FSA Weekly Review No.512 November 4, 2022

FSA Weekly Review No.512: November 4, 2022

What’s New on the FSA Website

Week of October 21, 2022 - October 27, 2022

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

Public Comments

October 21, 2022	Publication of draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" for public consultation <Summary> The FSA has published draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" for public consultation. The proposal is mainly aimed at developing provisions of the relevant and applicable cabinet orders, cabinet office orders, and others, in response to the enforcement of the "Act Partially Amending the Certified Public Accountants Act and the Financial Instruments and Exchange Act" (Act No. 41 of 2022). In particular, the proposal is aimed at providing amendments in regard to the following: (1) Development of provisions pertaining to the registration system for auditors of listed companies, and so forth (2) Development of provisions pertaining to the limitation of services based on marital relationships of audit corporation partners, and (3) Other matters, including certified public accountants' registration-related matters. Public comments will be accepted until 5:00 p.m. [JST], November 21, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20221021/20221021.html

October 21, 2022

Publication of draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" for public consultation
<Summary>
The FSA has published draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" for public consultation. The proposal is mainly aimed at developing provisions of the relevant and applicable cabinet orders, cabinet office orders, and others, in response to the enforcement of the "Act Partially Amending the Certified Public Accountants Act and the Financial Instruments and Exchange Act" (Act No. 41 of 2022).
In particular, the proposal is aimed at providing amendments in regard to the following:

(1) Development of provisions pertaining to the registration system for auditors of listed companies, and so forth

(2) Development of provisions pertaining to the limitation of services based on marital relationships of audit corporation partners, and

(3) Other matters, including certified public accountants' registration-related matters.

Public comments will be accepted until 5:00 p.m. [JST], November 21, 2022.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20221021/20221021.html open new window

Press Releases

International

October 24, 2022	Director for International AML/CFT Policy, International Affairs Office Elected New Co-Chair of the Virtual Assets Contact Group of FATF

Councils

October 27, 2022	Publication of the agenda and handouts of the first meeting of the "Working Group on Impact Investment" <Summary> The FSA published the agenda and handouts of the first meeting of the "Working Group on Impact Investment," which was held on October 28, 2022. Briefings on trends in impact investment and other relevant matters, and on the overview of the "Study Group on Impact Investment" were respectively given by the secretariat (the FSA) of the Working Group and by a member of the Working Group, whereby the Working Group members discussed the respective topics thereof. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/impact/siryou/20221028.html
October 25, 2022	Establishment of “Working Group on Impact Investment”
October 21, 2022	Publication of the agenda and handouts of the "Study Group on Environmental Improvement for Effective Transition Finance" (provisional English title) <Summary> The FSA published the agenda and handouts of the fifth meeting of the "Study Group on Environmental Improvement for Effective Transition-Finance" (provisional English title), which was jointly held on September 1, 2022 by the FSA, the METI (Ministry of Economy, Trade and Industry), and the MoE (Ministry of the Environment) to formulate basic principles for transition-finance in Japan, particularly in terms of raising funds through transition bonds, loans, etc. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/transition_finance/siryou/20220901.html
October 21, 2022	Publication of the agenda and handouts of the second meeting of the "Customer-Oriented Business Conduct Task Force" (provisional English title) of the Financial System Council <Summary> The FSA published the agenda and handouts of the second meeting of the "Customer-Oriented Business Conduct Task Force"* (provisional English title) of the Financial System Council, which was held on October 24, 2022. The task force secretariat (the FSA) gave a briefing on the key topics below, followed by a discussion. - Key comments from the members at the first meeting - Enhancement of functions of the entire investment chain to support stable asset formation of households - Customer-oriented business conduct by distributors and advisors of financial instruments - Enhancement of functions of asset owners (who own corporate pension funds and other assets) - Enhancement of asset management business, and -Enhancement of financial literacy among households. *This task force was launched by "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council to further discuss matters related to the customer-oriented business conduct. The FSA serves as the secretariat of both the task force and the working group. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/singi_kinyu/kokyakuhoni_tf/siryou/20221024.html
October 21, 2022	Publication of the agenda and handouts of the sixth meeting of the "Council of Experts on Audit Firm Governance Code" <Summary> The FSA published the agenda and handouts of the sixth meeting of the "Council of Experts on Audit Firm Governance Code," which was held on October 24, 2022. The secretariat (the FSA) gave a briefing on changes in the environment surrounding accounting and auditing and discussion points based on audit firms' initiatives taken after the introduction of the Audit Firm Governance Code, followed by a discussion. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/governance_code/siryou/20221024.html

