Financial Services AgencyFSA Weekly Review No.618

January 10, 2025

What’s New on the FSA Website

Week of December 20, 2024 - December 27, 2024

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

Press Conferences

December 27, 2024 Press Conference by the Minister of State for Financial Services (December 17, 2024)
December 20, 2024 Press Conference by the Minister of State for Financial Services (December 13, 2024)
December 20, 2024 Press Conference by the Minister of State for Financial Services (December 10, 2024)

Public Comments

December 27, 2024 Publication of the draft "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements," etc. for public consultation
<Summary>
The FSA proposed the draft "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements," etc. (hereinafter referred to as the "proposal") for public consultation. 
The proposal is mainly intended to provide necessary/consequential amendments to the matters to be considered in handling the Regulation on Financial Statements, Guidelines for the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" and other guidelines for other relevant and applicable regulations, in response to the PDFASBJ (Accounting Standards Board of Japan) Exposure Draft of Accounting Standard No.82open new window [available only in Japanese] that is intended to amend the PDFASBJ Statement No.27open new window [available only in Japanese] pertaining to the "Accounting Standard for Corporate Taxes, Inhabitants Taxes, and Enterprise Taxes" and other applicable accounting standards.
Public comments will be accepted until 5:00 p.m. [JST], January 27, 2025.

The original press release is available in Japanese.open new window
December 25, 2024 Publication of the finalized amendments to the regulatory notice designating recipients of provided information where the provision of information constitutes high-speed trading after public consultation
<Summary>
The FSA has published the finalized amendments to the regulatory notice designating recipients (destination) of provided information where the provision of information constitutes high-speed trading after public consultation.
The finalized amendments add Japan Alternative Market Co., Ltd. to the list of recipients of provided information where the provision of information constitutes high-speed trading, pursuant to the provisions of Article 26 (1) of the "Cabinet Office Order on Definitions under Article 2 of the Financial Instruments and Exchange Act."
The finalized amendments took effect on December 26, 2024.

The original press release is available in Japanese.open new window
December 24, 2024 Publication of the draft "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements," etc. for public consultation
<Summary>
The FSA proposed the draft "Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements" (hereinafter referred to as the "proposal") for public consultation. 
The proposal is mainly intended to provide necessary/consequential amendments to the matters to be considered in handling the Regulation on Financial Statements, Guidelines for the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" and other guidelines for other relevant and applicable regulations, in response to ASBJ (Accounting Standards Board of Japan) Statement No. 34, Accounting Standard for Leasesopen new window (available only in Japanese) and other relevant ASBJ's statements.
Public comments will be accepted until 6:00 p.m. [JST], January 24, 2025.

The original press release is available in Japanese.open new window
December 20, 2024 Publication of the draft amendments to the "Cabinet Office Order on Financial Instruments Business, etc." and others for public consultation
<Summary>
The FSA proposed the draft amendments to the "Cabinet Office Order on Financial Instruments Business, etc." and others (hereinafter collectively referred to as the "proposal") for public consultation.
The proposal is mainly intended to require financial institutions to provide information to their clients on matters pertaining to potential conflicts of interest with their clients.

Public comments will be accepted until 5:00 p.m. (JST), January 21, 2025.

The original press release is available in Japanese.open new window
December 20, 2024 Publication of the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act” and others for public consultation
<Summary>
The FSA published the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" and others (hereinafter collectively referred to as the "proposal") for public consultation.
In regard to the appended forms of the "Regulation for Enforcement of the Banking Act" and others,* the proposal is intended to add an account, titled "Corporation Taxes on International Minimum Taxable Value (Tax Base Amount)" [provisional English title] to the profit and loss statement, in response to amendments to "Practical Solution No.46, the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rulesopen new window (available only in Japanese) [published by the Accounting Standards Board of Japan (ASBJ) on March 22, 2024] and to the "Regulation on Terminology, Forms and Preparation Methods of Financial Statements" (Ministry of Finance Order No.59 of 1963), etc.
In addition, the proposal also intends to amend the appended form of the "Regulation for Enforcement of the Shinkin Bank Act" to make it unnecessary to fill in the columns for individuals and corporations with respect to "undisposed interests"** in a statutory business report (i.e. "gyomu-hokokusho" in Japanese), etc.

Public comments will be accepted until 5:00 p.m. [JST], January 20, 2024.

