Financial Services AgencyFSA Weekly Review No.624

February 20, 2025

What’s New on the FSA Website

Week of February 7, 2025 - February 13, 2025

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

Press Conferences

February 10, 2025 Press Conference by the Minister of State for Financial Services (January 28, 2025) 
February 10, 2025 Press Conference by the Minister of State for Financial Services (January 24, 2025)

Public Comments

February 10, 2025 Publication of the finalized amendments to a regulatory notice designating certain rules based on Article 2(1) and (2) of the "Cabinet Office Order on the Regulation of Over-the-Counter Derivatives Transactions" after public consultation
<Summary>
The FSA finalized the amendments to a regulatory notice designating certain rules based on Article 2(1) and (2) of the "Cabinet Office Order on the Regulation of Over-the-Counter (OTC) Derivatives Transactions" in connection with the future cessation of Euroyen TIBOR (Tokyo Internet Offered Rate) after public consultation.
The finalized amendments mainly develop provisions relating to transactions subject to the centralization of clearing for OTC derivatives transactions, etc. conducted by financial instruments firms, etc.
The finalized amendments took effect on February 10, 2025.

The original press release is available in Japanese.open new window
February 7, 2025 Publication of the finalized Cabinet Office Orders after public consultation, in response to the enactment (in FY 2023) of the "Act Partially Amending the Act on Book-Entry Transfer of Corporate Bonds and Shares," etc. to respond to changes in the environment involving advances in information technology after public consultation
<Summary>
The FSA published the finalized Cabinet Office Orders after public consultation, in response to the enactment (as of November 20, 2023) of the "Act Partially Amending the Act on Book-Entry Transfer of Corporate Bonds and Shares" to respond to changes in the environment involving advances in information technology (Act No. 80 of 2023).
The finalized Cabinet Office Orders develop provisions of the applicable Ministerial Orders in terms of digitization of trial procedures under the "Certified Public Accountants Act." 
The finalized Cabinet Office Orders will be enforced on April 1, 2025.

The original press release is available in Japanese.open new window
February 7, 2025 Publication of the finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others after public consultation
<Summary>
The FSA has published the finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others after public consultation.
The finalized Cabinet Orders and Cabinet Office Orders, etc. provided consequential amendments to their provisions in response to the enforcement of the "Act Partially Amending the Financial Instruments and Exchange Act, and Other Acts," which was enacted on November 20, 2023.
In particular, the consequential amendments mainly pertain to the following：

1. the development of rules on provision of information to customers prior to a conclusion of a contract, etc.:

- to set forth the method of providing information prior to the conclusion of a contract, etc.

- to set forth exemptions from the obligation to provide explanations for customers in light of their attributes, and

- to clarify the initial date for colling-off in accordance with the method of information provision, etc.

2. the development of provisions on electronic provision of prospectuses, and

3. the development of provisions on digitalization of trial procedures for administrative monetary penalty payment orders.


The finalized Cabinet Orders and Cabinet Office Orders, etc. will either be enforced or take effect on April 1, 2025.

The original press release is available in Japanese.open new window
February 7, 2025 Publication of the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" for public consultation
<Summary>
The FSA proposed the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures, etc. under the Financial Instruments and Exchange Act" alongside the draft "Cabinet Order to Amend the Cabinet Order on Travel Expenses and Allowances Payable to Witnesses and Expert Witnesses in Trial Procedures of the Certified Public Accountants Act" (hereinafter referred to as the "proposal") for public consultation.

In response to the enforcement of the "Act Partially Amending the Act on Travel Expenses of National Public Employees, etc.," the proposal is intended to develop necessary provisions for travel expenses and allowances* for witnesses and expert witnesses in trial procedures, etc. under the "Financial Instruments and Exchange Act" and the "Certified Public Accountants Act," thereby providing amendments to the applicable and relevant Cabinet Orders to increase the maximum daily allowance for witnesses and expert witnesses in light of recent changes in economic conditions. The proposal is also intended to newly establish relevant and applicable Cabinet Office Orders pertaining to the details of travel expenses and allowances. 

