Financial Services AgencyFSA Weekly Review No.480

March 10, 2022

What’s New on the FSA Website

Week of February 25, 2022 - March 3, 2022

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

Public Comments

February 25, 2022 Publication of the finalized "Cabinet Office Order to Amend the Ordinance for Enforcement of the Shinkin Bank Act, etc." after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Ordinance for Enforcement of the Shinkin Bank Act, etc." after public consultation.
In accordance with the amendments made to the Auditing Standards on November 6, 2020, the finalized Cabinet Officer Order expressly sets forth that a financial auditor shall include in the financial audit report as to whether or not there are any matters to be reported regarding material differences between the contents of the business report and the contents of the financial statements or the knowledge obtained by the financial auditor in the course of the audit, and if there are any significant matters to be reported, the nature of the details thereof.*
The finalized Cabinet Office Order was enforced on February 25, 2022.

* This shall not apply when the financial auditor does not express an opinion on the financial statements.


(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/kyokin/20220225/20220225.htmlopen new window

Press Releases

International 

March 1, 2022 Updated : International Financial Center Website

 

Banks

March 1, 2022 Publication of a report summarizing results of discussions in "Study Group on the Enhancement of Banks' Disclosures for Allowances for Credit Losses" (provisional English title).
<Summary>
The FSA published the report summarizing results of discussions in "Study Group on the Enhancement of Banks' Disclosures for Allowances for Credit Losses" (provisional English title). The report is based on meetings held by the study group, which is composed of securities analysts and representatives from the Japanese Institute of Certified Public Accountants and from Japanese Bankers Association, to discuss ways to enhance disclosures for allowances for credit losses in banking. The FSA expects that the report may serve as a useful reference for banks in enhancing their disclosures in terms of allowance methods depending on their respective circumstances.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/singi/20220301.htmlopen new window
March 1, 2022 Publication of the implementation report of the Business Strengthening Plans (as of September 2021)
<Summary>
The FSA published the implementation report of the Business Strengthening Plans (as of September 2021) pursuant to the "Act on Special Measures for Strengthening Financial Functions."

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/ginkou/20220301/20220301.htmlopen new window
February 28, 2022 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 March 10, 2020 to January 31, 2022.

* The majority of the data reflects the data until January 31, 2022, whereas the data of cooperative financial institutions reflects the data until December 31, 2021.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.htmlopen new window
February 28, 2022 The FSA publishes the status of loans held by all banks as of the end of September 2021, based on the Financial Reconstruction Act
February 25, 2022 Request for the facilitation of financing for corporate borrowers in light of socioeconomic circumstances against the backdrop of the situation in Ukraine and rising crude oil prices 
<Summary>
Against the backdrop of the heightened socioeconomic uncertainty due to the situation in Ukraine in addition to rising crude oil prices, businesses can be possibly facing difficult cash flow conditions with tight borrowing constraints. In response to such circumstances, the FSA has requested the relevant financial associations and institutions in the public and the private sectors to continue to facilitate financing for corporate borrowers, by providing an attentive and swift response to the needs of the respective business entities, so that they will not have to face serious liquidity constraints.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/ginkou/20220225.htmlopen new window

 

Securities

February 25, 2022 Administrative penalty charge against an individual (retail investor) for market manipulation regarding stocks of GNI Group Ltd. and FANUC CORPORATION
<Summary>
On February 24, 2022, the FSA issued an order to impose an administrative penalty charge against an individual (retail investor) for market manipulation regarding stocks of GNI Group Ltd. and FANUC CORPORATION in violation of the "Financial Instruments and Exchange Act."

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/shouken/20220224.htmlopen new window

 

Others

March 3, 2022 Publication of a series of commentary (tutorial) videos featuring a famous "yuru-kyara," i.e. a cute-fun cartoon mascot from the "Unko Drill" series, to warn new adults against potential risks in regard to over-borrowing from money lenders and to falling victim to illegal usury practices conducted by illegal loan sharks
<Summary>
The FSA published a series of commentary (tutorial) videos (available on YouTubeopen new window) featuring a famous "yuru-kyara," i.e. a cute-fun cartoon mascot from the "Unko Drill" series,* to warn new adults against potential risks in regard to over-borrowing from money lenders and to falling victim to illegal usury practices conducted by illegal loan sharks.
This information is accessible from the subpage of the FSA's website that provides one-stop access to information in regard to the lowering of the age of majority [adulthood] (including useful information to improve financial literacy, particularly for new adults).

* "Unko Drill" series (meaning "Poop Workbook" series featuring a famous "Yuru-kyara" i.e., a cute-fun cartoon mascot, based on poop motifs) are published by Bunkyosha Co., Ltd.


