FSA Weekly Review No.597 August 1, 2024

FSA Weekly Review No.597: August 1, 2024

What’s New on the FSA Website

Week of July 19, 2024 - July 25, 2025

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

Press Releases

Councils

July 24, 2024	Publication of the agenda, handouts, and an outline of proceedings of the eleventh 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 eleventh meeting of the Advisory Council, which was held on June 10, 2024. In the eleventh meeting, participants exchanged opinions on the draft report (available only in Japanese) compiling initiatives and efforts taken by business operators (listed companies) in the private sector as well as the relevant and competent ministries and agencies, etc. * 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)
July 19, 2024	Publication of the agenda and handouts of the tenth meeting of the "Taskforce on Preparation of the Environment for Transition Finance" <Summary> The FSA published the agenda and handouts of the tenth meeting of the "Taskforce on Preparation of the Environment for Transition Finance," which was jointly held on July 16, 2024, by the FSA, METI (Ministry of Economy, Trade and Industry), and the MoE (Ministry of the Environment). Amid growing attention to transition finance in Japan and abroad, the Taskforce members reported on and discussed domestic and international trends in transition finance and initiatives to further promote and encourage the adoption of transition finance among businesses. Furthermore, the Taskforce members resumed discussions from the previous meeting on the way forward to the revision of the "Basic Guidelines on Climate Transition Finance," in response to the revised "Climate Transition Finance Handbook" published by the International Capital Market Association (ICMA) in June 2023. The original press release is available in Japanese.

July 24, 2024

Publication of the agenda, handouts, and an outline of proceedings of the eleventh 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 eleventh meeting of the Advisory Council, which was held on June 10, 2024.
In the eleventh meeting, participants exchanged opinions on the PDF

draft report

(available only in Japanese) compiling initiatives and efforts taken by business operators (listed companies) in the private sector as well as the relevant and competent ministries and agencies, etc.

* 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) open new window

(2)

July 19, 2024

Publication of the agenda and handouts of the tenth meeting of the "Taskforce on Preparation of the Environment for Transition Finance"
<Summary>
The FSA published the agenda and handouts of the tenth meeting of the "Taskforce on Preparation of the Environment for Transition Finance," which was jointly held on July 16, 2024, by the FSA, METI (Ministry of Economy, Trade and Industry), and the MoE (Ministry of the Environment).
Amid growing attention to transition finance in Japan and abroad, the Taskforce members reported on and discussed domestic and international trends in transition finance and initiatives to further promote and encourage the adoption of transition finance among businesses.
Furthermore, the Taskforce members resumed discussions from the previous meeting on the way forward to the revision of the "Basic Guidelines on Climate Transition Finance," in response to the revised "Climate Transition Finance Handbook" published by the International Capital Market Association (ICMA) in June 2023.

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

Banks

July 25, 2024	Publication of a research report on a survey across major banks and regional banks regarding domestic practices of LBO (Leveraged Buyout) loans <Summary> In response to the increasing number of financial institutions engaging in LBO (Leveraged Buyout) financing, the FSA conducted a quick questionnaire survey across major banks and regional banks to broadly ascertain the status of initiatives and management practices/schemes taken by such banks for domestic LBO loans,* and published a compiled research report (available only in Japanese). The FSA intends to keep encouraging financial institutions to upgrade their risk management systems for LBO loans, based on the results of the questionnaire survey. * LBO loans are generally considered to carry higher credit risk than conventional corporate loans, where financial institutions need to take into account their own corporate strengths when formulating their LBO loan policies and balance and revenue targets. The establishment of a risk management system is therefore imperative for financial institutions, including the screening of corporate borrowers and periodic loan management that is commensurate with the corporate borrowers' business strategies, and to operate the risk management system appropriately. The original press release is available in Japanese.

July 25, 2024

Publication of a research report on a survey across major banks and regional banks regarding domestic practices of LBO (Leveraged Buyout) loans
<Summary>
In response to the increasing number of financial institutions engaging in LBO (Leveraged Buyout) financing, the FSA conducted a quick questionnaire survey across major banks and regional banks to broadly ascertain the status of initiatives and management practices/schemes taken by such banks for domestic LBO loans,* and published PDF

a compiled research report

(available only in Japanese).
The FSA intends to keep encouraging financial institutions to upgrade their risk management systems for LBO loans, based on the results of the questionnaire survey.

* LBO loans are generally considered to carry higher credit risk than conventional corporate loans, where financial institutions need to take into account their own corporate strengths when formulating their LBO loan policies and balance and revenue targets. The establishment of a risk management system is therefore imperative for financial institutions, including the screening of corporate borrowers and periodic loan management that is commensurate with the corporate borrowers' business strategies, and to operate the risk management system appropriately.

