FSA Weekly Review No.606 October 11, 2024

FSA Weekly Review No.606: October 11, 2023

What’s New on the FSA Website

Week of September 27, 2024 - October 3, 2024

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

Press Conferences

September 27, 2024	Press Conference by the Minister of State for Financial Services (September 3, 2024)

Public Comments

September 30, 2024	Publication of the draft amendments to "Points to Note for the Financial Instruments and Exchange Act (FIEA), etc." (i.e. "Guidelines for the FIEA, etc.") [provisional English title], and others for public consultation <Summary> The FSA proposed the draft amendments to the following (hereinafter collectively referred to as the "proposal") for public consultation: - "Points to Note for the Financial Instruments and Exchange Act (FIEA), etc." (i.e. "Guidelines for the FIEA, etc.") [provisional English title] - "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.," and - "Guidelines for Administrative Processes" regarding cryptoasset exchange service providers and intermediaries of so-called stablecoins. The proposal is mainly intended to clarify cases, where it may be considered illegal for a person who is not registered as a financial instruments business operator (FIBO), a cryptoasset exchange service provider, or an intermediary of so-called stable coins, etc., to place false advertisements, etc. on the Internet. The proposal is in conjunction with the "Holistic Measures to Protect the Public from Fraud" (provisional English title) [available only in Japanese], published by the Ministerial Meeting Concerning Measures against Crime under the Prime Minister's Office of Japan, which set out the need to "clarify that the posting of false advertisements by an unregistered FIBO, etc. can be considered an act of illegal financial instruments business" as part of the measures against false advertisements that lead to fraudulent investment websites. Public comments will be accepted until 5:00 p.m. [JST], October 31, 2024. The original press release is available in Japanese at the following URL.
September 27, 2024	Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc." after public consultation <Summary> The FSA published the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc." after public consultation. The finalized Cabinet Office Order provides amendments to the criteria for exempting the decisions made by the business execution decision-making body of a listed company, etc., regarding the issuance of shares, etc., as stock-based compensation, from the scope of material facts under the insider trading regulation. In particular, the criteria has been amended to allow the exemption for the said decisions in one of the following cases: - The share dilution ratio is expected to be less than one percent. - The total value (market value) of the shares is expected to be less than JPY 100 million. In conjunction with the finalization of the said Cabinet Office Order, the prescription of "Question 7" in the "Answers to Frequently Asked Questions" regarding the application of insider trading regulation [available only in Japanese] (hereinafter referred to as the "FAQs") was updated. The finalized Cabinet Office Order will be enforced on April 1, 2025, whereas the updated FAQs will take effect on the same date. * A summary of the 37 comments received through the public consultation and the FSA's perspective on those comments presenting the existing and the amended in the said Cabinet Office Order are available only in Japanese. The original press release is available in Japanese at the following URL.

September 30, 2024

Publication of the draft amendments to "Points to Note for the Financial Instruments and Exchange Act (FIEA), etc." (i.e. "Guidelines for the FIEA, etc.") [provisional English title], and others for public consultation
<Summary>
The FSA proposed the draft amendments to the following (hereinafter collectively referred to as the "proposal") for public consultation:

- "Points to Note for the Financial Instruments and Exchange Act (FIEA), etc." (i.e. "Guidelines for the FIEA, etc.") [provisional English title]

- "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.," and

- "Guidelines for Administrative Processes" regarding cryptoasset exchange service providers and intermediaries of so-called stablecoins.

The proposal is mainly intended to clarify cases, where it may be considered illegal for a person who is not registered as a financial instruments business operator (FIBO), a cryptoasset exchange service provider, or an intermediary of so-called stable coins, etc., to place false advertisements, etc. on the Internet.

The proposal is in conjunction with the PDF

"Holistic Measures to Protect the Public from Fraud" open new window

(provisional English title) [available only in Japanese], published by the Ministerial Meeting Concerning Measures against Crime under the Prime Minister's Office of Japan, which set out the need to "clarify that the posting of false advertisements by an unregistered FIBO, etc. can be considered an act of illegal financial instruments business" as part of the measures against false advertisements that lead to fraudulent investment websites.

Public comments will be accepted until 5:00 p.m. [JST], October 31, 2024.

The original press release is available in Japanese at the following URL. open new window

September 27, 2024

Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc." after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc." after public consultation.
The finalized Cabinet Office Order provides amendments to the criteria for exempting the decisions made by the business execution decision-making body of a listed company, etc., regarding the issuance of shares, etc., as stock-based compensation, from the scope of material facts under the insider trading regulation.
In particular, the criteria has been amended to allow the exemption for the said decisions in one of the following cases:

- The share dilution ratio is expected to be less than one percent.

