Financial Services AgencyFSA Weekly Review No.386

April 2, 2020

What’s New on the FSA Website

Week of March 23, 2020 - March 27, 2020

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

Press Conferences

March 26, 2020 Press Conference by the Minister for Financial Services (March 13, 2020) Japanese versionopen new window
March 26, 2020 Press Conference by the Minister for Financial Services (March 10, 2020) Japanese versionopen new window
March 26, 2020 Press Conference by the Minister for Financial Services (March 6, 2020) Japanese versionopen new window
March 26, 2020 Press Conference by the Minister for Financial Services (March 6, 2020) Japanese versionopen new window
March 26, 2020 Press Conference by the Minister for Financial Services (March 3, 2020) Japanese versionopen new window
March 26, 2020 Press Conference by the Minister for Financial Services (February 21, 2020) Japanese versionopen new window

Public Comments

(The following public comments are available in Japanese)

March 25, 2020 Publication of the finalized "Cabinet Office Order to Amend the Ordinance for Enforcement of the Money Lending Business Act"open new window
<Summary>
The FSA has finalized the "Cabinet Office Order to Amend the Ordinance for Enforcement of the Money Lending Business Act." The amendments expressly set forth that moneylenders who are registered with the respective competent administrative authorities pursuant to the "Money Lending Business Act" may:

(1) omit the entry of their registration numbers in parentheses in the statutory documents that are to be filed with the respective competent administrative authorities where the moneylenders are registered with,
and

(2) report duplicative or closely similar submittal information that is common across the two statutory business reports* in either of those two reports.

* One is a statutory business report on the money lending business that is to be filed with the competent authorities for each business year within three months after the end of each business year, and the other is a report on a business or business materials with regard to the moneylender's business operations which is to be filed at the request of the competent administrative authorities.

The amendments were enforced on March 25, 2020.
March 24, 2020 Publication of the draft amendments to the "Order for Enforcement of the Financial Instruments and Exchange Act"open new window
<Summary>
The FSA proposed the draft amendments to the "Order for Enforcement of the Financial Instruments and Exchange Act."
In regard to certain transactions designated pursuant 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 said Order for Enforcement, which are deemed to have a minor impact on Japan's capital market, the proposal mainly intends to ensure appropriate management of such designated transactions by updating the said Order for Enforcement along with other applicable relevant laws and regulations.
March 23, 2020 Public consultation on the revisions of the respective Exposure Drafts of the Audit Standards and the Interim (Semi-annual) Audit Standardsopen new window
<Summary>
The Audit Standard Committee of the Business Accounting Council (comprised of external experts and stakeholders, and in which the FSA serves as the secretariat), has published the revisions of the respective Exposure Drafts of the Audit Standards, and has invited public comments on the revisions.
The revisions mainly intend to clarify the roles and procedures auditors should take in regard to "other information*" which is included in disclosure documents containing audited financial statements and the auditor's report thereon, and to require auditors to refer to the matter in the auditor's reports when there is a material misstatement of "other information." The revisions also intend to further enhance a risk-based approach to auditing.

* Other information in this context means financial and/or non-financial information (other than the financial statements and the auditor's report thereon).
March 23, 2020 Publication of the finalized amendments to the "Cabinet Office Order on the System for Ensuring the Adequacy of Documents on Financial Calculation and of Other Information"open new window
<Summary>
The FSA has finalized the amendments to the "Cabinet Office Order on the System for Ensuring the Adequacy of Documents on Financial Calculation and of Other Information."
Following the revision of the Audit Standards by the Business Accounting Council* in July 2018, which mainly updated the specifics of the matter paragraphs in the auditor's report pertaining to audits of corporate financial statements, the revision of the Standards for Internal Control were carried out by the said Council in December 2019, considering that an internal control audit report, which should in principle be combined with a financial statement audit report, needs to be revised accordingly. The amendments reflect the revision of the Standards for Internal Control made by the said Council. The amended Cabinet Office Order has been enforced on March 23, 2020.

