Financial Services AgencyFSA Weekly Review No.605

October 3, 2024

What’s New on the FSA Website

Week of September 20, 2024 - September 26, 2024

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

Public Comments

September 26, 2024 Publication of the finalized amendments to the "Principles for Customer-Oriented Business Conduct" after public consultation
<Summary>
The FSA finalized the amendments to the "Principles for Customer-Oriented Business Conduct" after public consultation.
The finalized amendments mainly reflect the recommendations made in the PDF"Report of the Working Group on Financial Markets of the Financial System Council – Toward the Establishment of Financial Product Governance"open new window (provisional English report title) [available only in Japanese] published on July 2, 2024, by the said Working Group.

The original press release is available in Japanese.open new window
September 20, 2024 Publication of the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Shinkin Bank Act” and others after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Shinkin Bank Act" and others pertaining to the LEX (Large Exposures) Framework after public consultation.
The finalized Cabinet Office Order mainly sets forth the development of calculation methods for exposures in trading accounts at Shinkin banks, etc., and to provide other necessary consequential amendments. 
The finalized Cabinet Office Order will be enforced on 31 March 2025.

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

Press Releases

Publication

September 20, 2024 PDFFSA publishes English translation of monthly magazine, Access FSA No.250

Councils

September 26, 2024 Publication of the agenda and handouts of the first meeting of the "Working Group on Regulatory System especially for Non-Life Insurance Business" under the Financial System Council
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Working Group on Regulatory System especially for Non-Life Insurance Business" under the Financial System Council, which was held on September 27, 2024.
In the first meeting, the secretariat (i.e. the FSA) and the General Insurance Association of Japan gave a briefing on the overview of the current status of the non-life insurance market and the non-life insurance business sector, as well as initiatives and efforts that are to be taken to ensure credibility and sound development in the insurance market, followed by a discussion among the Working Group members.

The original press release is available in Japanese.open new window
September 24, 2024 Publication of the agenda and handouts of the first meeting of the "Working Group on Payment Services System, etc." under the Financial System Council
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Working Group on Payment Services System, etc." under the Financial System Council, which was held on September 25, 2024.
In the first meeting, the secretariat (i.e. the FSA) gave a briefing on the current status and issues associated with remittances, payment, and credit services, followed by a discussion among the Working Group members.

The original press release is available in Japanese.open new window
September 20, 2024 Publication of the outlines of proceedings of the 32nd meeting of the Examination Board on Strengthening of Financial Functions
<Summary>
The FSA published the outlines of proceedings of the 32nd meeting of the Examination Board on Strengthening of Financial Functions pursuant to Article 8 of the Operational Rules for the Board.

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

Banks

September 24, 2024 The FSA publishes the status of loans held by all banks as of the end of March 2024, based on the Financial Reconstruction Act
September 20, 2024 Publication of the implementation reports of the Business Strengthening Plans and the relevant plans filed by financial institutions (as of March 2024)
<Summary>
The FSA published the implementation reports of the Business Strengthening Plans and the relevant plans filed by financial institutions (as of March 2024) pursuant to the "Act on Special Measures for Strengthening Financial Functions."

The original press release is available in Japanese.open new window
September 20, 2024 Approval of the Business Strengthening Plans of financial institutions
<Summary>
Upon receipt of the amended Business Strengthening Plan from Kirayaka Bank, Ltd. along with Jimoto Holdings, Inc., in regard to the application for the special provisions concerning the COVID-19 pursuant to the "Act on Special Measures for Strengthening Financial Functions," the FSA approved the plan after conducting a review and assessment.

At the same time, upon receipt of the Business Strengthening Plans filed newly from Kirayaka Bank, Ltd. and THE SENDAI BANK, LTD. along with Jimoto Holdings, Inc., in regard to the application for the special provisions concerning the Great East Japan Earthquake pursuant to the "Act on Special Measures for Strengthening Financial Functions," the FSA approved the plans after conducting a review and assessment.

