FSA Weekly Review No.608 October 24, 2024

FSA Weekly Review No.608: October 24, 2024

What’s New on the FSA Website

Week of October 11, 2024 - October 17, 2024

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

Public Comments

October 17, 2024	Publication of the finalized "Venture Capitals: Recommendations and Hopes, VCRHs" after public consultation <Summary> The finalized "Venture Capitals: Recommendations and Hopes, VCRHs" was published after public consultation. The finalized document, "Venture Capitals: Recommendations and Hopes, VCRHs" was compiled by the "Expert Panel on Venture Capital (VC) Funds,"* jointly held by the FSA and METI, in order to encourage the development of the VC sector by making VCs that aim to raise funds from a wide range of domestic and overseas institutional investors more attractive as an asset class that can contribute to the long-term investment. *The Expert Panel is composed of business, financial, and academic experts, with observers from financial associations, and others. The FSA serves as the secretariat. The original press release is available in Japanese.
October 15, 2024	Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Comprehensive Guidelines for Supervision and Guidelines for Administrative Processes for public consultation <Summary> The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Comprehensive Guidelines and Guidelines for Administrative Processes [hereinafter collectively referred to as the "proposal"] for public consultation. The proposal is intended to review and update the regulations* on the public inspection of public information in accordance with the "Plan for a Collective Review of Regulations in Light of Digital Principles" (provisional English title).** Public comments will be accepted until 6:00 p.m. (JST), November 14, 2024. * Regulations that require a visit to a public organization (meaning a national government agency, local government agency, or their equivalent organization), etc. for public inspection of public information in response to an application or without an application. ** The plan was compiled and published by the Temporary Digital Administrative Research Council in June 2022. The original press release is available in Japanese.

October 17, 2024

Publication of the finalized "Venture Capitals: Recommendations and Hopes, VCRHs" after public consultation
<Summary>
The finalized "Venture Capitals: Recommendations and Hopes, VCRHs" was published after public consultation.
The finalized document, "Venture Capitals: Recommendations and Hopes, VCRHs" was compiled by the "Expert Panel on Venture Capital (VC) Funds,"* jointly held by the FSA and METI, in order to encourage the development of the VC sector by making VCs that aim to raise funds from a wide range of domestic and overseas institutional investors more attractive as an asset class that can contribute to the long-term investment.

*The Expert Panel is composed of business, financial, and academic experts, with observers from financial associations, and others. The FSA serves as the secretariat.

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

October 15, 2024

Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Comprehensive Guidelines for Supervision and Guidelines for Administrative Processes for public consultation
<Summary>
The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Comprehensive Guidelines and Guidelines for Administrative Processes [hereinafter collectively referred to as the "proposal"] for public consultation.
The proposal is intended to review and update the regulations* on the public inspection of public information in accordance with the "Plan for a Collective Review of Regulations in Light of Digital Principles" (provisional English title).**
Public comments will be accepted until 6:00 p.m. (JST), November 14, 2024.

* Regulations that require a visit to a public organization (meaning a national government agency, local government agency, or their equivalent organization), etc. for public inspection of public information in response to an application or without an application.

** The plan was compiled and published by the Temporary Digital Administrative Research Council in June 2022.

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

Press Releases

Councils

October 17, 2024	Publication of the agenda of the 25th meeting of the "Expert Panel on Sustainable Finance" <Summary> The FSA published the agenda of the 25th meeting of the "Expert Panel on Sustainable Finance,"* which was held on October 18, 2024. The Expert Panel members discussed the enhancement of investment opportunities for a wide range of investors. *The Expert Panel is composed of business, financial, and academic experts, with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat. The original press release is available in Japanese.
October 16, 2024	Publication of the agenda and handouts of the second 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 second meeting of the "Working Group on Payment Services System, etc." under the Financial System Council, which was held on October 17, 2024. In the second meeting, the secretariat (i.e. the FSA) gave a briefing on the review (update), etc. of regulations on asset preservation for funds transfer service providers and regulations on the retention of funds for Type-I funds transfer services, followed by a discussion among the Working Group members. The original press release is available in Japanese.
October 15, 2024	Publication of the agenda and handouts of the second 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 second meeting of the "Working Group on Regulatory System especially for Non-Life Insurance Business" under the Financial System Council, which was held on October 16, 2024. In the second meeting, the secretariat (i.e. the FSA) gave a briefing on reviewing/updating the regulations for insurance agents, and Mr. Nakaide, a working group member, gave a briefing on comparing regulatory systems for insurance representatives in other countries, followed by a discussion among the working group members. A guest representative from Japan Insurance Brokers Association also made a presentation on the review/update of the system to encourage the use of insurance brokers. The original press release is available in Japanese.
October 11, 2024	The first meeting of the Council of Experts on the Stewardship Code (2024)

