Financial Services AgencyFSA Weekly Review No.487

April 28, 2022

What’s New on the FSA Website

Week of April 15, 2022 - April 21, 2022

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

Public Comments

April 18, 2022 Publication of the finalized amendments to the regulatory notice designating the rules of Financial Instruments Firms Associations based on the provision of Article 142, paragraph (1) of the "Cabinet Office Order on Financial Instruments Business, etc.," after public consultation
<Summary>
The FSA has finalized the amendments to the regulatory notice designating the rules of Financial Instruments Firms Associations based on the provision of Article 142, paragraph (1) of the "Cabinet Office Order on Financial Instruments Business, etc.," after public consultation.
The amendments mainly add the self-regulatory rules set forth by Japan Security Token Offering Association to the rules of Financial Instruments Firms Associations designated by the FSA.
The amendments were enforced on April 18, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220418/20220418.htmlopen new window
April 15, 2022 Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Financial Market Infrastructures - Clearing Organizations, Fund Clearing Organizations, Book-entry Transfer Institutions, and Trade Repositories" for public consultation
<Summary>
The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Financial Market Infrastructures - Clearing Organizations, Fund Clearing Organizations, Book-entry Transfer Institutions, and Trade Repositories" for public consultation.
Based on recent discussions in Japan and abroad, the proposal intends to provide amendments to the said guidelines, by clarifying the supervisory focal points on the appropriate reflection of stakeholders' opinions in the decision-making process and the formulation of restructuring plans by clearing organizations and so forth. Public comments will be accepted until 5:00 p.m. (JST), May 15, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220415/20220415.htmlopen new window

Press Releases

Councils

April 15, 2022 Publication of the agenda and handouts of the eighth meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the eighth meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council, which was held on April 18, 2022. The working group secretariat (i.e. the FSA) gave a briefing on a set of topics, namely, frequency and timing of disclosure, disclosure in English, and the relationship between the information to be included in annual securities reports and corporate governance reports, followed by a discussion.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/singi_kinyu/disclose_wg/siryou/20220418.htmlopen new window

 

Banks

April 15, 2022 Publication of a Business Strengthening Plan filed by Procrea Holdings, Inc. and The Michinoku Bank, Ltd.
<Summary>
The FSA published on its website the Business Strengthening Plan filed by Procrea Holdings, Inc. and The Michinoku Bank, Ltd., which sets out the management structure and so forth in the business strengthening plan of Procrea Holdings, Inc., 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/20220415/20220415.htmlopen new window

 

Securities

April 20, 2022 Supervisory Focus Points and Actions in Light of the Losses Resulting from the Default of a U.S. Investment Fund
April 15, 2022 Guidebook for Registration of Investment Management Business and Other Financial Instruments Businesses
April 15, 2022 Administrative penalty charges against an individual (the same person in two cases) who committed a series of wash sales (fake purchases and sales) of stocks of SANSHIN CORPORATION, thereby committing insider trading as a contract negotiator with the tender offeror in regard to the stocks of the said entity
<Summary>
On April 14, 2022, the FSA issued orders to impose administrative penalty charges against an individual (the same person in two cases) who committed a series of wash sales* (fake purchases and sales) of stocks of SANSHIN CORPORATION,** thereby committing insider trading as a contract negotiator with the tender offeror in regard to the stocks of the said entity.
 

* A wash sale falls under unfair practices, referring to a transaction not aimed at the transfer of rights, in which the same person is typically a party to both the sale and purchase of the same transaction.

** SANSHIN CORPORTION was delisted in September 2018.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/shouken/20220414-1.htmlopen new window
https://www.fsa.go.jp/news/r3/shouken/20220414-2.htmlopen new window
 


Others

April 21, 2022 Result of the FSA's call for cooperation from the private sector to improve and enhance the effective implementation and promotion of the project for matching human resources for regional corporate management
The FSA has been promoting the project for matching human resources for regional corporate management to enhance human resource intermediary functions of regional financial institutions and to create a new inflow of professionals from major corporations to small- and medium-sized enterprises, thereby encouraging professionals with expertise at major corporations to play an active role in the respective regions.
To further promote the project, the FSA called for cooperation from the private sector, specifically to provide advice to the FSA on ways to improve and enhance human resource intermediary functions of regional financial institutions, with an application period over a week from March 30 to April 6, 2022.
On April 21, 2022, the FSA announced that it decided to seek cooperation from Mirai Works Inc., which responded to the call for applications.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/20220330/20220330.htmlopen new window
April 20, 2022 New series of articles contributed to "Bank Business" (a monthly magazine published by Kindai-Sales Co., Ltd.) in regard to financial and economic education (financial literacy) [release of the second installment]
<Summary>
The FSA has been contributing to a new series of articles in "Bank Business" (a monthly magazine published by Kindai-Sales Co., Ltd.) since March 2022, mainly in regard to financial and economic education (financial literacy). The contents of the series are also publicized on the FSA's web portalopen new window* to provide a greater number of people with information about financial literacy and financial and economic education initiatives.