In addition, the FSA published the Business Strengthening Plans and the Business Management Enhancement Guidance Plans filed by the following shinkumi banks:

・Yamanashi Kenmin Shinkumi Bank alongside the Shinkumi Federation Bank (central body for Japan credit cooperatives), and

・Gunmamirai Shinkumi Bank alongside the Shinkumi Federation Bank.


The original press release is available in Japanese.open new window
September 20, 2024 Approval of the implementation plans filed by The Fukui Bank, Ltd. alongside THE FUKUHO BANK, LTD., and THE SHONAI BANK, LTD. alongside The Hokuto Bank, Ltd., in regard to the application for the "fund-grant system" pursuant to the "Act on Special Measures for Strengthening Financial Functions"
<Summary>
Upon receipt of the "implementation plans" from The Fukui Bank, Ltd. alongside THE FUKUHO BANK, LTD., and THE SHONAI BANK, LTD. alongside The Hokuto Bank, Ltd., in regard to the application for the "fund-grant system" pursuant to the "Act on Special Measures for Strengthening Financial Functions," the FSA approved the plans after conducting a review and assessment.

The original press release is available in Japanese.open new window
September 20, 2024 Publication of implementation reports in regard to the "fund-grant system" filed by financial institutions (as of March 2024)
<Summary>
The FSA published five implementation reports in regard to the "fund-grant system" respectively filed by the following parties (as of March 2024), pursuant to the "Act on Special Measures for Strengthening Financial Functions"
(1) THE FUKUHO BANK, LTD.,
(2) The Aomori Bank, Ltd. alongside THE MICHINOKU BANK, LTD.
(3) The Aichi Bank, Ltd. alongside The Chukyo Bank, Limited.
(4) The Hachijuni Bank, Ltd. alongside THE NAGANO BANK, LTD., and
(5) Habataki Shinkumi Bank.

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

Others

September 26, 2024 Administrative action against Kabushiki Kaisha DMM Bitcoin (The Kanto Local Finance Bureau)
<Summary>
The Kanto Local Finance Bureau took administrative action against Kabushiki Kaisha DMM Bitcoin,* a crypto-asset exchange service provider, pursuant to the "Payment Services Act," ordering the improvement of its business operations.
The administrative action is based on findings from an onsite inspection conducted by the Bureau, where the entity was found to have material issues in terms of ensuring the appropriateness of the information system risk management system and of the response to the outflow** risk of crypto-assets.
 

* 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.

** On May 13, 2024, cryptoassets (BTC) managed by the entity were illegally transmitted outside the entity, resulting in the outflow of 4,502.9 BTC of customers' assets.


The original press release is available in Japanese.open new window
September 26, 2024 Request statement to cryptoasset exchange service providers to take appropriate response to outflow risks of cryptoassets, etc.
<Summary>
In response to the recent incident of an outflow of cryptoassets occurred in May 2024, the FSA issued a request statement to Japan Virtual and Crypto assets Exchange Association to raise awareness of cryptoasset exchange service providers on their response to the outflow risk of cryptoassets and ensure that they conduct self-inspection, mainly in terms of the following:

1. Awareness and involvement of the corporate management, and
2. Management system for crypto assets.

The original press release is available in Japanese.open new window
September 25, 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 EXCELJapan-based entitiesopen new window and EXCELforeign-based entitiesopen new window).
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.open new window
September 24, 2024 Prime Minister Kishida's Speech at Bloomberg-hosted event in NY
September 24, 2024 Request for financial measures to deal with disasters caused by the heavy rain associated with a low-pressure system and a front (The Hokuriku Local Finance Bureau)
<Summary>
The Hokuriku Local Finance Bureau alongside the Kanazawa Branch of the Bank of Japan issued a statement titled PDF"Financial Measures to Deal with Disasters Caused by the Heavy Rain Associated with a Low-Pressure System and a front"open new window (available only in Japanese) to the relevant financial institutions:
The statement requests financial institutions in Ishikawa prefecture* 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 Ishikawa prefecture fall within the purview of the Hokuriku Local Finance Bureau.
Disaster-affected areas in Ishikawa prefecture 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.open new window

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