* The Business Accounting Council is comprised of external experts and stakeholders, wherein the FSA serves as the secretariat.

Press Releases

(The following press releases are available in English)

International 

March 24, 2020 PDFAt BG2C [Blockchain Global Governance Conference] Special Online Panel Discussion - Keynote Speech by Commissioner ENDO Toshihide

 

Councils

March 24, 2020 Finalization of Japan’s Stewardship Code (Second revised version)

 

Others

March 27, 2020 FSA updated Information on COVID-19 (Novel Coronavirus)
March 26, 2020 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
March 24, 2020 Statement by Minister for Financial Services, on ensuring sound market function and market fairness

 


(The following press releases are available in Japanese)

Councils

March 24, 2020
March 27, 2020		 Publication of the minutes of the second meeting of the "Liaison Council on the Appointment of Audit Firms (External Auditors) for Initial Public Offering (IPO) Audits" (provisional English title)open new window and the publication of a summary report of the past meetingsopen new window
<Summary>
The FSA published the minutes of the second meeting of 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, which was held on February 14, 2020. Ｏn March 27, 2020, the FSA subsequently published a summary report and its summary chart which outline the key points of discussions in the meetings held so far since the establishment of the said Liaison Council in December 2019.
March 25, 2020 Publication of the agenda and handouts of the 28th 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 28th meeting of the "Working Group on Financial Markets" of the Financial System Council, which was held on March 25, 2020
March 23, 2020 Publication of the proceedings and handouts of the plenary meeting of the Business Accounting Council and the 47th meeting of the Audit Standard Committee of the said Councilopen new window
<Summary>
The FSA published the proceedings and handouts of the Business Accounting Council and the 47th meeting of the Audit Standard Committee of the said Council which were both held during the period from March 11 to 19, 2020.

 

Banks

March 27, 2020 PDFPublication of a reference casebook containing a collection of financial institutions' favorable response-practices taken against Coronavirus Disease 2019 (COVID-19)open new window
<Summary>
The FSA has published a reference casebook containing a collection of financial institutions' favorable response-practices to the FSA's request to the institutions to cooperate with relevant parties and deal with COVID-19-affected parties through business management consultations and new loans or changes of loan terms appropriate to the parties’ individual circumstances.
March 26, 2020 Approval granted to THE SHIGA BANK, LTD. for its engagement in trust business
<Summary>
The FSA granted approval to THE SHIGA BANK, LTD. for its engagement in trust business pursuant to the "Act on Engagement in Trust Business by a Financial Institution."
March 25, 2020 Publication of the updated Business Revitalization Plan of Shinsei Bank Limitedopen new window
<Summary>
The FSA accepted the updated Business Revitalization Plan of Shinsei Bank Limited.

 

Others

March 27, 2020 Points that need to be addressed in a securities report (FY 2020 and thereafter) and securities report review from FY 2020 onwardsopen new window
<Summary>
The FSA published points that need to be addressed in a securities report from FY 2020onwards as follows:

1)  Points related to the newly applied disclosure regulations

2)  Points related to the results of the securities report review of the prior year

Also, the FSA is to conduct securities report review for the reports submitted in FY 2020 and thereafter. The main three pillars of the review are:
  • the review on the application of the newly applied regulations;
  • the review on the implementation of key priority themes; and
  • the review by utilizing information from disclosure, media, and retail investors.
March 26, 2020 Establishment of "Enterprise System and Frontrunner Support-Hub"open new window
<Summary>
The FSA has established "Enterprise System and Frontrunner Support-Hub" for frontrunners in the financial sector who are developing innovative approaches/initiatives for enterprise systems particularly in system monitoring of IT governance and IT-related risk management. It also provides support functionality in statutory interpretation and similar areas. The Hub will offer continuous support in cooperation with other relevant authorities by forming special working teams within the FSA as necessary for each selected project.

Site Map

top of page