FSA Weekly Review No.591 June 21, 2024

FSA Weekly Review No.591: June 21, 2024

What’s New on the FSA Website

Week of June 7, 2024 - June 13, 2024

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

Press Releases

Policies

June 13, 2024	Initiatives by the financial industry to enhance their asset management businesses
June 7, 2024	Publication of the examples of initiatives taken by financial institutions under their EMPs

Councils

June 10, 2024	Publication of the agenda, handouts, and an outline of proceedings of the tenth 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 agenda, handouts, and outlines of proceedings of the tenth meeting of the Advisory Council, which was held on March 19, 2024. In the tenth meeting, two guest practitioners from the private sector and officials from Ministry of Infrastructure, Transport and Tourism, Ministry of Environment, and Japan Meteorological Agency respectively gave presentations, whereupon the participants exchanged opinions based on the topics presented. 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.(1)(2)
June 7, 2024	Publication of the agenda and handouts of the first meeting of the "Working Group on Financial Infrastructure for Carbon Credit Transactions" (provisional English title) <Summary> The FSA published the agenda and handouts of the first meeting of the "Working Group on Financial Infrastructure for Carbon Credit Transactions" (provisional English title), which was held on June 10, 2024. From the perspective of enhancing the transparency and soundness of carbon credit transactions and promoting investor protection, the Working Group intends to work on the optimal trading infrastructure and market practices regarding carbon credits from a practical and professional perspective, thereby discussing initial issues. The original press release is available in Japanese.
June 7, 2024	Publication of the agenda and handouts of the fourth meeting of the "Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector" (provisional English title) <Summary> The FSA published the agenda and handouts of the fourth meeting of the "Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector" (provisional English title), which was held on June 7, 2024. In the fourth meeting, the Expert Panel members engaged in discussion mainly in regard to the draft report for a summary of discussions in the Expert Panel. The original press release is available in Japanese.
June 7, 2024	Publication of the "Action Program for Corporate Governance Reform 2024: Principles into Practice"

Banks

June 12, 2024	Overview of the Japanese regional banks’ financial results for the fiscal year ended March 31, 2024
June 11, 2024	Monitoring Report on Regional Banks' Securities Investment Management
June 7, 2024	Request for the ensuring of providing business support for business operators in line with the shift to post-COVID-19 financial support measures that focus on holistic support measures for business turnaround of corporate borrowers <Summary> While socioeconomic activities are beginning to normalize from the phase of the COVID-19 crisis, various financial support measures will be returned to the pre-COVID-19 crisis level from July 2024 onward while giving consideration to the areas affected by the Noto Peninsula earthquake in 2024, shifting to focus on holistic support measures for corporate borrowers in terms of forward-looking management improvement and business turnaround, not limited to financial (cash management) support. Where many business operators are still facing difficult cash flow conditions with tight borrowing constraints due to price hikes in materials, etc. associated with Japanese yen depreciation, etc., the Cabinet Office alongside certain ministries and agencies,* including the FSA, jointly requested financial institutions to further extend tailored business support to corporate borrowers suffering from corporate debts, which ballooned during the COVID-19 crisis, by referring to the "Holistic Support Measures for Business Turnaround of Corporate Borrowers" (provisional English title) [available only in Japanese] published by the government in March 2024. *Ministries and agencies in this context mean Ministry of Finance (MOF), Ministry of Health, Labour and Welfare (MHLW), Ministry of Agriculture, Forestry and Fisheries (MAFF), the Fisheries Agency, the Small and Medium Enterprise Agency (SMEA), and the FSA. The original press release is available in Japanese.

Securities

June 11, 2024	Administrative actions against FULCLUM Godo Kaisha, Peace Capital Limited Liability Partnership, Primal Capital Limited Liability Partnership, and MOIL Specified Business Godo Kaisha, notifiers of specially permitted businesses for qualified institutional investors (SPBQII) <Summary> The Kanto Local Finance Bureau took administrative actions against four notifiers of specially permitted businesses for qualified institutional investors (SPBQII), namely, FULCRUM Godo Kaisha, Peace Capital Limited Liability Partnership, Primal Capital Limited Liability Partnership, and MOIL Specified Business Godo Kaisha, based on facts found to be in violation of the "Financial Instruments and Exchange Act" (FIEA), such as the entities failed to file mandatory business reports ("jigyo-hokokusho" in Japanese), ordering the improvement of their business operations pursuant to the FIEA. *The orders to improve their business operations include the following: (1) to swiftly file the mandatory business reports with the said Bureau (2) to investigate the causes of the act; formulate reoccurrence preventive measures; and develop appropriate business conduct systems and legal and regulatory compliance structures (3) to take measures to improve the understanding and awareness of regulatory compliance among officers and employees, and (4) to report in writing the status of actions and implementation of (1) through (3) above until completion (as soon as improvement measures are formulated and implemented). Note: As the said entities have no English corporate names, the Romanized versions of the Japanese corporate names are stated here. Godo Kaisha (Godo Gaisha) stated in two entities means "limited liability company," in Japanese. The original press release is available in Japanese.
June 7, 2024	Administrative action against FTX Japan, Inc. (extension of the order of retention of assets within Japan for another three months) [The Kanto Local Finance Bureau] <Summary> The Kanto Local Finance Bureau took administrative action against FTX Japan, Inc., pursuant to the "Financial Instruments and Exchange Act" (hereinafter referred to as the "FIEA"), ordering the extension of the order of retention of assets* within Japan for another three months from June 10, 2024, to September 9, 2024, upon expiration of the order for the retention of assets within Japan issued on March 8, 2024 pursuant to Article 56-3 of the FIEA. This administrative action was taken to ensure the continued protection of investors, taking into account the fact that the company is subject to bankruptcy filings** under the U.S. Bankruptcy Code initiated by its parent company, etc. (The order to improve its business operations, which was issued on November 10, 2022, remains in effect.) Details of the administrative action are available [only in Japanese] on the website of the Kanto Local Finance Bureau. * "Assets" in this context refer to those retained within Japan from June 10, 2024, to September 9, 2024, equal to the amount of liabilities to be recorded in the liabilities section of the entity's balance sheet (including the amount of guarantee obligations) less the amount of liabilities to non-residents as of the respective dates (unless otherwise approved by the Bureau as being in the public interest or in the interest of investor protection). ** Bankruptcy filings under Chapter 11 of the U.S. Bankruptcy Code generally pertain to reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. (Source: the webpage of the U.S. Federal Courts ) The original press release is available in Japanese.

