Financial Services AgencyFSA Weekly Review No.523

February 2, 2023

What’s New on the FSA Website

Week of January 20, 2023 - January 26, 2023

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

Public Comments

January 26, 2023 Publication of the finalized amendments to the regulatory notices pertaining to leverage ratio requirements applicable to the Norin Chukin Bank and the Shoko Chukin Bank Limited after public consultation
<Summary>
On January 26, 2023, the FSA finalized the amendments to the regulatory notices pertaining to leverage ratio requirements applicable to the Norin Chukin Bank and the Shoko Chukin Bank Limited after public consultation, following the corresponding amendments applicable to banks and bank holding companies, promulgated in July 2022.
Subsequent to the public consultation conducted in regard to the Pillar 1 and Pillar 3 requirements of capital adequacyopen new window, the amendments mainly provide corresponding amendments to leverage ratio requirements in response to the finalized Basel III framework (which refers to a consolidated package of the "Basel III framework"open new window [December 2017]).
The introduction of the leverage ratio buffer across G-SIBs will take effect on March 31, 2023.

Other than the introduction of the leverage ratio buffer, changes in the method of calculating the leverage ratio will be implemented simultaneously in conjunction with the finalized Basel III capital adequacy requirements.
This means that, while the effective date will be March 31, 2024, in principle, financial institutions that adopt early implementation of the Basel III framework finalized on or after March 31, 2023, will also be required to adopt early implementation of leverage ratio calculations simultaneously.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/ginkou/20230126.htmlopen new window
January 25, 2023 Publication of the finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" after public consultation
<Summary>
The FSA published the finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Certified Public Accountants Act" after public consultation. The finalized Cabinet Orders and Cabinet Office Orders mainly develop 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 finalized Cabinet Orders and Cabinet Office Orders provide 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.

The finalized Cabinet Orders and Cabinet Office Orders will be enforced on April 1, 2023, whereby the corresponding amendments to the relevant and applicable comprehensive guidelines for supervision will take effect on the same date.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20230125/20230125.htmlopen new window
January 20, 2023 Publication of the finalized amendments to the regulatory notice designating transactions and lending/borrowing to be excluded from the transactions subject to the regulations on "Financial Instruments Obligation Assumption Business" after public consultation
<Summary>
The FSA finalized the amendments to the regulatory notice designating transactions and lending/borrowing to be excluded from the transactions subject to the regulations on "Financial Instruments Obligation Assumption Business" after public consultation.
The finalized amendments designate certain securities trading and lending/borrowing cleared at clearing houses in the Republic of India as well as Indian rupee-denominated interest-rate swap transactions cleared at CCIL (The Clearing Corporation of India Ltd.) as transactions to be excluded from the scope of transactions subject to financial instruments obligation assumption services prescribed in Article 2, paragraph (28) of the "Financial Instruments and Exchange Act."
The finalized amendments took effect on January 20, 2023.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/shouken/20221207/20230120.htmlopen new window

Press Releases

Policies

January 23, 2023 Publication of the budget for each policy measure
<Summary>
The FSA published the budget for each policy measure for FY2023 to link the FY2023 initial budget with policy evaluation.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/common/budget/yosan/seisaku5.htmlopen new window

International 

January 20, 2023 Memorandum of Cooperation with the European Central Bank

Councils

January 25, 2023 Appointment of the Financial System Council’s committee members
<Summary>
The FSA announced that the Financial System Council’s committee members were appointed by the Prime Minister.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/singi/20230125.htmlopen new window
January 24, 2023 Publication of the agenda and handouts of the sixth meeting of the "Working Group on Legal Institutions for Cash-flow-focused Lending Practices" (provisional English title) of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the sixth meeting of the "Working Group on Legal Institutions for Cash-flow-focused Lending Practices" (provisional English title) of the Financial System Council, which was held on January 25, 2023.
In the sixth meeting, the working group members discussed the draft "Report of the Working Group on Legal Institutions for Cash-flow-focused Lending Practices" based on discussions at the previous meetings, as well as other remaining matters requiring further discussions. 

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/singi_kinyu/jigyoyushi_wg/siryou/20230125.htmlopen new window
January 20, 2023 Publication of the agenda and handouts of the 146th meeting of the Council on Automobile Liability Insurance
<Summary>
The FSA published the agenda and handouts of the 146th meeting of the Council on Automobile Liability Insurance, which was held on January 20, 2023.
The draft new standard insurance premium rates submitted by General Insurance Rating Organization of Japan were discussed and approved as proposed. The new standard insurance premium rates are scheduled to take effect in April 2023.
 

Note: It was decided at the 146th Conference that revisions to the [compulsory] automobile* liability insurance (CALI) premium rates for FY 2023, lowering the rates from the previous rates, are necessary.

* The term "automobile" in this context means an automobile under the "Road Transport Vehicle Act" (other than a small-sized special purpose vehicle manufactured for use in farm work) or a motorized bicycle. 


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/singi_zidousya/siryou/20230120.htmlopen new window

Securities

January 26, 2023 Administrative penalty charge against an individual (a non-insider/retail investor) for commiting insider trading regarding stocks of NAGOYA ELECTRIC WORKS CO., LTD. by using insider information received from an employee of the entity
<Summary>
On January 25, 2023, 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 NAGOYA ELECTRIC WORKS CO., LTD. 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/20220414-1.htmlopen new window
January 26, 2023 Administrative penalty charge against an individual for committing market manipulation regarding stocks of YE DIGITAL Corporation and Datasection Inc.
<Summary>
On January 25, 2023, the FSA issued an order to impose an administrative penalty charge against an individual for committing market manipulation regarding stocks of YE DIGITAL Corporation and Datasection 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/20230125-2.htmlopen new window

Others

January 25, 2023 Requests for financial measures to deal with disasters caused by the heavy snow which started on January 24, 2023 (the Chugoku Local Finance Bureau)
<Summary>
On January 25, 2023, the Chugoku Local Finance Bureau alongside the Bank of Japan's Matsue Branch issued a statement titled "Financial Measures to Deal with Disasters Caused by the Heavy Snow Which Started on January 24, 2023" to the relevant financial institutions. The statement requests financial institutions in Tottori Prefecture 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/r4/ginkou/20230125.htmlopen new window
January 25, 2023 Completion of support for the third project of "Frontrunner Support-Hub on Enterprise System"
<Summary>
The FSA has announced the completion of support for the third project of "Frontrunner Support-Hub on Enterprise System" established in March 2020, thereby publishing the overall summary report of the third project including underlying key issues related to IT governance and risk management in monitoring, which have been clarified through the provision of support from the Support-Hub.*
The Support-Hub has provided support for financial institutions' innovative approaches/initiatives for enterprise systems, particularly in system monitoring of IT governance and IT-related risk management, in addition to functions such as legal interpretation (regulatory applicability).
* The Support-Hub has been upgraded with enhanced functions to "Frontrunner Support Desk on Financial Institution's Computer Systems"open new window(provisional English title) since November 2021.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20230125.htmlopen new window
January 20, 2023 Publication of the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" (as of the end of October 2022), and the publication of an analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions on the said list (as of the end of March 2022)
<Summary>
The FSA updated the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" as of the end of October 2022, in order to visualize financial institutions' initiatives and efforts.
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 said Principles.
The FSA also published an updated trend analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions as of the end of March 2022. 

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/kokyakuhoni/20230120/fd_20230120.htmlopen new window

Site Map

top of page