FSA Weekly Review No.535 April 27, 2023

FSA Weekly Review No.535: April 27, 2023

What’s New on the FSA Website

Week of April 14, 2023 - April 20, 2023

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

Press Conferences

April 20, 2023	Press Conference by the Minister of State for Financial Services (March 22, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (March 17, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (March 14, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (March 3, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (February 14, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (January 17, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (January 6, 2023)
April 20, 2023	Press Conference by the Minister of State for Financial Services (December 23, 2022)

Public Comments

April 17, 2023	Publication of the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" for public consultation <Summary> The FSA proposed the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" (hereinafter referred to as the "proposal") for public consultation. In light of recent changes in economic conditions, and in accordance with the applicable provisions of the "Financial Instruments and Exchange Act" and the "Certified Public Accountants Act," the proposal is intended to increase the maximum daily allowance to be paid to a witness in a trial procedure pertaining to an administrative monetary penalty payment order from the current 8,050 yen to 8,100 yen and to an expert witness from the current 7,650 yen to 7,700 yen. Public comments will be accepted until 5:00 p.m. [JST], May 21, 2023. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20230417/20230417.html

April 17, 2023

Publication of the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" for public consultation
<Summary>
The FSA proposed the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" (hereinafter referred to as the "proposal") for public consultation.

In light of recent changes in economic conditions, and in accordance with the applicable provisions of the "Financial Instruments and Exchange Act" and the "Certified Public Accountants Act," the proposal is intended to increase the maximum daily allowance to be paid to a witness in a trial procedure pertaining to an administrative monetary penalty payment order from the current 8,050 yen to 8,100 yen and to an expert witness from the current 7,650 yen to 7,700 yen.

Public comments will be accepted until 5:00 p.m. [JST], May 21, 2023.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20230417/20230417.html open new window

Press Releases

International

April 14, 2023	JFSA hosted Financial Action Task Force (FATF) Virtual Assets Contact Group Meeting in Tokyo

Councils

April 19, 2023	Summary of results of the International Conference on Sustainability Disclosure
April 19, 2023	Publication of the agenda and handouts (for the seventh and eighth meetings), as well as the outlines of proceedings (for the sixth and seventh meetings) of the "Study Group on Environmental Improvement for Effective Transition Finance" (provisional English title) <Summary> The FSA, the METI (Ministry of Economy, Trade and Industry), and the MoE (Ministry of the Environment) published the agenda and handouts (for the seventh and the eighth meetings), as well as the outlines of proceedings (for the sixth and the seventh meetings) of the "Study Group on Environmental Improvement for Effective Transition-Finance" (provisional English title), which were jointly held by the FSA, the METI, and the MoE. The sixth, seventh, and eighth meetings were respectively held on December 5, 2022, February 21, 2023, and March 24, 2023, in which the Study Group members considered and discussed the follow-up guidance for financial institutions and investors, aimed at enhancing credibility in transition financing, particularly at ensuring steady implementation of transition strategies after financing as well as contribution to corporate value enhancement. The original press releases are available in Japanese at the following URLs. https://www.fsa.go.jp/singi/transition_finance/gijiyousi/20221205.html https://www.fsa.go.jp/singi/transition_finance/siryou/20230221.html　 https://www.fsa.go.jp/singi/transition_finance/gijiyousi/20230221.html https://www.fsa.go.jp/singi/transition_finance/siryou/20230324.html
April 18, 2023	Publication of the agenda of the 28th meeting of the "Council of Experts Concerning the Follow-up of Japan's Stewardship Code and Japan's Corporate Governance Code" <Summary> The FSA published the agenda of the 28th meeting of the "Council of Experts Concerning the Follow-up of Japan's Stewardship Code and Japan's Corporate Governance Code," which was held on April 19, 2023. For accelerating corporate governance reform, the council members discussed the current issues and future initiatives, as well as the draft "Action Program for Accelerating Corporate Governance Reform." The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/follow-up/siryou/20230419.html

