Financial Services AgencyFSA Weekly Review No.485

April 14, 2022

What’s New on the FSA Website

Week of April 1, 2022 - April 7, 2022

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

Public Comments

April 1, 2022 Publication of the draft "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc." for public consultation
<Summary>
The FSA published the draft "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc." for public consultation in regard to eligibility requirements for an individual investor to be treated as a professional investor.
Under the "Financial Instruments and Exchange Act" (hereinafter referred to as the "FIEA"), transactions by a financial instruments business operator (hereinafter referred to as a "FIBO"), etc. with professional investors are exempt from application of certain conduct rules/regulations, including the obligation to deliver documents prior to the conclusion of a contract and compliance with the principle of suitability. Additionally, the FIEA provides the framework of private placements of securities to professional investors.
An individual investor who meets certain eligibility requirements may make a request to a FIBO for treatment as a professional investor, and upon approval by the FIBO, may be treated as a professional investor only with the said FIBO.
While the current eligibility requirements only take into account the investor's net assets, financial assets, and transaction experience, the proposal intends to broaden the scope of eligibility by adding optional requirements that take into account any of the investor's annual income, vocational experiences, professional certifications, and transaction frequency.
Public comments will be accepted until 5:00 p.m. (JST), May 1, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220401/20220401.htmlopen new window
April 1, 2022 Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision for Insurance Companies [Separate Volume] (Supervisory Guidelines for Small-Claims and Short-Term Insurance Businesses Operators)" after public consultation
<Summary>
The FSA has published the finalized amendments (hereinafter referred to as the "amendments") to the "Comprehensive Guidelines for Supervision for Insurance Companies [Separate Volume] (Supervisory Guidelines for Small-Claims and Short-Term Insurance Businesses Operators)" after public consultation.
The PDFamendments (old and new comparison chart is available only in Japanese) mainly simplify administrative proceedings within the Local Finance Bureaus. The amendments took effect on April 1, 2022.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/hoken/20220401/20220401.htmlopen new window
April 1, 2022 Publication of the updated "Standards to Set Respective Paragraphs under Article 9 of the Act on Access to Information Held by Administrative Organs"
<Summary>
The FSA published the updated "Standards to Set Respective Paragraphs under Article 9 of the Act on Access to Information Held by Administrative Organs" (provisional English title). The updates mainly pertain to technical amendments, and no public consultation was conducted, for the updates fall under cases prescribed in the "Administrative Procedures Act" as being insignificantly changed and not requiring the implementation of procedures for public consultation, such as the arrangement of the provisions necessary in accordance with the establishment, amendment or repeal of other laws and regulations.
The updated Standards were enforced on April 1, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220401/220401-2.htmlopen new window
April 1, 2022 Publication of the updated "Review Standards for Dispositions to be Imposed Pursuant to the Act on the Protection of Personal Information Held by Administrative Organs"
<Summary>
The FSA updated the "Review Standards for Dispositions to be Imposed Pursuant to the Act on the Protection of Personal Information Held by Administrative Organs," and renamed it "Review Standards for Dispositions to be Imposed Pursuant to the Act on the Protection of Personal Information" (provisional English title).
The updates mainly pertain to technical amendments, and no public consultation was conducted, for the updates fall under cases prescribed in the "Administrative Procedures Act" as being insignificantly changed and not requiring the implementation of procedures for public consultation, such as the arrangement of the provisions necessary in accordance with the establishment, amendment or repeal of other laws and regulations.
The updated Review Standards were enforced on April 1, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220401/220401.htmlopen new window

Press Releases

International 

April 5, 2022 EU-Asia Pacific Forum on Financial Regulation

 

Councils

April 7, 2022 Publication of the agenda and handouts of the fourth meeting of the "Technical Committee for ESG Rating and Data Providers, etc."
<Summary>
The FSA published the agenda and handouts of the fourth meeting of the "Technical Committee for ESG Rating and Data Providers, etc.,"* which was held on March 24, 2022.
The committee conducted a hearing from one professional investor and four ESG rating and data providers pertaining to favorable practices based on the code of conduct, as well as to the roles of investors and companies.
 

* 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, along 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/20220324.htmlopen new window

 

Banks

April 1, 2022 Publication of the Q&As for the "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises" (provisional English title)
<Summary>
The FSA published the Q&As for the "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises" (provisional English title) compiled by the study group on the said guidelines. The Q&As summarize the key points to be considered when implementing specific practices in line with the guidelines. The Q&As are available only in Japanese at the webpage of Japanese Bankers Association: 
https://www.zenginkyo.or.jp/news/2022/n040802/open new window

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/ginkou/20220401.htmlopen new window
April 1, 2022 Call for participants from financial institutions in a renewed business-support know-how-sharing web portal site
<Summary>
The FSA renewed the business-support know-how sharing web portal site, which has been active since its launch in 2021 for employees of financial institutions to support the improvement of business competencies of financial professional human resources in regions.
The renewed web portal site is equipped with enhanced social networking functions, whereby the FSA has called for participation in the renewed web portal site for employees of financial institutions by expanding the scope of eligible financial institutions for participation.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/ginkou/20220401/20220401.htmlopen new window

 

Others

April 5, 2022 International Forum of Independent Audit Regulators published the Report on 2021 Survey of Inspection Findings
April 4, 2022 Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’ 
April 1, 2022 Updated fill-in requirements of the designated reporting format pertaining to the status of implementation of initiatives and efforts that have been taken so far and are to be taken by financial institutions, based on the "Principles for Customer-Oriented Business Conduct"
<Summary>
The FSA updated the fill-in requirements of the designated reporting format pertaining to the status of initiatives and efforts that have been taken so far and are to be taken by financial institutions, based on the "Principles for Customer-Oriented Business Conduct" [hereinafter referred to as the "principles"].
The updated fill-in requirements add the following two items in addition to the existing item, "Conformity between the principles and the corporate policy for initiatives and efforts that have been taken so far and are to be taken based on the principles":

- Publication of the status of implementation of corporate initiatives and efforts based on the principles, and

- Conformity between the principles and the status of implementation of corporate initiatives and efforts based on the principles. 


Based on the above, the corresponding updates including the newly added points of attention were provided to the Q&As on matters to be filled in the designated reporting formats, and those on the publication of the list of financial institutions satisfying certain fill-in requirements of the designated reporting based on the said principles.
 
[Note]: The FSA has been publicizing since 2021 the list of financial institutions satisfying the certain fill-in requirements. The list based on the updated fill-in requirements will be published in due course. The FSA aims at encouraging financial institutions to further visualize their customer-oriented business conduct by requesting them to meet the fill-in requirements of the format to report their initiatives and efforts based on the Principles.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/kokyakuhoni/202204/fd_2021.htmlopen new window
April 1, 2022 The FSA's initiatives for the reduction of food loss as well as food donation through the effective use of a portion of the government's emergency food reserves
<Summary>
From the perspective of reducing food loss and supporting people in need, the FSA has been engaging in food donation to food bank (hunger-relief) organizations and other outreach groups since August 2021, by making effective use of a portion of food reserves (mainly non-perishable foods, such as canned goods) that are originally kept for disaster-relief/emergency by the government.
The FSA has called for applications for its fourth offering of a portion of its emergency food reserves subsequent to the third offering made in March 2022. (The offering is for residents in Japan).

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/choutatu/choutatu_j/choutatsu_saigaisyokuhin.htmlopen new window

 

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