations Under the Jurisdiction of the Cabinet Office" in accordance with the enactment of the "Act on Partial Revision of the Act on Utilization of Information and Communications Technology in Administrative Procedure, etc. to Improve the Convenience of Stakeholders Who Engage in Administrative Procedures, and to Ensure Simplification and Efficiency of Administrative Operations by Leveraging Information and Communications Technology" (provisional English Law title). The amendments hereby have administrative procedures implemented on an online basis in principle, and expressly set forth such rule in the applicable Cabinet Office Orders and regulatory notices which are under the jurisdiction of the FSA. The amended Cabinet Office Order was enforced on December 16, 2019 in tandem with other applicable Cabinet Office Orders and regulatory notices.
December 13, 2019 Publication of the finalized revisions to the "Standards and Practice Standards for Management Assessment and Audit concerning Internal Control over Financial Reporting" (Council Opinions)open new window
<Summary>
The Business Accounting Council (which is comprised of external experts and stakeholders, wherein the FSA serves as the secretariat) has finalized the revisions of the "Standards and Practice Standards for Management Assessment and Audit concerning Internal Control over Financial Reporting" (Council Opinions), which were subject to public consultation during the period between September 6 and December 7, 2019. The revisions mainly update the specifics of matter-paragraphs in the auditor's report based on the revision of the Audit Standards. The finalized revisions have taken effect on December 13, 2019.
December 12, 2019 Publication of the finalized regulatory notice of the "Criteria for Payment of Insurance Claims, etc. of Compulsory Automobile Liability Insurance and Mutual Aid Money, etc. of Compulsory Automobile Liability Mutual Aid"open new window
<Summary>
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the FSA jointly finalized the regulatory notice of the "Criteria for Payment of Insurance Claims, etc. of Compulsory Automobile Liability Insurance and Mutual Aid Money, etc. of Compulsory Automobile Liability Mutual Aid." From the perspective of ensuring fairness and swiftness in the payment of insurance claims of automobile damage liability insurance and mutual aid money, insurance companies are required to pay such insurance claims in accordance with the criteria for payment set forth by the MLIT and the FSA. (The Criteria is under the joint jurisdiction of the MLIT and the FSA). The amendments mainly update the Criteria by reflecting the updated statutory interest rates and other factors, taking into account the current changes in socioeconomic circumstances subsequent to the enforcement of the amendments to the Civil Code and the previous amendments to the Criteria (as of April 2010). The amended regulatory notice will be enforced on April 1, 2020.
December 12, 2019 Publication of the finalized "Cabinet Office Order to Amend the Ordinance for Enforcement of the Labor Bank Act"open new window
<Summary>
The FSA finalized the "Cabinet Office Order to Amend the Ordinance for the Enforcement of the Labor Bank Act." The amendments mainly reflect requests for deregulation from the financial sector including relevant trade associations. The amended Cabinet Office Order was enforced on December 12, 2019.
December 12, 2019 Publication of the draft amendments to the "Cabinet Office Order on Disclosure of Corporate Affairs"open new window
<Summary>
The FSA proposed the draft amendments to the "Cabinet Office Order on Disclosure of Corporate Affairs."
The proposal mainly intends to expressly set forth that first-time adopters of reporting based on IFRS (International Financial Reporting Standards), who once disclosed the comparison of reporting based on JGAAP (Japanese Generally Accepted Accounting Principles) and IFRS, will no longer be required to disclose comparison reporting from the second year on.
December 12, 2019 Publication of a cabinet office order to amend the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements"open new window
<Summary>
The FSA proposed a cabinet office order to amend the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements," following the ASBJ’s publication of an accounting standard for fair value measurement (ASBJ Statement No.30) and its implementation guidance (ASBJ Guidance No.31).