*Others include the following:

- the "Regulation for Enforcement of the Shinkin Bank Act"

- the "Regulation for Enforcement of the Insurance Business Act"

- the "Regulation for Enforcement of the Norinchukin Bank Act," and 

- the "Regulations for Enforcement of the Shoko Chukin Bank Limited Act" that are within the purview of Ministry of Economy, Trade and Industry, Ministry of Finance, and the Cabinet Office, respectively.
 

** An undisposed interest is an interest that remains in a (cooperative) partnership due to a withdrawal by a partner.


The original press release is available in Japanese.open new window
December 20, 2024 Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" and to other relevant and applicable comprehensive guidelines for public consultation
<Summary>
The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" and to other relevant and applicable comprehensive guidelines* (hereinafter collectively referred to as the "proposal") for public consultation.
In the case where an advanced banking service company changes the content of its business or newly engages in a business different from the business concerned, if there is no significant change in the business, etc., the proposal mainly intends to make it sufficient to report after the start of the new business, etc., thereby setting forth such matters in the Comprehensive Guidelines for Supervision, etc. as the content and points to be noted in such reporting.
Public comments will be accepted until 5:00 p.m. (JST), January 24, 2025. 

*Other relevant and applicable guidelines are as follows:
- Comprehensive Guidelines for Supervision of Major Banks, etc.
- Comprehensive Guidelines for Supervision of Cooperative Financial Institutions (provisional English title), and
- Comprehensive Guidelines for Supervision of Insurance Companies.

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

Press Releases

Policies

December 27, 2024 Publication of the FSA Annual Report for program year 2023 (July 2023 - June 2024)
<Summary>
The FSA published the FSA Annual Report for program year 2023 (July 2023 - June 2024) [available only in Japanese]. It covers the FSA's overall policies including its mission, organization, and measures including amendments of regulations and supervisory actions.

The original press release is available in Japanese.open new window
December 27, 2024 Publication of the "Key FSA-Related Items in the Outline for the FY 2025 Tax Reform"
<Summary>
Based on the cabinet decision made on December 27, 2024, in regard to the outline for the FY 2025 Tax Reform, the FSA published the PDF"Key FSA-Related Items in the Outline for the FY 2025 Tax Reform"open new window (available only in Japanese).

The original press release is available in Japanese.open new window
December 27, 2024 Publication of the request for budget, organization, and staff for FY 2025 (draft)
<Summary>
The FSA published a PDF(draft) overview of the request for budget, organization, and staff for FY 2025open new window (available only in Japanese).

The original press release is available in Japanese.open new window
December 26, 2024 "Japan Fintech Week 2025” official website has been updated.
December 23, 2024 Publication of "FSA Strategic Priorities: July 2024 - June 2025"

Councils

December 25, 2024 Publication of a "Report of the Working Group on Regulatory System Especially for Non-Life Insurance Business"
<Summary>
The FSA published a PDF"Report of the Working Group on Regulatory System Especially for Non-Life Insurance Business"open new window (available only in Japanese), a summary of discussions of the meetings held six times between September and December 2024, compiled by the working group under the Financial System Council.

The report will hereafter be presented at the general meeting of the Financial System Council and the meeting of the Sectional Committee on Financial System.

The original press release is available in Japanese.open new window
December 23, 2024 Publication of the agenda and handouts of the seventh 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 seventh meeting of the "Working Group on Payment Services System, etc." under the Financial System Council, which was held on December 24, 2024.
In the seventh meeting, the secretariat (i.e. the FSA) gave a briefing on the PDF"Draft Report of the Working Group on Payment Services System, etc."open new window (available only in Japanese), a summary of discussions of the meetings held seven times between September and December 2024, compiled by the working group, followed by a discussion among the working group members.

The original press release is available in Japanese.open new window
December 20, 2024 Publication of the agenda and handouts of the first meeting of the "Networking Group on Environmental Preparation for Disclosure of Annual Securities Reports Before Annual General Meetings" 
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Networking Group on Environmental Preparation for Disclosure of Annual Securities Reports Before Annual General Meetings," which was held on December 20, 2024. 
In the first meeting, the secretariat (i.e. the FSA) gave a briefing on the usefulness, current status, and key issues regarding the disclosure of annual securities reports before annual general meetings, followed by a discussion among the networking group members.

