FSA Weekly Review No.486 April 21, 2022

FSA Weekly Review No.486: April 21, 2022

What’s New on the FSA Website

Week of April 8, 2021 - April 14, 2022

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

Public Comments

April 12, 2022	Publication of the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" for public consultation <Summary> The FSA proposed the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" for public consultation. The proposal intends to provide technical amendments to the form/format of the business report for insurance agencies prescribed in Appended Form No. 25-2 or No. 25-3 of the "Ordinance for Enforcement of the Insurance Business Act," so that the said form/format can be used as an effective inception to monitoring and can be used by insurance agencies for development of a self-sustaining corporate structure. The proposal also intends to reflect the above in the said comprehensive guidelines. Public comments will be accepted until 05:00 p.m. (JST), May 12, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r3/hoken/20220412/20220412.html

April 12, 2022

Publication of the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" for public consultation
<Summary>
The FSA proposed the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Insurance Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" for public consultation.
The proposal intends to provide technical amendments to the form/format of the business report for insurance agencies prescribed in Appended Form No. 25-2 or No. 25-3 of the "Ordinance for Enforcement of the Insurance Business Act," so that the said form/format can be used as an effective inception to monitoring and can be used by insurance agencies for development of a self-sustaining corporate structure. The proposal also intends to reflect the above in the said comprehensive guidelines.
Public comments will be accepted until 05:00 p.m. (JST), May 12, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/hoken/20220412/20220412.html open new window

Press Releases

International

April 12, 2022	Updated : International Financial Center Website

Publication

April 14, 2022	FSA publishes English translation of monthly magazine, Access FSA No.221

Councils

April 13, 2022	Publication of the agenda and handouts of the second meeting of the "Sub-Working Group on Impact Indicators for Social Projects" (provisional English title), comprising representatives from the Cabinet Office and relevant ministries and agencies <Summary> The FSA published the agenda and handouts of the second meeting of the "Sub-Working Group* on Impact Indicators for Social Projects" (provisional English title), comprising representatives from the Cabinet Office and relevant ministries and agencies, which was held on April 12, 2022. The secretariat (i.e. the FSA and the Office of Assistant Chief Cabinet Secretary) of the sub-working group presented a draft report entitled "Examples of (Impact) Indicators for Social Benefits of Social Projects" (provisional English title), which was prepared based on the results of an outsourced survey** on impact indicators (particularly those in regard to social benefits) for social bonds, as well as discussions with the Cabinet Office and relevant ministries and agencies, whereby the sub-working group participants endorsed the draft report to be discussed by the "Working Group on Social Bonds". * Establishment of the sub-working group under the "Working Group on Social Bonds" (provisional English title) was announced on December 14, 2021. The survey was outsourced to Mitsubishi UFJ Research and Consulting Co., Ltd. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/social_impact/siryou/20220412.html
April 8, 2022	The eighth meeting of the Working Group on Corporate Disclosure of the Financial System Council

April 13, 2022

Publication of the agenda and handouts of the second meeting of the "Sub-Working Group on Impact Indicators for Social Projects" (provisional English title), comprising representatives from the Cabinet Office and relevant ministries and agencies
<Summary>
The FSA published the agenda and handouts of the second meeting of the "Sub-Working Group* on Impact Indicators for Social Projects" (provisional English title), comprising representatives from the Cabinet Office and relevant ministries and agencies, which was held on April 12, 2022.
The secretariat (i.e. the FSA and the Office of Assistant Chief Cabinet Secretary) of the sub-working group presented a draft report entitled "Examples of (Impact) Indicators for Social Benefits of Social Projects" (provisional English title), which was prepared based on the results of an outsourced survey** on impact indicators (particularly those in regard to social benefits) for social bonds, as well as discussions with the Cabinet Office and relevant ministries and agencies, whereby the sub-working group participants endorsed the draft report to be discussed by the "Working Group on Social Bonds".

* Establishment of the sub-working group under the "Working Group on Social Bonds"** (provisional English title) was announced on December 14, 2021.

** The survey was outsourced to Mitsubishi UFJ Research and Consulting Co., Ltd.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/social_impact/siryou/20220412.html open new window

April 8, 2022

The eighth meeting of the Working Group on Corporate Disclosure of the Financial System Council

Banks

April 11, 2022	Publication of the updated "Q&As for the 'Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises'" (provisional English title) <Summary> The FSA published the updated "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 updates mainly reflect responses from the National Tax Agency to inquiries* by the said study group in regard to the said guidelines. The updated Q&As are available only in Japanese at the webpage of Japanese Bankers Association: https://www.zenginkyo.or.jp/news/2022/n040802/ * The inquiries mainly pertain to tax treatments for cases involving debt waivers and so forth under corporate revitalization plans or debt repayment plans prepared based on the said guidelines. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r3/ginkou/20220411.html

April 11, 2022

Publication of the updated "Q&As for the 'Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises'" (provisional English title)
<Summary>
The FSA published the updated "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 updates mainly reflect responses from the National Tax Agency to inquiries* by the said study group in regard to the said guidelines. The updated 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 inquiries mainly pertain to tax treatments for cases involving debt waivers and so forth under corporate revitalization plans or debt repayment plans prepared based on the said guidelines.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/ginkou/20220411.html open new window

Securities

April 13, 2022	Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2021) <Summary> The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2021, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r3/shouken/20220413/20220413.html
April 12, 2022	Administrative action against AMI Corporation <Summary> The Kanto Local Finance Bureau took administrative action* against AMI Corporation, a business operator that engages in investment advisory and agency business, ordering the revocation of the entity’s registration and the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act" (FIEA). * This administrative action is based on a recommendation from the SESC (Securities and Exchange Surveillance Commission) as a result of its on-site inspection, where certain business conduct by AMI Corporation was found to violate the FIEA. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r3/shouken/20220412.html

April 13, 2022

Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2021)
<Summary>
The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2021, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220413/20220413.html open new window

April 12, 2022

Administrative action against AMI Corporation
<Summary>
The Kanto Local Finance Bureau took administrative action* against AMI Corporation, a business operator that engages in investment advisory and agency business, ordering the revocation of the entity’s registration and the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act" (FIEA).