Press Releases

(The following press releases are available in Japanese)

Councils

December 13, 2019 Establishment of the "Liaison Council on the Appointment of Audit Firms (External Auditors) for Initial Public Offering (IPO) Audits" (provisional English title)open new window
<Summary>
On December 13, 2019, the FSA established the "Liaison Council on the Appointment of Audit Firms (External Auditors) for Initial Public Offering (IPO) Audits" (provisional English title) to carry out liaisons and coordination with relevant stakeholders to discuss matters in regard to the appointment of audit firms (external auditors) for IPO audits. The FSA serves as the secretariat.
December 10, 2019 Publication of the agenda and handouts of the 26th meeting of the "Working Group on Financial Markets" of the Financial System Councilopen new window
<Summary>
The FSA published the agenda and handouts of the 26th meeting of the "Working Group on Financial Markets" of the Financial System Council, which was held on December 10, 2019.
December 10, 2019 Publication of the agenda and handouts of the sixth meeting of the "Working Group on Regulations for Payment Services Providers and One-Stop Financial Services Brokers" under the Financial System Councilopen new window
<Summary>
The FSA published the agenda and handouts of the sixth meeting of the "Working Group on Regulations for Payment Services Providers and One-Stop Financial Services Brokers" under the Financial System Council, which was held on December 10, 2019.

 

Banks

December 10, 2019 Report on measures for the resolution of failed financial institutionsopen new window
<Summary>
The FSA submitted to the National Diet a report on measures for the resolution of failed financial institutions (the FRC report) pursuant to the "Act on Emergency Measures for the Revitalization of the Financial Functions." The report covers developments between April 1 and September 30, 2019.

 

Securities

December 13, 2019 The first trial of an administrative penalty case against tella, Inc. which failed to disclose material corporate information in its securities reportsopen new window
<Summary>
On December 20, 2019, the first trial of an administrative penalty case against tella, Inc. which failed to disclose material corporate information in its securities reports will be conducted.
December 13, 2019 Administrative action against Mr. Hotta Katsumi (Trademaster labo), an investment advisory and agency business operator (The Kinki Local Finance Bureau)open new window
<Summary>
The Kinki Local Finance Bureau took an administrative action against Mr. Hotta Katsumi (Trademaster labo), an investment advisory and agency business operator, ordering the suspension of his business operations from December 13, 2019 to January 12, 2010 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 his 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.
December 11, 2019 Administrative action against Mr. Matusmoto Takuya, a financial instruments intermediary service provider (The Tokai Local Finance Bureau)open new window
<Summary>
The Tokai Local Finance Bureau took an administrative action against Mr. Matsumoto Takuya, a financial instruments intermediary service provider, ordering the revocation of his registration and the improvement of his business operations pursuant to the "Financial Instruments and Exchange Act." This administrative action is based on the findings from the report that Mr. Matsumoto filed in response to the FSA's order for the collection of a report pertaining to conduct of his business which was deemed materially problematic from an investor protection perspective.

 

Others

December 13, 2019 PDFWarning issued to BtcNext Company Limited that is operating the virtual currency (crypto-asset) exchange business without proper registrationopen new window
<Summary>
The FSA issued a warning to BtcNext Company Limited that is operating the virtual currency (crypto-asset) exchange business without proper registration in violation of the "Payment Services Act."
December 10, 2019 Warnings about entities that are operating money lending businesses without proper registrationopen new window
<Summary>
The FSA (Local Finance Bureaus) updated warnings about entities that are operating money lending businesses without proper registration. The warnings include the updated list of entities that misrepresent their registration using fictitious or stolen registration numbers.
December 9, 2019 Publication of the updated column titled "Candid Roundtable Talks on Dollar-Cost Averaging NISA" (provisional English title) on a subpage of the "NISA Official Promotion Webpage" with the second volume of a series of roundtable talksopen new window
<Summary>
The FSA published the updated column titled "Candid Roundtable Talks on Dollar-Cost Averaging NISA" (provisional English title) on a subpage of the "NISA Official Promotion Webpage," with the second 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.

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