FSA Weekly Review No.538 May 25, 2023

FSA Weekly Review No.538: May 25, 2023

What’s New on the FSA Website

Week of May 12, 2023 - May 18, 2023

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

Public Comments

May 12, 2023	Publication of the draft amendments to the "regulatory notice pertaining to Pillar 1 requirements of capital adequacy" for public consultation <Summary> The FSA proposed the draft amendments to the "regulatory notice pertaining to Pillar 1 requirements of capital adequacy" (hereinafter referred to as the "proposal") for public consultation. The proposal is mainly intended to provide necessary amendments to the said regulatory notice to set forth the treatment of securitization products under the Pillar 1 requirements of capital adequacy, based on Criteria for identifying short-term "simple, transparent and comparable" securitisations and Capital treatment of securitisations of nonperforming loans, which were finalized and published by the Basel Committee on Banking Supervision (BCBS) in May 2018 and November 2020, respectively. Public comments will be accepted until 5:00 p.m. (JST), June 13, 2023. The original press release is available in Japanese at the following URL: https://www.fsa.go.jp/news/r4/ginkou/20230512-2.html
May 12, 2023	Publication of the draft amendments to the matters to be considered in handling the guidelines for the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" and other guidelines for other relevant and applicable regulations for public consultation <Summary> The FSA proposed the draft amendments to the matters to be considered in handling the respective guidelines for the following regulations, etc. (hereinafter referred to as the "proposal") for public consultation: - Regulation on Terminology, Forms and Preparation Methods of Financial Statements - Regulation on Terminology, Forms, and Preparation Methods of Interim Financial Statements - Regulation on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, and - the Cabinet Office Order on the System for Ensuring the Adequacy of Documents on Financial Calculation and of Other Information. The proposal is mainly intended to clarify the criteria for determining cases where the Commissioner of the FSA deems that the filing of financial statements disclosed or prepared by a foreign company in its home country or in an area outside Japan does not impair the public interest or the protection of investors when the foreign company files a Securities Registration Statement, etc. with the FSA. Public comments will be accepted until 5:00 p.m. [JST], June 12, 2023. The original press release is available in Japanese at the following URL: https://www.fsa.go.jp/news/r4/sonota/20230512/20230512.html

May 12, 2023

Publication of the draft amendments to the "regulatory notice pertaining to Pillar 1 requirements of capital adequacy" for public consultation
<Summary>
The FSA proposed the draft amendments to the "regulatory notice pertaining to Pillar 1 requirements of capital adequacy" (hereinafter referred to as the "proposal") for public consultation.
The proposal is mainly intended to provide necessary amendments to the said regulatory notice to set forth the treatment of securitization products under the Pillar 1 requirements of capital adequacy, based on

Criteria for identifying short-term "simple, transparent and comparable" securitisations open new window

and

Capital treatment of securitisations of nonperforming loans open new window

, which were finalized and published by the Basel Committee on Banking Supervision (BCBS) in May 2018 and November 2020, respectively.
Public comments will be accepted until 5:00 p.m. (JST), June 13, 2023.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r4/ginkou/20230512-2.html open new window

May 12, 2023

Publication of the draft amendments to the matters to be considered in handling the guidelines for the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" and other guidelines for other relevant and applicable regulations for public consultation
<Summary>
The FSA proposed the draft amendments to the matters to be considered in handling the respective guidelines for the following regulations, etc. (hereinafter referred to as the "proposal") for public consultation:

- Regulation on Terminology, Forms and Preparation Methods of Financial Statements

- Regulation on Terminology, Forms, and Preparation Methods of Interim Financial Statements

- Regulation on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, and

- the Cabinet Office Order on the System for Ensuring the Adequacy of Documents on Financial Calculation and of Other Information.

The proposal is mainly intended to clarify the criteria for determining cases where the Commissioner of the FSA deems that the filing of financial statements disclosed or prepared by a foreign company in its home country or in an area outside Japan does not impair the public interest or the protection of investors when the foreign company files a Securities Registration Statement, etc. with the FSA.
Public comments will be accepted until 5:00 p.m. [JST], June 12, 2023.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r4/sonota/20230512/20230512.html open new window

Press Releases

International

May 18, 2023	Washington D.C. Meeting of the International Forum of Independent Audit Regulators (IFIAR)
May 17, 2023	Updated : Dedicated Website for International Financial Center

Councils

May 15, 2023	Publication of the handouts and an outline of proceedings of the fourth meeting of "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title) <Summary> The FSA, as a co-host member of the secretariat* of the "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title), published the handouts and an outline of proceedings of the fourth meeting of the Advisory Council, which was held on April 5, 2023. The fourth meeting resumed the session of the third meeting, in which some of the private companies participating in the Advisory Council gave briefings on the current efforts and initiatives, challenges, and requests in terms of climate change risk assessment, and the Advisory Council members engaged in a question and answer session and exchanged opinions. The secretariat of the Advisory Council* is co-hosted by the FSA, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Land, Infrastructure, Transport and Tourism, and Ministry of the Environment, with representatives from the financial and non-financial sectors as Advisory Council members, and representative officials from the relevant government ministries and agencies as observers. **The Advisory Council is aimed at exchanging opinions on climate change-related data among stakeholders in the public and private sectors regarding their needs, challenges, and future directions to appropriately use climate change-related data, thereby effectively responding to climate change. The original press release is available in Japanese at the following URL: https://www.fsa.go.jp/singi/scenario_data/siryou/20230405.html https://www.fsa.go.jp/singi/scenario_data/gijiyousi/20230405.html