Securities

October 21, 2022	Administrative action against Merchantbrains Investmentadvisor Co., Ltd. (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took administrative action against Merchantbrains Investmentadvisor Co., Ltd., which engages in investment advisory and agency business, ordering the suspension of the entity's business operations in regard to services associated with the solicitation and conclusion of new investment advisory contracts (including changes in contracts involving an increase in the contract amount), from October 21, 2022, to November 20, 2022, and the improvement of its business operations, pursuant to the "Financial Instruments and Exchange Act" (FIEA). This administrative action was taken in response to the recommendation (as of September 30, 2022) from the Securities and Exchange Surveillance Commission for an administrative action against Merchantbrains Investmentadvisor Co., Ltd., which was found to have acted in violation of the FIEA, based on onsite monitoring. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20221021.html
October 21, 2022	Administrative penalty charge against an individual (non-insider/retail investor) for committing insider trading regarding stocks of Kansai Mirai Financial Group, Inc., by using information received from an employee of the entity <Summary> On October 20, 2022, the FSA issued an order to impose an administrative penalty charge against an individual (non-insider/retail investor) for committing insider trading regarding stocks of Kansai Mirai Financial Group, Inc., in violation of the "Financial Instruments and Exchange Act," by using information received from an employee of the entity. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20221021-2.html
October 21, 2022	Administrative penalty charge against an individual for committing insider trading regarding stocks of Kansai Mirai Financial Group, Inc., by using insider information obtained as an employee of the entity, and for communicating the insider information to a non-insider (retail investor) who purchased the stocks of the entity based on the said employee's recommendation <Summary> On October 20, 2022, the FSA issued an order to impose an administrative penalty charge against an individual for committing insider trading regarding stocks of Kansai Mirai Financial Group, Inc., by using insider information obtained as an employee of the entity and purchased the stocks on the employee's own account using two third-party securities accounts, and for communicating information to a non-insider (retail investor) who purchased the stocks of the entity based on the said employee's recommendation, 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/r4/shouken/20221021-1.html
October 21, 2022	Administrative penalty charge against an individual for market manipulation regarding stocks of Nippon Sheet Glass Company, Limited and TSUKADA GLOBAL HOLDINGS Inc. <Summary> On October 20, 2022, the FSA issued an order to impose an administrative penalty charge against an individual for market manipulation regarding stocks of Nippon Sheet Glass Company, Limited and TSUKADA GLOBAL HOLDINGS Inc., 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/r4/shouken/20221021-3.html
October 21, 2022	Administrative penalty charge against an individual for recommending the purchase of stocks of Taisei Co., Ltd. to a non-insider (retail investor) based on insider information obtained as an employee of the entity, in regard to the implementation of a tender offer for the shares of the entity <Summary> On October 20, 2022, the FSA issued an order to impose an administrative penalty charge against an individual for recommending the purchase of stocks of Taisei Co., Ltd.* to a non-insider (retail investor) based on insider information obtained as an employee of the entity, in regard to the implementation of a tender offer** for the shares of the entity. * Taisei Co., Ltd was delisted in June 2021. **Information concerning the implementation of the tender offer that an entity determining the business execution of Taisei Co., Ltd had decided to implement for the shares of Taisei Corporation. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20221021-4.html

Insurance

October 24, 2022	Publication of the summary from "Annual Report on Insurance Monitoring 2022"

Others

October 21, 2022	Publication of the agenda of the third meeting of the "Study Group on Impact Investment – Phase 2" <Summary> The FSA published the agenda of the third meeting of the "Study Group on Impact Investment – Phase 2," which was held on September 12, 2022, co-hosted by the FSA and the National Advisory Board of the Global Steering Group for Impact Investment (GSG-NAB Japan). The Study Group meets regularly (on a trimonthly basis) to deepen the understanding of "impact investment" among capital market participants and government authorities. Handouts of the third meeting are available on the webpage of GSG-NAB Japan. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20221021.html

October 21, 2022

Publication of the agenda of the third meeting of the "Study Group on Impact Investment – Phase 2"
<Summary>
The FSA published the agenda of the third meeting of the "Study Group on Impact Investment – Phase 2," which was held on September 12, 2022, co-hosted by the FSA and the National Advisory Board of the Global Steering Group for Impact Investment (GSG-NAB Japan). The Study Group meets regularly (on a trimonthly basis) to deepen the understanding of "impact investment" among capital market participants and government authorities. Handouts of the third meeting are available on the webpage of GSG-NAB Japan

.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20221021.html

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