Public comments will be accepted until 5:00 p.m. [JST], March 9, 2025.
 

* The proposal is intended to increase the maximum daily allowance to be paid to a witness in a trial procedure pertaining to an administrative monetary penalty payment order from the current 8,200 yen to 8,450 yen and to an expert witness from the current 7,800 yen to 8,050 yen.


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

Press Releases

Councils

February 12, 2025 Joint session of the 54th general meeting of Financial System Council and the 42nd meeting of Sectional Committee on Financial System
February 12, 2025 Publication of the agenda and handouts of the 67th Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group
<Summary>
The FSA published the agenda and handouts of the 67th Meeting of the Financial Service ADR (Alternative Dispute Resolution) Liaison Group, which was held on February 12, 2025. 
In the 67th meeting, the FSA presented the implementation status of the service operations rendered by each of the designated alternative dispute resolution (ADR) organizations in the first half of FY 2024.

The original press release is available in Japanese.open new window
February 10, 2025 Publication of the agenda and handouts of the first meeting of the "Expert Study Group on Assurance of Sustainability-related Financial Information" of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Expert Study Group on Assurance of Sustainability-related Financial Information" of the Financial System Council, which was held on February 12, 2025. 
In the first meeting, the secretariat (i.e. the FSA) gave a briefing on the desirable rules required for sustainability-related financial information assurance service providers, and the JICPA (Japanese Institute of Certified Public Accountants) and the JAB (Japan Accreditation Board) gave a briefing on voluntary-guarantee services, followed by a discussion among the Expert Study Group members.

The original press release is available in Japanese.open new window
February 7, 2025 Released the meeting materials of “The First Working Group on Improving Internal Audits of Financial Institutions"

Banks

February 12, 2024 Request for financial measures to deal with disasters caused by a road collapse accident due to a damaged basin sewer pipe (the Kanto Local Finance Bureau)
<Summary>
The Kanto Local Finance Bureau alongside the Financial System and Bank Examination Department of the Bank of Japan issued a statement titled "Financial Measures to Deal with Disasters Caused by a Road Collapse Accident Due to a Damaged Basin Sewer Pipe" [provisional English title] to the relevant financial institutions.
The said statementopen new window (available only in Japanese) requests financial institutions in Saitama prefecture* to appropriately deal with victims of the disaster considering their circumstances, with due consideration for the safety of their service users and employees, such as by making the repayment of deposits flexible. 
 

* Matters related to financial measures in Saitama prefecture fall within the purview of the Kanto Local Finance Bureau. 
Disaster-affected areas in the said 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
February 7&10, 2025 Request for financial measures to deal with disasters caused by the heavy snow from February 4, 2025 (the Kanto Local Finance Bureau and the Tohoku Local Finance Bureau)
<Summary>
The following Local Finance Bureaus alongside the competent Branches of the Bank of Japan issued statements titled "Financial Measures to Deal with Disasters Caused by the Heavy Snow from February 4, 2025" to the relevant financial institutions:

- The Kanto Local Finance Bureau alongside Niigata Branch of the Bank of Japan (Statement issued as of February 7, 2025open new window), and

- The Tohoku Local Finance Bureau alongside the Fukushima Branch of the Bank of Japan (Statement issued as of February 10, 2025open new window)


The said statements (available only in Japanese) request financial institutions in Niigata and Fukushima prefectures* 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 Niigata prefecture fall within the purview of the Kanto Local Finance Bureau, whereas those in Fukushima prefecture fall within the purview of the Tohoku Local Finance Bureau. 
Disaster-affected areas in the said prefectures are currently subject to the "Disaster Relief Act." If more areas in the prefectures become subject to the said Act, financial institutions in the prefectures will be requested to take measures in the same manner as above accordingly.