(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/ordinary/chuui/seinen.html#dougaopen new window
March 2, 2022 Symposium to improve financial literacy for high school students and teachers
<Summary>
The FSA announced that the Kinki Local Finance Bureau will hold a symposium on financial and economic education, and on consumer education for high school students and teachers on March 28, 2022. The symposium is aimed at further improving the financial literacy of participants through hands-on experiential group work activities and lectures by experts. Those who wish to join are requested to sign up by Monday, March 21, 2022.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/sonota/20220302/20220302.htmlopen new window
March 1, 2022 Submission of a bill to partially amend the "Certified Public Accountants Act" and the "Financial Instruments and Exchange Act" to the 208th ordinary Diet session
<Summary>
The FSA submitted to the 208th ordinary Diet session a bill to partially amend the "Certified Public Accountants Act" and the "Financial Instruments and Exchange Act." The bill is aimed at ensuring confidence in audit and further improving the capacity and capabilities of certified public accountants (CPAs) in light of changes in socioeconomic circumstances.
The bill is mainly aimed at:
- introducing a registration system for audits of listed companies, etc., and
- modifying audit independence rules in regard to the spousal relationship of a Partner in audit firms.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/common/diet/index.html#diet208open new window
March 1, 2022 Warning with respect to the recent developments that call for enhancements to cybersecurity measures at financial institutions
<Summary>
The FSA issued a warning to financial institutions via their industry associations to call for enhancements of cybersecurity measures against the increasing potential risk of cyber-attacks. In the warning, the FSA urges financial institutions to implement appropriate security measures to be able to control risks with a view of the entire supply chain including their business partners. In addition, the FSA requests financial institutions to promptly report to the FSA and/or the Local Finance Bureaus in the event of a cyber-attack.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/cyber/0301oshirase.htmlopen new window
February 28, 2022 Publication of an ex-ante evaluation report on  measures to ensure confidence in audit and to further improve the capacity and capabilities of the certified public accountants in regard to the bill to partially amend the "Certified Public Accountants Act" and the "Financial Instruments and Exchange Act," based on the regulatory impact analysis (RIA)
<Summary>
The FSA has published an ex-ante evaluation report on  measures to ensure confidence in audit and to further improve the capacity and capabilities of the certified public accountants in regard to the bill to partially amend the "Certified Public Accountants Act" and the "Financial Instruments and Exchange Act," based on Regulatory Impact Analysis (RIA).*
The evaluation report is a set of three documents, namely, a PDFregulatory ex-ante assessment report (summary); a PDFpreliminary regulatory assessment report, and a PDFcompetition assessment checklist. (Available only in Japanese).
 

*RIA is a methodology aimed at improving the objectivity and transparency of regulations by objectively analyzing the impact of the introduction or revision of regulations in respect of the expected implementation costs and effects, etc., and by disclosing the results. In this regard, competition assessment estimates and evaluates the impact on the competitive status based on the benefits and burdens incurred by the establishment, revision or abolition of a regulation.


(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/seisaku/r3ria.htmlopen new window
February 28, 2022 Updated statistics of money lending business
February 25, 2022 FSA updated Information on COVID-19 (Novel Coronavirus) 
February 25, 2022 Warning issued to VANLANCLE that is operating crypto-asset (virtual currency) exchange business without proper registration
<Summary>
Based on the "Guidelines for Administrative Processes," the FSA issued a PDFwarning to VANLANCLE* that is operating crypto-asset (virtual currency) exchange business without proper registration in violation of the "Payment Services Act."
* This warning is available only in Japanese.

(The original press release is available in Japanese at the following URL.)
PDFhttps://www.fsa.go.jp/policy/virtual_currency02/Vanlancle_keikokushiryo.pdfopen new window
February 25, 2022 Publication of "Statistics of NISA and Junior NISA Accounts" as of December 31, 2021 (preliminary figures)
<Summary>
The FSA has published "Statistics of NISA and Junior NISA Accounts" (preliminary figures). As of December 31, 2021, there were approximately 17.7 million NISA accounts in total, and approximately 26.4 trillion yen (approximately 228.9 billion USD) was invested through the NISA accounts, among which,1.6 trillion yen (approximately 13.6 billion USD) was invested through approximately 5.2 million accounts of the Tsumitate NISA (Dollar-Cost Averaging NISA) which has started since January 2018.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/policy/nisa/20220225.htmlopen new window
February 25, 2022 Activities of the FSA's Counseling Office for Financial Services Users for the period between October 1 and December 31, 2021
<Summary>
The FSA's Counseling Office for Financial Services Users offers a counseling service to respond to inquiries and comments from financial services users. Between October 1 and December 31, 2021, the counseling office received 10,875 inquiries and comments, a slight increase from 10,154 cases in the previous quarter (between July 1 and September 30, 2021).

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/soudan/2021soudan10-12/2021_10-12.htmlopen new window
February 25, 2022 Announcement pertaining to FY2021 commendations for contribution to the dissemination and advancement of financial literacy in Japan
<Summary>
The FSA and the BOJ (Bank of Japan) announced that they have decided to commend 14 individuals and two organizations for their contribution to the dissemination and advancement of financial literacy among the public in Japan as of FY 2021.
In light of further promoting activities to advance the nation's literacy on finance and its underlying economy, yearly commendations are given to individuals and organizations* that have taken good practices in contributing to the dissemination and advancement of financial literacy among the public in Japan.
* PDFThe list of awardeesopen new window is available only in Japanese.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/sonota/20220225/20220225.htmlopen new window

 

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