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

Others

July 25, 2024	Request for financial measures to deal with disasters caused by the heavy rain from July 25, 2024 (The Tohoku Local Finance Bureau) <Summary> The following Local Finance Branch Bureaus of Tohoku Local Finance Bureau alongside the competent Branches of the Bank of Japan issued statements titled "Financial Measures to Deal with Disasters Caused by the Heavy Rain from July 25, 2024" to the relevant financial institutions: - The Akita Local Finance Branch Bureau of the Tohoku Local Finance Bureau alongside the Akita Branch of the Bank of Japan (Statement issued as of July 25, 2024) - The Yamagata Local Finance Branch Bureau of the Tohoku Local Finance Bureau alongside the Sendai Branch of the Bank of Japan (Statement issued as of July 25, 2024) The said statements (available only in Japanese) request financial institutions in Akita and Yamagata prefectures* to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible. * Matters related to financial measures in Akita and Yamagata prefectures fall within the purview of the Tohoku Local Finance Bureau. Disaster-affected areas in the said prefectures are currently subject to the "Disaster Relief Act." If more areas in the prefecture become subject to the said Act, financial institutions in the prefecture will be requested to take measures in the same manner as above accordingly. The original press release is available in Japanese.
July 24, 2024	Updated lists of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau) <Summary> The FSA and the Kanto Local Finance Bureau issued warnings to entities that are operating financial instruments businesses without proper registration. (See the updated lists of Japan-based entities and foreign-based entities). These lists also include the warned non-registered entities with untraceable/unidentified addresses. (Postal and/or web addresses on the list of the warned non-registered foreign-based entities reflect those shown on their respective webpages, not necessarily the addresses that could be traced and identified). The original press release is available in Japanese.
July 23, 2024	Updated web portal alerting investment scams involving SNS (Social Network Services), etc. <Summary> In response to a video posted on the website of the Government of Japan's Public Relations Office on July 12, 2024, aimed at raising awareness about investment scams involving SNS (Social Network Services), the FSA shared the video link (available only in Japanese) on its web portal(available only in Japanese) for information on scam alerts, etc. related to financial products, including crypto-assets (virtual currencies) and FX (Foreign Exchange), in which people are being solicited to invest in such financial products by people they meet on SNS, dating apps, etc., or by people who impersonate or use the names of celebrities through fake online-advertisements, and are having trouble withdrawing their funds, etc. as a result of trading with the foreign business operators they have been introduced to. The FSA alerts the public to make prudent judgment when they receive investment solicitations from a person/entity they have met through SNS, dating apps, or other services/apps, thereby checking whether the person/entity soliciting investment is registered as a crypto asset exchange service provider or financial instruments business operator, etc., by referring to the "List of Licensed (Registered) Financial Institutions." Moreover, the FSA urges financial services users to report to (and/or consult with) the authorities (such as the police or the FSA's Counseling Office for Financial Services Users) whenever any sign of fraudulence is detected. The original press release is available in Japanese.
July 19, 2024	Launch of a project team for the promotion of cash flow-based lending <Summary> The FSA launched a project team for the promotion of cash flow-based lending. The project team intends to: - promote communication with the financial sector and business operators regarding the "Act on the Promotion of Cash Flow-Based Lending" - consider issues related to lending practices - develop relevant and applicable ministerial orders, etc., and - discuss future responses to be taken in terms of monitoring (inspection) and supervision. The original press release is available in Japanese.

Site Map

About FSA Page list Open: Ministerial Team; Organization; Location; Pamphlet; Open Policy Lab
Press Releases & Public Relations Page list Open: Press Releases; Press Conferences; Official Statements; FSA Weekly Review & ACCESS FSA; Speeches; For Financial Users; Others; Archives
Policies & Councils Page list Open: Policies; Councils
Laws & Regulations Page list Open: Name of Laws and Regulations(PDF); Recent Changes (Legislation, Ordinances, Guidelines); Guidelines; Financial Instruments and Exchange Act; Financial Monitoring Policy; Public Comment; No-Action Letter System; Procedures concerning Foreign Account Management Institutions
Regulated Institutions Page list Open: List of Institutions; Administrative Action; Statistics; For those engaging in High Speed Trading; To Operators of Specially Permitted Businesses for Qualified Institutional Investors, etc.; Asia Region Funds Passport (ARFP)
FSA Weekly Review & ACCESS FSA Page list Open: Back Number (2022); Back Number (2021); Back Number (2020)

top of page