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

Securities

February 13, 2025 Administrative action against Kabushiki Kaisha WCP, a notifier of specially permitted business for qualified institutional investors (SPBQII)
<Summary>
The Kanto Local Finance Bureau took administrative action against Kabushiki Kaisha WCP,* a notifier of specially permitted business for qualified institutional investors (SPBQII) [hereinafter referred to as the "notifier"], based on the results of onsite inspection conducted by the said Bureau, where the notifier was found to be in violation of the "Financial Instruments and Exchange Act" (FIEA), such as where the notifier did not faithfully conduct its investment management business, by engaging in transactions between its fund and its directors without obtaining consent from its investors. 
The FSA ordered the suspension of the notifier's business in terms of sales and solicitation of private placement of funds from February 13, 2025, to March 12, 2025, and the improvement of its business operations, pursuant to the FIEA.

The business improvement order includes the following:

(1) to fully explain to all investors who have acquired fund interests in all funds involved in the notifier's specially permitted business for qualified institutional investors in regard to the facts and reasons for the administrative action taken by the Bureau against the said notifier, and to take appropriate responses

(2) to analyze the cause of the act in violation of the FIEA, and to formulate and implement measures to prevent recurrence, thereby establishing a regulatory compliance structure and an appropriate business operational structure

(3) to clarify where the responsibility for the act in violation of the FIEA lies, and

(4) to report in writing by March 12, 2025, on the status of actions and implementation of (1) through (3) above, and thereafter report in writing from time to time until all of such measures are completed.

 

* As this entity has no English corporate name, the Romanized version of the Japanese corporate name is stated here. Kabushiki Kaisha (Kabushiki Gaisha) stated in the corporate name means "stock company" in Japanese.


The original press release is available in Japanese.open new window
February 7, 2025 Administrative action against Serenity Capital Management LLC
<Summary>
The Kanto Local Finance Bureau took an administrative action against Serenity Capital Management LLC, a high-speed trader, regarding which the Kanto Local Finance Bureau cannot ascertain the location of its office, ordering the revocation of the entity’s registration pursuant to the "Financial Instruments and Exchange Act."
(Details of the administrative action are available [only in Japanese] on the website of the Kanto Local Finance Bureauopen new window).

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

Others

February 13, 2025 Financial and economic educational event co-hosted by the FSA and the Tokyo Metropolitan Government, titled "Let's Learn with Your Children! What is Money?" (provisional English title) [original Japanese title: "Oyako de Manabo! Okane-tte Naani?"] during "Global Money Week 2025"
<Summary>
On March 22, 2025, the FSA and Tokyo Metropolitan Government will co-host an event titled "Let's Learn with Your Children! What is Money?" (provisional English title) [original Japanese title: "Oyako de Manabo! Okane-tte Naani?"], mainly aimed at elementary school students and their parents. The event will feature financial and economic educational content that may serve as reference for people of all ages, as well as booths for individual consultations on life planning, investment, and other topics. 
This initiative is part of "Global Money Week (GMW) 2025"open new window, which is an international awareness-raising initiative to promote financial education and financial inclusion for children and youth. In Japan, GMW 2025 will be held from March 1 to 31, 2025.

The original press release is available in Japanese.open new window
February 13, 2025 Publication of "Statistics of NISA Accounts" as of December 31, 2024 (preliminary figures)
<Summary>
The FSA has published "Statistics of NISA (Nippon Individual Savings Account) Accounts" (preliminary figures). As of December 31, 2024, there were approximately 25.6 million NISA accounts* in total, and approximately 52.7 trillion yen (approximately 345.8 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
February 7, 2025 Call for participation in the consultation meeting for an annual update of EDINET Taxonomy
<Summary>
The FSA announced the call for participation in the consultation meeting for an annual update of EDINET Taxonomy to be held on March 7, 2025.

The original press release is available in Japanese.open new window
February 7, 2025 We have updated the “Cold Calling” list (as of December 31, 2024)

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