Financial Services AgencyFSA Weekly Review No.482

March 25, 2022

What’s New on the FSA Website

Week of March 11, 2022 - March 17, 2022

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

Public Comments

March 15, 2022 Publication of the finalized amendments to the FSA's regulatory notice concerning the "designated IFRSs" after public consultation
<Summary>
The FSA finalized the amendments to the regulatory notice concerning the "designated IFRSs" stipulated in the "Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements" after public consultation. The amendments define the international accounting standards that have been published through December 31, 2021, by the IASB (International Accounting Standards Board) as "designated international accounting standards" set forth under Article 93 of the Regulation on Consolidated Financial Statements.
The amendments took effect on March 15, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220315.htmlopen new window

Press Releases

International 

March 17, 2022 Updated : International Financial Center Website
March 14, 2022 The third Meeting of the EU-Japan Joint Financial Regulatory Forum (March 10 and 11, 2022) 

 

Banks

March 17, 2022 Requests for financial measures to deal with disasters caused by the earthquake offshore Fukushima Prefecture [in 2022] (The Tohoku Local Finance Bureau) 
<Summary>
The Fukushima Local Branch Bureau of the Tohoku Local Finance Bureau alongside the Bank of Japan’s Fukushima Branch, and the Tohoku Local Finance Bureau alongside the Bank of Japan's Sendai Branch, issued statements titled "Financial Measures to Deal with Disasters Caused by the Earthquake Offshore Fukushima Prefecture [in 2022]" to the relevant financial institutions. The statements request financial institutions in Fukushima and Miyagi prefectures to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/ginkou/20220317.htmlopen new window
March 14, 2022 Approval of the business adaptation plan for The Chiba Bank, Ltd.
<Summary>
The FSA approved and published the business adaptation plan for The Chiba Bank, Ltd., based on the "Industrial Competitiveness Enhancement Act."

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/ginkou/20220314/20220314.htmlopen new window

 

Securities

March 11, 2022 Administrative penalty charge against an individual for committing insider trading regarding stocks of Mitsui DM Sugar Holdings Co., Ltd. by using insider information learned as an officer of the contract negotiator with Mitsui DM Sugar Holdings Co., Ltd.
<Summary>
On March 10, 2022, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of Mitsui DM Sugar Holdings Co., Ltd. by using information learned as an officer of the contract negotiator with Mitsui DM Sugar Holdings Co., Ltd., 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/20220311-1.htmlopen new window
March 11, 2022 Administrative penalty charge against an individual (retail investor) for market manipulation regarding stocks of MITSUBA Corporation
<Summary>
On March 10, 2022, the FSA issued an order to impose an administrative penalty charge against an individual (retail investor) for market manipulation regarding stocks of MITSUBA 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/20220311-2.htmlopen new window
March 11, 2022 Administrative penalty charge against an individual (a non-insider/retail investor) for commiting insider trading regarding stocks of LEOPALACE21 CORPORATION by using insider information received from an employee of the entity
<Summary>
On March 10, 2022, the FSA issued an order to impose an administrative penalty charge against an individual (a non-insider/retail investor) for committing insider trading regarding stocks of LEOPALACE21 CORPORATION by using information received from an employee of the entity, 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/20220311-3.htmlopen new window



Insurance

March 11, 2022 The FSA's new web portal site explaining the public insurance system (from the perspective of its relationship with the private insurance system)
<Summary>
 The FSA launched a new web portal site explaining the public insurance system (from the perspective of its relationship with the private insurance system).
When purchasing private insurance to cover various risks, it is important for each individual to understand the coverage of public insurance and to purchase private insurance according to one's needs, taking into account the purpose of private insurance as a supplement to public insurance. The portal site is aimed at enhancing the people's understanding of the public insurance system by providing clear and concise explanations of its benefits.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/hoken/20220311.htmlopen new window    

 

Others

March 17, 2022 Publication of teaching materials for financial and economic education (financial literacy classes) at high schools
<Summary>
With the lowering of the age of majority in April 2022, 18-year-olds (new adults) will be able to sign various financial agreements on their own, including those for credit cards, which means that financial and economic education (financial literacy) is becoming increasingly important for them.
While the content of financial and economic education (financial literacy) will be enhanced in accordance with the updated curriculum guidelines (courses of study) for high schools effective from April 2022, the FSA published teaching materials for financial literacy classes that were prepared in line with the updated high curriculum guidelines, based on valuable insights from high school teachers and other stakeholders.*
The teaching materials are expected to be used in actual classes and in preparation for teachers as well as for learning by the general public.
 