* This administrative action is based on a recommendation from the SESC (Securities and Exchange Surveillance Commission) as a result of its on-site inspection, where certain business conduct by AMI Corporation was found to violate the FIEA.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220412.html open new window

Others

April 14, 2022	Sixteenth Meeting of the "Council for Cooperation on Financial Stability"
April 14, 2022	Outline of the "Report on the Measures for the Resolution of Failed Financial Institutions" delivered by the Minister of State for Financial Services, SUZUKI Shunichi, in the Committee on Financial Affairs of the House of Councillors <Summary> The Minister of State for Financial Services, SUZUKI Shunichi, delivered an outline of the "Report on the Measures for the Resolution of Failed Financial Institutions" in the Committee on Financial Affairs of the House of Councillors. The report, addressing the semiannual period extending from October 1, 2019 to March 31, 2020, had been submitted to the Diet on June 29, 2020, pursuant to the "Act on Emergency Measures for the Revitalization of the Financial Functions." The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/diet/houkoku/040414/20220414.html
April 13, 2022	Publication of the main issues raised by the FSA at opinion exchange meetings with the relevant associations in the financial sector <Summary> The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with the relevant associations in the financial sector in March 2022. (Available only in Japanese). Common topics across the groups except one group (Foreign Non-Life Insurance Association of Japan) were: - Responses to take in light of the current global geopolitical and socioeconomic situations surrounding Ukraine - Request sent to members (financial institutions) to promote measures to prevent damage to financial services users from tax refund fraud and to establish a cooperative system with the competent prefectural police in charge of the investigation of tax refund fraud - Measures for AML/CFT [Anti-Money Laundering and Combating the Financing of Terrorism] - Domestic implementation of the finalized Basel III framework, and - Publication of a report on "Enhancement of Banks' Disclosures for Allowances for Credit Losses" (provisional English title) Main topics discussed at the opinion exchange meeting with the Foreign Non-Life Insurance Association of Japan were: - Business models based on mid- to long-term changes in the business environment - Sustainable finance-related topics, and - New prudential policies for insurance companies * To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, the FSA publishes every month the main issues raised by the FSA at opinion exchange meetings with the relevant associations in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis. In March 2022, opinion exchange meetings were held respectively with four groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; Community Bank Shinyo Kumiai; and Foreign Non-Life Insurance Association of Japan. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/ronten/index.html
April 13, 2022	Publication of an outsourced survey report aimed at gaining an overview of frameworks/schemes for data collection and sharing information conducted by foreign financial regulators, as part of basic research for the establishment of a joint data platform between the FSA and the Bank of Japan <Summary> The FSA has published the results of an outsourced survey report,* aimed at gaining an overview of frameworks/schemes for data collection and sharing information conducted by foreign financial regulators, as part of basic research for the establishment of a joint data platform** between the FSA and the Bank of Japan (BOJ). The survey was outsourced to KPMG AZSA LLC. * The survey report is available only in Japanese. ** The FSA and the BOJ cooperates for the establishment of a joint data platform aimed at further improving the efficiency of data collection and bilateral information sharing as well as sophistication in monitoring. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/about/research/20220413/20220413.html
April 13, 2022	Stewardship Code : 323 institutional investors have signed up to the Principles for Responsible Institutional Investors as of March 31, 2022
April 12, 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.html
April 8, 2022	Publication of a report on the current status and challenges regarding anti-money laundering, counter financing of terrorism, and counter proliferation financing in Japan (March 2022) <Summary> The FSA has published a report on the current status and challenges regarding anti-money laundering, counter financing of terrorism, and counter proliferation financing (hereinafter referred to as "AML/CFT/CPF") in Japan (March 2022). The report summarizes the status and progresses of financial institutions’ AML/CFT/CPF regimes and the FSA's AML/CFT/CPF policies as of March 31, 2022. Taking into account recommendations prescribed in the "Fourth Round Mutual Evaluation Report of Japan" published by the FATF (Financial Action Task Force) in August 2021, the FSA believes it is important to cooperate with the private sector to enhance AML/CFT/CPF actions and to build a sound financial system that will not be abused for money laundering. The FSA hopes the report will help financial institutions enhance their AML/CFT/CPF measures by referring to the FSA’s view and issues identified through its supervisory work prescribed therein. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r3/20220408/20220408.html
April 8, 2022	Publication of an outsourced survey report regarding the U.S. financial institutions' lending and business turnaround practices (to support corporate borrowers' business enhancement), using blanket-type security interests <Summary> The FSA has published the results of an outsourced survey report* regarding the U.S. financial institutions' lending and business turnaround practices (to support corporate borrowers' business enhancement), using blanket-type security interest, and their organizational structure and human resources management that support such practices. The survey was outsourced to Nomura Research Institute, Ltd. *The survey report is available only in Japanese. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/about/research/20220408/20220408.html

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