Insurance

October 17, 2024	Alert regarding the solicitation of insurance contracts by unlicensed foreign insurers <Summary> In response to the recent surge in inquiries and reports from financial service users who have been solicited by unlicensed foreign insurers in Japan to conclude insurance contracts, the FSA alerted the public to make prudent judgment before they consider purchasing insurance from a foreign insurer, by checking whether the foreign insurer is licensed* pursuant to the "Insurance Business Act" in Japan, by referring to the "List of Licensed (Registered) Financial Institutions." The FSA stresses that there is a possibility that unlicensed foreign insurers in Japan may not have the same level of protection of policyholders as insurers that are licensed and engaged in insurance business in Japan, whereby the policyholders may suffer unforeseen losses. The FSA also urges financial service users to contact the FSA's Counseling Office for Financial Services Users if they have concerns or encounter any problems after engaging in transactions with an unlicensed foreign insurer in Japan. * While a foreign insurer (an entity that conducts insurance business in a foreign country in compliance with foreign laws and regulations) is required to establish a branch office in Japan and obtain a license from the Prime Minister in order to conduct insurance business in Japan, certain types of insurance contracts can be concluded by foreign insurers who are not licensed in Japan. Details on contract types and applicable laws and regulations can be found in the Order for Enforcement of the Insurance Business Actand the Regulation for Enforcement of the Insurance Business Act.* English translation is available here. * English translation is available here. The original press release is available in Japanese.

October 17, 2024

Alert regarding the solicitation of insurance contracts by unlicensed foreign insurers
<Summary>
In response to the recent surge in inquiries and reports from financial service users who have been solicited by unlicensed foreign insurers in Japan to conclude insurance contracts, the FSA alerted the public to make prudent judgment before they consider purchasing insurance from a foreign insurer, by checking whether the foreign insurer is licensed* pursuant to the "Insurance Business Act" in Japan, by referring to the "List of Licensed (Registered) Financial Institutions."
The FSA stresses that there is a possibility that unlicensed foreign insurers in Japan may not have the same level of protection of policyholders as insurers that are licensed and engaged in insurance business in Japan, whereby the policyholders may suffer unforeseen losses.
The FSA also urges financial service users to contact the FSA's Counseling Office for Financial Services Users if they have concerns or encounter any problems after engaging in transactions with an unlicensed foreign insurer in Japan.

* While a foreign insurer (an entity that conducts insurance business in a foreign country in compliance with foreign laws and regulations) is required to establish a branch office in Japan and obtain a license from the Prime Minister in order to conduct insurance business in Japan, certain types of insurance contracts can be concluded by foreign insurers who are not licensed in Japan. Details on contract types and applicable laws and regulations can be found in the Order for Enforcement of the Insurance Business Act open new window **and the Regulation for Enforcement of the Insurance Business Act.***

** English translation is available here open new window .

*** English translation is available here open new window .

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

Others

October 15, 2024	Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’（October 15）
October 11, 2024	Twenty-first Meeting of the "Council for Cooperation on Financial Stability"
October 11, 2024	Administrative action against Eco Remit, Japan <Summary> The Kanto Local Finance Bureau took administrative action against Eco Remit, Japan (hereinafter referred to as "the entity"), a funds transfer service provider, ordering the suspension of the entity's entire business operations in regard to services associated with funds transfer services, from October 11, 2024, to April 10, 2025, and the improvement of its business operations, pursuant to the "Payment Services Act." The administrative action was mainly based on the statutory reports* filed by the entity in response to the order by the Bureau, where the entity's business management system, regulatory compliance system, AML (Anti-Money Laundering)/CFT (Countering Financing of Terrorism) risk management system, and internal control system as well as internal audit system were ascertained to have material issues, constituting a violation of the "Payment Services Act." * Statutory reports in this context refer to a notification of violation of laws and regulations filed pursuant to Article 39 of the "Cabinet Office Order on Funds Transfer Service Providers," and a report filed pursuant to Article 54 (1) of the "Payment Services Act." The original press release is available in Japanese.

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