May 15, 2023

Publication of the handouts and an outline of proceedings of the fourth meeting of "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title)
<Summary>
The FSA, as a co-host member of the secretariat* of the "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title), published the handouts and an outline of proceedings of the fourth meeting of the Advisory Council, which was held on April 5, 2023.
The fourth meeting resumed the session of the third meeting, in which some of the private companies participating in the Advisory Council gave briefings on the current efforts and initiatives, challenges, and requests in terms of climate change risk assessment, and the Advisory Council members engaged in a question and answer session and exchanged opinions.

*The secretariat of the Advisory Council** is co-hosted by the FSA, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Land, Infrastructure, Transport and Tourism, and Ministry of the Environment, with representatives from the financial and non-financial sectors as Advisory Council members, and representative officials from the relevant government ministries and agencies as observers.

**The Advisory Council is aimed at exchanging opinions on climate change-related data among stakeholders in the public and private sectors regarding their needs, challenges, and future directions to appropriately use climate change-related data, thereby effectively responding to climate change.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/singi/scenario_data/siryou/20230405.html open new window

https://www.fsa.go.jp/singi/scenario_data/gijiyousi/20230405.html open new window

Banks

May 12, 2023	Conclusion of an agreement and a memorandum of understanding with SBI Shinsei Bank, Ltd. and SBI Regional Bank Holdings, Inc. regarding the handling of public funds for SBI Shinsei Bank, Limited <Summary> Upon the takeover bid for SBI Shinsei Bank, Limited by SBI Regional Bank Holdings, Co., Ltd., the Government of Japan (hereinafter referred to as the "Government") has concluded an agreement with SBI Shinsei Bank, Limited and SBI Holdings, Inc. (hereinafter referred to as "SBIHD") regarding the handling of the public funds injected when SBI Shinsei Bank operated as the Long-Term Credit Bank of Japan. The Government has also concluded a memorandum of understanding with SBIHD regarding the agreement on the handling of public funds. The agreement confirms the amount of public funds which must be repaid to the Government, and the SBI Shinsei Bank and SBI Holdings make best efforts to repay those funds as soon as possible while they comply relevant laws and maintain financial soundness. The original press release is available in Japanese at the following URL: https://www.fsa.go.jp/news/r4/ginkou/20230512-1.html

May 12, 2023

Conclusion of an agreement and a memorandum of understanding with SBI Shinsei Bank, Ltd. and SBI Regional Bank Holdings, Inc. regarding the handling of public funds for SBI Shinsei Bank, Limited
<Summary>
Upon the takeover bid for SBI Shinsei Bank, Limited by SBI Regional Bank Holdings, Co., Ltd., the Government of Japan (hereinafter referred to as the "Government") has concluded an agreement with SBI Shinsei Bank, Limited and SBI Holdings, Inc. (hereinafter referred to as "SBIHD") regarding the handling of the public funds injected when SBI Shinsei Bank operated as the Long-Term Credit Bank of Japan.
The Government has also concluded a memorandum of understanding with SBIHD regarding the agreement on the handling of public funds.
The agreement confirms the amount of public funds which must be repaid to the Government, and the SBI Shinsei Bank and SBI Holdings make best efforts to repay those funds as soon as possible while they comply relevant laws and maintain financial soundness.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r4/ginkou/20230512-1.html open new window

Others

May 12, 2023	Administrative action against Kabushiki Kaisha Supremes (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took administrative action against Kabushiki Kaisha Supremes,* a deemed crypto-asset exchange service provider, pursuant to the "Payment Services Act," ordering the improvement of its business operations. This administrative action was taken mainly due to the fact that the service provider did not file a statutory report in response to the Bureau's report order. * As the entity has no English corporate name, the Romanized version of the Japanese corporate name is stated here. Kabushiki Kaisha stated in the corporate name means "stock company" in Japanese. The original press release is available in Japanese at the following URL: https://www.fsa.go.jp/news/r4/sonota/20230512-2/20230512-2.html

May 12, 2023

Administrative action against Kabushiki Kaisha Supremes (The Kanto Local Finance Bureau)
<Summary>
The Kanto Local Finance Bureau took administrative action against Kabushiki Kaisha Supremes,* a deemed crypto-asset exchange service provider, pursuant to the "Payment Services Act," ordering the improvement of its business operations.
This administrative action was taken mainly due to the fact that the service provider did not file a statutory report in response to the Bureau's report order.

* As the entity has no English corporate name, the Romanized version of the Japanese corporate name is stated here. Kabushiki Kaisha stated in the corporate name means "stock company" in Japanese.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r4/sonota/20230512-2/20230512-2.html open new window

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