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

Banks

December 26, 2024 Publication of a reference casebook of financial institutions' explanation process (explanation steps) when requesting personal guarantee from business owners, and monitoring, etc. (provisional English title)
<Summary>
The FSA compiled and published a PDFReference casebook of financial institutions' explanation process (explanation steps) when requesting personal guarantee from business owners, and monitoring thereto, etc." (provisional English title)open new window (available only in Japanese).
The reference casebook is based on the information the FSA has collected through interviews with financial institutions and other means, covering their initiatives in terms of the following: 

- "explanation process (explanation steps) when requesting (personal) guarantee from business owners"

- "handling of loans guaranteed/insured by credit guarantee corporations"

- "monitoring by the headquarters or responsible departments," and

- "internal audits."
 

Note: The reference case book is based on materials filed by financial institutions, where the evaluations for the initiatives therein reflect the views of the financial institutions that prepared the materials and do not represent the views of the FSA.

The original press release is available in Japanese.open new window
December 26, 2024 Publication of a statistical report on financing for enterprises by financial institutions in the private sector utilizing the "Guidelines for Personal Guarantee Provided by Business Owners"
<Summary>
The FSA published a statistical report on financing for enterprises by financial institutions in the private sector utilizing the "Guidelines for Personal Guarantee Provided by Business Owners." The report reflects the period between April 1, 2024, and September 30, 2024 (first half of FY2024). (The report is regularly published to further promote the utilization of the Guidelines).

The original press release is available in Japanese.open new window
December 25, 2024 Publication of a summary of the survey on financial institutions' preventive measures against unlawful reimbursement of deposits (as of the end of March 2024)
<Summary>
The FSA published a EXCELsummary of the survey on financial institutions' preventive measures against unlawful reimbursement of deposits as of March 31, 2024 (the end of FY 2023)open new window [available only in Japanese]. In order to grasp the status of the enforcement of the "Act on Protection of Depositors and Postal Saving Holders from Unauthorized Automated Withdrawal, Using Counterfeit Cards, and Stolen Cards," the FSA collects information annually from financial institutions and publishes the summary.

The original press release is available in Japanese.open new window
December 24, 2025 Publication of presentation materials and the summary of discussions for the meeting that aims to support recovery of businesses affected by the Noto Peninsula Earthquake in 2024
<Summary>
The FSA published presentation materials and the summary of discussions for the meeting that aims to support recovery of businesses affected by the Noto Peninsula Earthquake in 2024, which was held on December 11, 2024.
The participants actively exchanged opinions to strengthen the cooperation among relevant institutions for strongly supporting recovery from the earthquake.

The original press release is available in Japanese.open new window
December 24, 2024 Authorization of the merger of Japan The Aichi Bank, Ltd. and The Chukyo Bank, Limited
<Summary>
The FSA authorized the merger of The Aichi Bank, Ltd. and The Chukyo Bank, Limited pursuant to the "Banking Act." The merger took effect on January 1, 2025, and the corporate name of the merged bank has become The Aichi Bank, Ltd.

The original press release is available in Japanese.open new window
December 20, 2024 Publication of a progress report on Business Revitalization Plans
<Summary>
The FSA published a report on the progress of business revitalization filed by SBI Shinsei Bank, Limited* as of September 30, 2024, pursuant to the "Act on Emergency Measures for Early Strengthening of Financial Functions."
*This trade name was formerly Shinsei Bank, Ltd., and was changed to SBI Shinsei Bank, Limited on January 4, 2023.

The original press release is available in Japanese.open new window
December 20, 2024 Authorization of the merger of Japan The Aomori Bank, Ltd. and THE MICHINOKU BANK, LTD.
<Summary>
The FSA authorized the merger of The Aomori Bank, Ltd. and THE MICHINOKU BANK, LTD. pursuant to the "Banking Act." The merger took effect on January 1, 2025, and the corporate name of the merged bank has become Aomori Michinoku Bank, Ltd.

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

Securities

December 25, 2024 Publication of the updated regulatory notice designating an electronic data processing system pursuant to the provisions of Article 6-2, paragraph (2) of the "Order for Enforcement of the Financial Instruments and Exchange Act" 
<Summary>
The FSA has published the updated regulatory notice designating an electronic data processing system pursuant to the provisions of Article 6-2, paragraph (2) of the "Order for Enforcement of the Financial Instruments and Exchange Act."
The updated regulatory notice sets forth that the transactions of listed securities in the PTS (Proprietary Trading System) operated by Japan Alternative Market shall be exempt from the application of so-called 5% rule for tender offers (cf. Article 27-2, paragraph (1), item (i) of the said Act).
The updated regulatory notice took effect on December 25, 2024.