June 11, 2024

Administrative actions against FULCLUM Godo Kaisha, Peace Capital Limited Liability Partnership, Primal Capital Limited Liability Partnership, and MOIL Specified Business Godo Kaisha, notifiers of specially permitted businesses for qualified institutional investors (SPBQII)
<Summary>
The Kanto Local Finance Bureau took administrative actions against four notifiers of specially permitted businesses for qualified institutional investors (SPBQII), namely, FULCRUM Godo Kaisha, Peace Capital Limited Liability Partnership, Primal Capital Limited Liability Partnership, and MOIL Specified Business Godo Kaisha, based on facts found to be in violation of the "Financial Instruments and Exchange Act" (FIEA), such as the entities failed to file mandatory business reports ("jigyo-hokokusho" in Japanese), ordering the improvement of their business operations pursuant to the FIEA.

*The orders to improve their business operations include the following:

(1) to swiftly file the mandatory business reports with the said Bureau

(2) to investigate the causes of the act; formulate reoccurrence preventive measures; and develop appropriate business conduct systems and legal and regulatory compliance structures

(3) to take measures to improve the understanding and awareness of regulatory compliance among officers and employees, and

(4) to report in writing the status of actions and implementation of (1) through (3) above until completion (as soon as improvement measures are formulated and implemented).

Note: As the said entities have no English corporate names, the Romanized versions of the Japanese corporate names are stated here. Godo Kaisha (Godo Gaisha) stated in two entities means "limited liability company," in Japanese.

The original press release is available in Japanese. open new window

June 7, 2024

Administrative action against FTX Japan, Inc. (extension of the order of retention of assets within Japan for another three months) [The Kanto Local Finance Bureau]
<Summary>
The Kanto Local Finance Bureau took administrative action against FTX Japan, Inc., pursuant to the "Financial Instruments and Exchange Act" (hereinafter referred to as the "FIEA"), ordering the extension of the order of retention of assets* within Japan for another three months from June 10, 2024, to September 9, 2024, upon expiration of the order for the retention of assets within Japan issued on March 8, 2024 pursuant to Article 56-3 of the FIEA.
This administrative action was taken to ensure the continued protection of investors, taking into account the fact that the company is subject to bankruptcy filings** under the U.S. Bankruptcy Code initiated by its parent company, etc. (The order to improve its business operations, which was issued on November 10, 2022, remains in effect.)
Details of the administrative action are available [only in Japanese] on the website of the Kanto Local Finance Bureau open new window

* "Assets" in this context refer to those retained within Japan from June 10, 2024, to September 9, 2024, equal to the amount of liabilities to be recorded in the liabilities section of the entity's balance sheet (including the amount of guarantee obligations) less the amount of liabilities to non-residents as of the respective dates (unless otherwise approved by the Bureau as being in the public interest or in the interest of investor protection).

** Bankruptcy filings under Chapter 11 of the U.S. Bankruptcy Code generally pertain to reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. (Source: the webpage of the U.S. Federal Courts )

The original press release is available in Japanese. open new window

Others

June 13, 2024	Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’ （June 11）
June 12, 2024	Publication of "Statistics of NISA and Junior NISA Accounts" as of March 31, 2024 <Summary> The FSA has published "Statistics of NISA (Nippon Individual Savings Account) and Junior NISA Accounts." As of March 31, 2024, there were approximately 23.2 million NISA accounts* in total, and approximately 41.6 trillion yen (approximately 267.1 billion USD) was invested through the NISA accounts. * NISA accounts in this context mean those under the "New NISA (Nippon Individual Savings Account, a revamped tax exemption program for small investment)" [introduced in January 2024], where the NISA system is made permanent. Under the New NISA system, annual investment caps are expanded and the tax-exempt holding period is made indefinite. The original press release is available in Japanese.

June 13, 2024

Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’ （June 11）

June 12, 2024

Publication of "Statistics of NISA and Junior NISA Accounts" as of March 31, 2024
<Summary>
The FSA has published "Statistics of NISA (Nippon Individual Savings Account) and Junior NISA Accounts." As of March 31, 2024, there were approximately 23.2 million NISA accounts* in total, and approximately 41.6 trillion yen (approximately 267.1 billion USD) was invested through the NISA accounts.

* NISA accounts in this context mean those under the "New NISA (Nippon Individual Savings Account, a revamped tax exemption program for small investment)" [introduced in January 2024], where the NISA system is made permanent. Under the New NISA system, annual investment caps are expanded and the tax-exempt holding period is made indefinite.

The original press release is available in Japanese. open new window

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