Securities

April 14, 2023	Administrative action against YOSU Godo Kaisha, a notifier of specially permitted business for qualified institutional investors (SPBQII), with whom the Kanto Local Finance Bureau cannot make contact <Summary> The Kanto Local Finance Bureau took administrative action against YOSU Godo Kaisha, a notifier of specially permitted business for qualified institutional investors (SPBQII). This administrative action is based on facts found to be in violation of the "Financial Instruments and Exchange Act" (FIEA), such as where the notifier failed to submit to the Bureau the mandatory business reports (i.e. "jigyo-hokokusho" in Japanese) as well as the statutory report on the implementation of its business improvement following the previous business improvement order issued in January 2023, whereafter the Bureau ordered the abolition of the notifier's entire specially permitted business for qualified institutional investors, and the improvement of its business operations, pursuant to the FIEA. Note: As the said entity has no English corporate name, the Romanized version of the Japanese corporate name is stated here. Godo Kaisha (Godo Gaisha) stated in YOSU Godo Kaisha means "limited liability company," in Japanese. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20230414.html

April 14, 2023

Administrative action against YOSU Godo Kaisha, a notifier of specially permitted business for qualified institutional investors (SPBQII), with whom the Kanto Local Finance Bureau cannot make contact
<Summary>
The Kanto Local Finance Bureau took administrative action against YOSU Godo Kaisha, a notifier of specially permitted business for qualified institutional investors (SPBQII).
This administrative action is based on facts found to be in violation of the "Financial Instruments and Exchange Act" (FIEA), such as where the notifier failed to submit to the Bureau the mandatory business reports (i.e. "jigyo-hokokusho" in Japanese) as well as the statutory report on the implementation of its business improvement following the previous business improvement order issued in January 2023, whereafter the Bureau ordered the abolition of the notifier's entire specially permitted business for qualified institutional investors, and the improvement of its business operations, pursuant to the FIEA.

Note: As the said entity has no English corporate name, the Romanized version of the Japanese corporate name is stated here. Godo Kaisha (Godo Gaisha) stated in YOSU Godo Kaisha means "limited liability company," in Japanese.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/shouken/20230414.html open new window

Others

April 18, 2023	Warnings issued to Kabushiki Kaisha Bridge Investment and Crypto-currency Worldwide Kabushiki Kaisha that are operating crypto-asset (virtual currency) exchange business without proper registration <Summary> The FSA issued warnings to Kabushiki Kaisha Bridge Investment and Crypto-currency Worldwide Kabushiki Kaisha that are operating crypto-asset (virtual currency) exchange business without proper registration in violation of the "Payment Services Act." Note: As the said entities have no English corporate names, the Romanized version of the Japanese corporate names are stated here. Kabushiki Kaisha (Kabushiki Gaisha) stated in both companies means "stock company," in Japanese. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/policy/virtual_currency02/kantou_keikokushiryo.pdf
April 17, 2023	Eighteenth Meeting of the "Council for Cooperation on Financial Stability"
April 17, 2023	Seminars for financial institutions and economic organizations, etc. to introduce lending and business turnaround practices to support corporate borrowers’ business enhancement <Summary> Due to the prolonged impact of COVID-19 and global price increases, some businesses are still facing difficult conditions. Also, more businesses are starting to repay interest-free and publicly-guaranteed loans provided by private financial institutions. Considering such circumstances, the FSA, the Small and Medium Enterprise Agency, and the Ministry of Finance will jointly hold seminars for financial institutions and economic organizations, etc. in order to disseminate policies and practices to provide business turnaround supports and others. On April 17, 2023, the kick-off seminar was held in Tokyo. Similar seminars will be subsequently held in the respective regions across Japan. A summary of each regional seminar will be published in due course after the seminar is held. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20230417/20230417.html
April 14, 2023	Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector <Summary> The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with relevant associations in the financial sector in March 2023. (Available only in Japanese). Common topics across the groups were: - Facilitation of financing for business enterprises (such as small- and medium-sized enterprises), and so forth - Response to the shift from LIBOR - Enhancement of human resource intermediary functions of regional financial institutions - Implementation of Basel III - Publication of the survey on the actual status of AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) measures taken by financial institutions (in regard to the statutory report under Article 24 of the Banking Act) - Digital payment of wages - FIN/SUM 2023 (held in March, 2023) - Failure of Silicon Valley Bank and Signature Bank in the U.S. - Financial wellness for employees - Deliverables of G20 Summit (in February 2023) - Priorities in the finance track under the G7 Japan presidency * To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes 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 2023, opinion exchange meetings were held respectively with two groups: major banks, etc.; and the Regional Banks Association of Japan and the Second Association of Regional Banks. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/ronten/index.html

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