The original press release is available in Japanese.open new window
December 20, 2024 Administrative monetary penalty against an individual for recommending the purchase of stocks of Alphax Food System Co., LTD to non-insiders (retail investors) based on insider information obtained as a contract negotiator with Alphax Food System Co., LTD
<Summary>
On December 19, 2024, the FSA issued an order to impose an administrative monetary penalty against an individual for recommending the purchase of stocks of Alphax Food System Co., LTD to non-insiders (retail investors) based on insider information obtained as a contract negotiator with Alphax Food System Co., LTD.

The original press release is available in Japanese.open new window
December 20, 2024 Administrative monetary penalties against individuals who committed insider trading regarding stocks of Alphax Food System Co., LTD by using information received from a contract negotiator with Alphax Food System Co., LTD
<Summary>
On December 19, 2024, the FSA issued orders to impose administrative monetary penalties against three individuals for committing insider trading regarding stocks of Alphax Food System Co., LTD, in violation of the "Financial Instruments and Exchange Act," by using information received from a contract negotiator with Alphax Food System Co., LTD.

The original press release is available in Japanese.(1open new window)(2open new window)(3open new window)
December 20, 2024 Administrative monetary penalty against an individual (non-insider/retail investor) for committing insider trading regarding stocks of Alphax Food System Co., LTD, by using information received from an officer of the entity
<Summary>
On December 19, 2024, the FSA issued an order to impose an administrative monetary penalty against an individual (non-insider/retail investor) for committing insider trading regarding stocks of Alphax Food System Co., LTD, in violation of the "Financial Instruments and Exchange Act," by using information received from an officer of the entity.

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

Others

December 27, 2024 Warning against fraudulent investment solicitation related to CBDCs (Central Bank Digital Currencies) 
<Summary>
The FSA issued a warning against fraudulent investment solicitation related to CBDCs (Central Bank Digital Currencies), in response to a recent increase in reports from financial services users who have gotten into trouble upon receiving fraudulent investment solicitation related to CBDCs. 
While the FSA stresses that a Japanese yen-CBDC does NOT exist (as its technical viability is still in the stage of research and consideration), the FSA alerts the public to make prudent judgment with such investment solicitations involving CBDCs and refrain from making any transactions or contracts when they find anything suspicious.
The FSA also 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.open new window
December 27, 2024 Publication of the third FY 2024 edition of the reference casebook of good practices on the disclosure of narrative information, mainly in regard to perspectives and initiatives for corporate sustainability
<Summary>
The FSA has been publishing a series of reference casebooks of good practices on the disclosure of narrative information to encourage corporate initiatives to accumulate and instill good practices toward the enhancement of disclosure of narrative information. 
The FSA has newly published the third FY 2024 edition of the reference casebook of good practices on the disclosure of narrative information, a compilation of good practices in the disclosure of corporate sustainability*-related concepts and initiatives disclosed in annual reports, including "Human Capital and Diversity" and "Human Rights."

The third FY 2024 edition of the reference casebook has been compiled by the "Study Group for Collecting Good Practices on Corporate Disclosure of Narrative Information Based on the Principles Regarding the Disclosure of Narrative Information,"** and it shares the latest collection of favorable practices on the disclosure of narrative information mainly in terms of corporate sustainability. (Updates to the casebook are made as deemed necessary).
 

*Corporate disclosure of sustainability information is a key corporate disclosure element that has been gaining focus and interest in society lately. Relevant initiatives to enhance corporate disclosure of sustainability information are encouraged through amendments to the Corporate Governance Code and other measures.

**The Study Group is to bring investors, analysts, experts, and representatives from listed companies together to update the reference casebook.


The original press release is available in Japanese.open new window
December 26, 2024 Completion of support for the fifth project of "Frontrunner Support-Hub on Enterprise System"
<Summary>
The FSA has announced the completion of support for the fifth project of "Frontrunner Support-Hub* on Enterprise System" established in March 2020, thereby publishing the overall summary report of the fourth project including underlying key issues related to IT governance and risk management in monitoring, which have been clarified through the provision of support from the Support-Hub.
The Support-Hub has provided support for financial institutions' innovative approaches/initiatives for enterprise systems, particularly in system monitoring of IT governance and IT-related risk management, in addition to functions such as legal interpretation (regulatory applicability).
 

* The Support-Hub has been upgraded with enhanced functions to "Frontrunner Support Desk on Financial Institution's Computer Systems"open new window (provisional English title) since November 2021.