*PDFThe second installmentopen new window in the series is available (only in Japanese) on the FSA's web portal. The theme of the second installment is "basics and key points of household financial management that should be kept in mind when providing relevant information to young people."


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/teach/kyouiku/01/01.htmlopen new window
April 20, 2022 Publication of a tutorial video explaining procedures for beginning investing via Tsumitate NISA (Dollar-Cost Averaging NISA) for household asset building
<Summary>
The FSA created and published a tutorial video explaining procedures for beginning investing via Tsumitate NISA (Dollar-Cost Averaging NISA) for household asset building.
Besides the explanation on how the Tsumitate NISA system works and what steps to take to open a Tsumitate NISA account, the tutorial video highlights points as to where financial consumers are likely to stumble when utilizing Tsumitate NISA for asset building, particularly in selecting financial instruments (mutual funds) to invest in and financial institutions to handle their investment account management.
The FSA expects that the video will prove helpful for a broad range of audiences, especially for those who are interested in Tsumitate NISA but are unfamiliar with managing it, or for those who have created a Tsumitate NISA account but have never purchased any financial instruments via that NISA account.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220420/20220420.htmlopen new window
April 19, 2022 Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau)
<Summary>
The FSA and the Kanto Local Finance Bureau issued a warning to an entity that is operating financial instruments businesses without proper registration. (See the updated list of EXCELforeign-based entitiesopen new window).

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/ordinary/chuui/mutouroku.htmlopen new window
April 18, 2022 Warning against fake/fraudulent websites claiming to represent the FSA
<Summary>
While the existence of fake/fraudulent websites claiming to represent the FSA is confirmed, the FSA has alerted the public to be aware of computer virus infection risks and other relevant risks when accessing fake/fraudulent websites that imitate the FSA's website. The FSA stresses that its official URL is https://www.fsa.go.jp/en/open new window, and urges the public to ensure that they access the correct, official website.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/sonota/20220418.htmlopen new window
April 18, 2022 Call for joint research participants in a survey and research aimed at enhancing the efficiency of financial institutions' business turnaround practices to support corporate borrowers' business enhancement by utilizing AI and ICT technologies
<Summary>
The FSA has been working on a survey and research since April 2022 aimed at the efficient and effective implementation of financial institutions' business turnaround practices to support corporate borrowers' business enhancement.
The survey and research now take the form of a joint survey and research, whereby the FSA calls for corporate participants and so forth from the private sector that are willing to cooperate in developing an AI prototype by utilizing their financial data on the FSA's website. Applications will be accepted until May 31, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r3/20220418/20220418.htmlopen new window
April 15, 2022 Updates on the application status of the special measures for the PoC (Proof of Concept) tests under the "regulatory sandbox system"
<Summary>
The FSA published updates on the application status of the special measures for the respective PoC (Proof of Concept) tests under the "regulatory sandbox system." The updated status is summarized as follows:

- The special measures taken by the FSA pursuant to the "Act on Special Measures for Productivity Improvement" concerning regulations for small amount and short term insurance companies were repealed on June 16, 2021.

- The PoC test, to which the special measures had been applied as a transitional measure even after the repeal, was terminated on March 31, 2022, at the applicant's request.

- Sufficient data could not be obtained from the said PoC test due to the impact of COVID-19 and other factors, making it difficult to verify the reinsurance underwriting risk by small amount and short term insurance companies, and therefore the FSA has not reached the phase of considering deregulation (in regard to reinsurance-related rules).


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/policy/sandbox/index.htmlopen new window
April 15, 2022 An article contributed to a special feature section in Journal "FHJ" (a quarterly magazine published by the FHJ [Future Homemakers of Japan]) in regard to financial and economic education (financial literacy)
<Summary>
The FSA contributed an article to a special feature section in Journal "FHJ"open new window* (a quarterly journal published by the FHJ [Future Homemakers of Japan]) mainly in regard to financial and economic education (financial literacy). The article** will also be publicized on the FSA's web page to provide a greater number of people with information about financial literacy and financial and economic education initiatives.
 

* The FHJopen new window is a nationwide association to promote home projects and practical and experiential activities of school home economics clubs as an extension of the content of home economics studies for all high school students.

**PDFThe articleopen 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/20220415/20220415.htmlopen new window

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