* "The Advisory Board for Financial and Economic Education in High School Home Economics Classes" (provisional English title) has provided editorial supervision for the creation of teaching materials.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220317/20220317.htmlopen new window
March 14, 2022 Warnings about entities that are operating money lending businesses without proper registration
<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.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/ordinary/chuui/index.htmlopen new window
March 14, 2022 Request statement to crypto-asset (virtual currency) exchange service providers to take appropriate response in light of the current global geopolitical and socioeconomic situations surrounding Ukraine
<Summary>
In light of the current international geopolitical situations surrounding Ukraine, Japan has implemented economic sanctions against Russia pursuant to the "Foreign Exchange and Foreign Trade Act" (hereinafter referred to as the "Act"), imposing, among other things, the obligation to obtain permission from the Minister of Finance (the "MOF") for those who intend to make "payments (including bank transfers as well as crypto-asset transfers)" to sanctioned parties.

In this regard, the FSA and the MOF has requested crypto-asset (virtual currency) exchange service providers (hereinafter referred to as "exchange service providers") to take the following measures from the perspective of ensuring proper and secure conduct of crypto-asset exchange service:

(1) To refuse to transfer crypto-assets when the address of the recipient of crypto-assets designated by a customer is considered to be the address of a person/party subject to asset-freeze measures etc., the exchange service provider shall NOT execute the transfer of the crypto-assets, given that the customer has an obligation to obtain a prior permission or approval from the authorities for the payment pursuant to the Act. In this context, if it is reasonably suspected that the address of the recipient designated by the customer is the address of a person/party subject to asset-freeze measures etc., the exchange service provider shall NOT execute the transfer of the crypto-assets unless it is confirmed that the recipient's address is not the address of a person/party subject to asset-freeze measures etc..

(2) When crypto-assets are transferred at the request of a customer and it turns out that the recipient of the transferred assets is a person/party subject to asset-freeze measures etc., the exchange service provider shall promptly report the transfer to the FSA, the MOF, and other competent authorities.

(3) Exchange service providers shall enhance monitoring of transactions involving crypto-assets in order to increase the effectiveness of the measures set out in (1) and (2) above.

Note: Any person who has made a payment, etc. in violation of prohibition of payments, etc. pursuant to the provision of Article 16-2 in the Act, or without obtaining permission pursuant to the provisions of an order pursuant to the said article shall be punished by imprisonment with work for not more than three years or a fine of not more than one million yen, or both; provided that three times the price of the subject matter of the violation exceeds one million yen, a fine shall be not more than three times the price.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220314.htmlopen new window
March 11, 2022 Publication of the agenda and handouts of the second meeting of the "Technical Committee for ESG Rating and Data Providers, etc."
<Summary>
The FSA published the agenda and handouts of the second meeting of the "Technical Committee for ESG Rating and Data Providers, etc.,"* which was held on March 3, 2022.
Following a hearing from the respective corporate participants on how they provide their services (ESG rating and data provision), the meeting participants discussed what points would be important to consider for discussions regarding the code of conduct.
 

* This Technical Committee has been established under the "Expert Panel on Sustainable Finance" to aggregate a wide range of information on green bonds, etc., as well as ESG (Environmental Social and Governance) rating and data providers. The Committee is composed of practitioners, market participants, and academics who are involved in ESG assessment and data provision, with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/esg_hyouka/siryou/20220303.htmlopen new window
March 11, 2022 Joint announcement with the NICT (National Institute of Information and Communications Technology) pertaining to a research (commissioned to the NICT by the FSA) on building an automated translation engine designed for the use in the financial sector
<Summary>
The FSA and the NICT (National Institute of Information and Communications Technology) jointly announced the completion of building a Japanese-English bilingual AI translation system with significantly improved translation accuracy, in tandem with the publication of the PDFresearch report (press release) [available only in Japanese].
The development of an AI translation system designed for the use in the financial sector was commissioned to the NICT by the FSA, in which the financial-related bilingual (Japanese-English) data collected by the FSA (from the FSA internally, financial associations, private financial institutions, and others in the financial sector) attributed to the significant improvement* of the translation accuracy of the AI translation system.
Through the use of the translation system, the FSA expects to enhance publicizing and communicating in English. Moreover, it is also expected that the research results will be shared not only within the FSA but also widely across the financial sector and beyond, following the NICT's technology-transfer to the private sector, which started on March 1, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220311/20220311.htmlopen new window

 

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