- The total value (market value) of the shares is expected to be less than JPY 100 million.

In conjunction with the finalization of the said Cabinet Office Order, the prescription of "Question 7" in the PDF

"Answers to Frequently Asked Questions" open new window

regarding the application of insider trading regulation [available only in Japanese] (hereinafter referred to as the "FAQs") was updated.

The finalized Cabinet Office Order will be enforced on April 1, 2025, whereas the updated FAQs will take effect on the same date.

* A summary open new window of the 37 comments received through the public consultation and the FSA's perspective on those comments presenting the existing and the amended in the said Cabinet Office Order are available only in Japanese.

The original press release is available in Japanese at the following URL. open new window

Press Releases

International

October 3, 2024	Exchange of Letters for Cooperation with the Cambodia Non-Bank Financial Services Authority (CFSA)
October 2, 2024	The Second Asia High-level Financial Regulators' Forum
October 2, 2024	Asia GX（Green Transformation）Consortium announces its official launch

Councils

October 3, 2024	The fourth meeting of the Working Group on Disclosure and Assurance of Sustainability-related Financial Information (of the Financial System Council)

Banks

September 30, 2024	Overview of modifications to lending conditions by financial institutions <Summary> The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020 to August 31, 2024. * The majority of the data reflects the data until August 31, 2024, whereas the data of cooperative financial institutions reflects the data until June 30, 2024. The original press release is available in Japanese at the following URL.

September 30, 2024

Overview of modifications to lending conditions by financial institutions
<Summary>
The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020 to August 31, 2024.

* The majority of the data reflects the data until August 31, 2024, whereas the data of cooperative financial institutions reflects the data until June 30, 2024.

The original press release is available in Japanese at the following URL. open new window

Others

October 3, 2024	Call for participation in a questionnaire survey on the status of use of AI (Artificial Intelligence) by financial institutions, etc. <Summary> The FSA announced a call for participation in a questionnaire survey on the status of use of AI (Artificial Intelligence) by financial institutions, etc. The FSA aims to call for a wide range of responses to the questionnaire survey across the financial sector until mid-November 2024, where after the responses will be reflected in a discussion paper to be developed by the FSA in due course. The original press release is available in Japanese at the following URL.
October 2, 2024	Updated : Trends in High-Speed Trading
October 1, 2024	Establishment of a point of contact to receive information on SNS (Social Networking Service) advertisements and other displays, that are intended to defraud investors <Summary> As one of the measures based on the "Holistic Measures to Protect the Public from Fraud" (provisional English title) [available only in Japanese], published by the Ministerial Meeting Concerning Measures against Crime under the Prime Minister's Office of Japan on June 18, 2024, the FSA has established a point of contact to receive information on SNS (Social Networking Service) advertisements and other displays, that are intended to defraud investors, including false advertisements impersonating or using the names of celebrities, etc., thereby enabling the FSA to take action in cooperation with SNS operators, and so forth. Note: The point of contact only accepts information and does not respond to any inquiries regarding the information provided. Inquiries and/or consultation on individual cases are accepted at the FSA's Counseling Office for Financial Services Users. Furthermore, whistleblower-reports from outside workers based on the "Whistleblower Protection Act" are NOT accepted here, but are accepted by the point of contact for whistleblowers.(Services are available only in Japanese). The original press release is available in Japanese at the following URL.
September 30, 2024	Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’
September 27, 2024	Activities of the FSA's Counseling Office for Financial Services Users for the period between April 1 and June 30, 2024 <Summary> The FSA's Counseling Office for Financial Services Users offers a counseling service to respond to inquiries and comments from financial services users. Between April 1 and June 30, 2024, the counseling office received 11,878 inquiries and comments, a decrease from 13,218 cases in the previous quarter (between January 1 and March 31, 2024) The original press release is available in Japanese at the following URL.
September 27, 2024	Publication of the list of “financial service providers” (as of July 12, 2024) and an analysis report on the common KPIs (as of March 31, 2024) <Summary> The FSA updated the list of “financial service providers” who reported the status of their initiatives and efforts in a predetermined way based on the "Principles for Customer-Oriented Business Conduct" as of July 12, 2024. The FSA also published an updated trend analysis report on the common KPIs comparable across investment trust and foreign currency-denominated insurance distributors reported by the respective financial service providers as of March 31, 2024. The original press release is available in Japanese at the following URL.

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