The original press release is available in Japanese.open new window
December 26, 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
December 24, 2024 Cabinet decision on the "Order Partially Amending the Order for Enforcement of the Small and Medium-Sized Enterprise Cooperatives Act and the Order for Enforcement of the Act on the Organization of Small and Medium-sized Enterprise Association"
<Summary>
The FSA announced that the Cabinet decided on the "Order Partially Amending the Order for Enforcement of the Small and Medium-Sized Enterprise Cooperatives Act and the Order for Enforcement of the Act on the Organization of Small and Medium-sized Enterprise Association" (hereinafter referred to as "the Order") on December 24, 2024.
The Order sets forth that the affairs under the authorities of the Prime Minister and the competent Ministers pertaining to business cooperatives shall be delegated to prefectural governors.
The Order was enforced on December 28, 2024.

The original press release is available in Japanese.open new window
December 24, 2024 Warning against a cyber-attack by TraderTraitor, a North Korea-backed cyber-attack group, and a reiteration of a request to cryptoasset exchange service providers to take appropriate response to outflow risks of cryptoassets, etc.
<Summary>
In response to an unauthorized outflow of cryptographic assets from DMMBitcoin Inc. in May 2024, which was identified as a cyber-attack by TraderTraitor, a North Korea-backed cyber-attack group, the FSA, alongside the NPA (National Police Agency) and the NISC (National center of Incident readiness and Strategy for Cybersecurity), jointly issued a warning to organizations and business operators that can be targeted by such an attack to take appropriate security measures, by referring to examples of the hacker's tactics and mitigation measures thereto.
In this regard, the FSA reiterated a request* to Japan Virtual and Crypto assets Exchange Association to ensure that cryptoasset exchange service providers conduct self-inspection on their response to the outflow risks of cryptoassets.

* Prior request was made in September 2024, in response to the incident of an outflow of cryptoassets that occurred in May 2024.


Provisional Translation of PDFAlert: Cyberattack by North Korean Cyber Actors, TraderTraitor (Added on February 5, 2025)

The original press release is available in Japanese.(1open new window)(2open new window)
December 24, 2024 Results of the Cybersecurity Self-Assessment for Financial Institutions (FY2023)
December 23, 2024 Updated web portal site for information on human resource intermediation by regional financial institutions to encourage the matching of human resources for regional businesses' corporate management
<Summary>
The FSA has been developing a human resources database called REVICareeropen new window (available only in Japanese) at REVIC (Regional Economy Vitalization Corporation of Japan)open new window, aimed at creating a new inflow of human resources (professionals) from major cities to regional areas. Through REVICareer, the FSA has been enhancing the human resource intermediary functions of regional financial institutions and promoting the matching of human resources (professionals with expertise) in major corporations to play an active role at small and medium-sized enterprises (SMEs) in regional areas. 
As of December 23, 2024, the FSA shared the PDFupdatesopen new window on its web portal site for information on human resource intermediation by regional financial institutions to encourage the matching of human resources for regional businesses' corporate managementopen new window, which announced that the FSA and METI (Ministry of Economy, Trade and Industry) will jointly collaborate to further enhance the matching of management personnel from major corporations to small and medium-sized enterprises (SMEs).

The original press release is available in Japanese.open new window
December 20, 2024 Publication of "Statistics of NISA Accounts" as of September 30, 2024
<Summary>
The FSA has published "Statistics of NISA (Nippon Individual Savings Account) Accounts." As of September 30, 2024, there were approximately 25.1 million NISA accounts* in total, and approximately 49.0 trillion yen (approximately 312.8 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
December 20, 2024 Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector 
<Summary>
The FSA has published the main issues raised by the FSA at opinion exchange meetings* held in November 2024 with relevant associations in the financial sector. (Available only in Japanese).

Common topics across the groups were:

- the deliverables of the third meeting of the "Study Group on Deposit-taking Institutions' Response to Post-Quantum Cryptography" (provisional English title)

- the deliverables of the G20 Finance Ministers and Central Bank Governors Meeting as of October 2024


Notable issues discussed by most but not all of the groups were:

- financial measures to deal with disasters caused by the heavy rain from November 8, 2024, that financial institutions were requested by the FSA to take, and

- the second meeting of the Networking Group on NISA Promotion (provisional English title)

 

* To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes the main issues raised by the FSA at opinion exchange meetings with the relevant associations** in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis.
 

** In November 2024, opinion exchange meetings were held respectively with the following nine groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; The National Association of Shinkin Banks; Shinkumi Banks Association of Japan; the Life Insurance Association of Japan; the Japan Securities Dealers Association (JSDA); labor banks sector; Japan Virtual and Crypto assets Exchange Association; and funds transfer service providers.


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

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