Financial Services AgencyFSA Weekly Review No.621

January 30, 2025

What’s New on the FSA Website

Week of January 17, 2025 - January 23, 2025

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

Public Comments

January 20, 2025 Publication of the draft amendments to the "regulatory notice pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy" for public consultation
<Summary>
The FSA proposed the draft amendments to the "regulatory notice pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy" (hereinafter referred to as the "proposal") for public consultation.
The proposal is intended to provide necessary amendments to the applicable regulatory notice, in order to update the level of shocks in interest rates used for measuring interest rate risk based on an international agreement PDF"Recalibration of shocks in the interest rate risk in the banking book standard (IRRBB)"open new window published by the Basel Committee on Banking Supervision (BCBS) in July 2024, and to partly adjust the market risk assessment methodology.
Public comments will be accepted until February 18, 2025.

The original press release is available in Japanese.open new window
January 20, 2025 Publication of the draft "Issues and Practices for Dialogue on Validation of Effectiveness of AML/CFT (Anti-money Laundering and Combating the Financing of Terrorism) Frameworks" for public consultation
<Summary>
The FSA proposed the draft "Issues and Practices for Dialogue on Validation of Effectiveness of AML/CFT (Anti-money Laundering and Combating the Financing of Terrorism) Frameworks" (hereinafter referred to as the "proposal") for public consultation.
The proposal is intended to set out the concept of "validation of effectiveness" required to be implemented based on the "Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)" as well as the way to proceed with dialogue with the authorities. 
Public comments will be accepted by 5:00 p.m. (JST), February 20, 2025.

The original press release is available in Japanese.open new window
January 17, 2025 Publication of draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others for public consultation
<Summary>
The FSA has published the draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others (hereinafter collectively referred to as the "proposal") for public consultation.

In response to the "Act Partially Amending the Financial Instruments and Exchange Act and the Act on Investment Trusts and Investment Corporations," which was enacted on May 15, 2024, the proposal is mainly intended to develop the provisions of the applicable Cabinet Orders and Cabinet Office Orders, etc.
In particular, the proposal is intended to develop the provisions pertaining to:
- Investment management business-related services entrusted to contractors
- Investment management business, and
- Specially permitted intermediary services regarding unlisted securities

Public comments will be accepted until 5:00 p.m. [JST], February 16, 2025.
The original press release is available in Japanese.open new window
January 17, 2025 Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Money Lenders" and others for public consultation
<Summary>
The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Money Lenders" and others (hereinafter collectively referred to as the "proposal") for public consultation.
The proposal is mainly intended to clarify responses to be taken by the competent authorities for entities who are operating money lending business without proper registration, and to provide necessary amendments to the said Guidelines.
Public comments will be accepted until 5:00 p.m. (JST), February 18, 2025.

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

Press Releases

Policies

January 17, 2025 Publication of an ex-ante valuation report based on regulatory impact analysis (RIA) in regard to the easing of capital and net asset requirements for investment management businesses that do not accept deposits of money, etc. from customers 
<Summary>
The FSA published an PDFex-ante evaluation reportopen new window based on regulatory impact analysis (RIA)* in regard to the easing** of capital and net asset requirements for investment management businesses that do not accept deposits of money, etc. from customers, pertaining to the draft "Cabinet Order on the Development of the Relevant and Applicable Cabinet Orders Associated with the Enforcement of the Act Partially Amending the Financial Instruments and Exchange Act and the Act on Investment Trusts and Investment Corporations." 
 

* RIA is a methodology aimed at improving the objectivity and transparency of regulations by objectively analyzing the impact of the introduction or revision of regulations in respect of the expected implementation costs and effects, etc., and by disclosing the results. 

** The FSA mainly intends to develop provisions of the relevant and applicable Cabinet Orders, such as lowering the capital and net asset requirements from 50 million yen to 10 million yen for investment management businesses that do not accept deposits of money, etc. from customers.


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

International 

January 17, 2025 A speech on “Remarks on green transition” at the Eurofi Financial Forum 2024

Publication

January 21, 2025 Publication of "FSA Analytical Notes (2025.1) vol.2” in Japanese: I. Analysis of Borrower Classifications, and II. Attributes of Housing Loans."
January 17, 2025 PDFFSA publishes English translation of monthly magazine, Access FSA No.254
January 17, 2025 PDFFSA publishes English translation of monthly magazine, Access FSA No.253

Councils

January 22, 2025 Publication of the "Report of the Working Group on Payment Services System, etc." under the Financial System Council
<Summary>
The FSA published the PDF"Report he 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 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
January 17, 2025 Publication of the agenda and handouts of the 151st meeting of the Council on Automobile Liability Insurance
<Summary>
The FSA published the agenda and handouts of the 151st meeting of the Council on Automobile Liability Insurance, which was held on January 17, 2025.
In the 151st meeting, the council members discussed and approved a proposal to update the mutual aid rules associated with the introduction of cashless payment for the collection of mutual liability insurance premiums.

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

Others

January 23, 2025 "Japan Fintech Week 2025” official website has been updated.open new window
January 22, 2025 Stewardship Code : 333 institutional investors have signed up to the Principles for Responsible Institutional Investors as of December 31, 2024
January 22, 2025 Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’(January 20)
January 17, 2025 Administrative action against Aska & Co.
<Summary>
The FSA took an administrative action against Aska & Co., pursuant to the "Certified Public Accountants Act" (Act No.103 of 1948), ordering the firm to suspend its services in terms of the conclusion of new contracts for six months (from January 20 to July 19, 2025) and to improve its operational management structure. This administrative action is based on a recommendation from the Certified Public Accountants and Auditing Oversight Board as a result of their on-site monitoring.

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

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