Financial Services AgencyFSA Weekly Review No.626

March 6, 2025

What’s New on the FSA Website

Week of February 21, 2025 - February 27, 2025

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

Public Comments

February 27, 2025 Publication of the draft "regulatory notice designating certain rules of certified associations for payment service providers pursuant to the provision of Article 32, paragraph (7) of the Cabinet Office Order on Electronic Payment Instruments Service Providers" and the draft "regulatory notice designating certain rules pursuant to the provision of Article 39, paragraph (1) of the Cabinet Office Order on Electronic Payment Instruments Service Providers" for public consultation
<Summary>
The FSA proposed the draft "regulatory notice designating certain rules of certified associations for payment service providers pursuant to the provision of Article 32, paragraph (7) of the Cabinet Office Order on Electronic Payment Instruments Service Providers" (A) and the draft "regulatory notice designating certain rules pursuant to the provision of Article 39, paragraph (1) of the Cabinet Office Order on Electronic Payment Instruments Service Providers" (B) for public consultation.

The draft regulatory notices (A) and (B) are intended to respectively designate the following rules:
 

(A) Pursuant to Article 32, paragraph (7) of the "Cabinet Office Order on Electronic Payment Instruments Service Providers" (Cabinet Office Order No.48 of 2023), in regard to electronic payment instruments margin transactions, the substitute price for the whole or part of the security deposit required to be deposited by electronic payment instruments service providers shall be the price set forth in the rules of certified associations for payment service providers designated by the FSA.
 

(B) Pursuant to Article 39, paragraph (1) of the "Cabinet Office Order on Electronic Payment Instruments Service Providers" (Cabinet Office Order No. 48 of 2023), electronic payment instruments service providers are required to have their status of segregation of users' assets audited by a certified public accountant or an audit corporation at least once a year in accordance with the rules designated by the FSA.


Public comments will be accepted until 5:00 p.m. (JST), March 18, 2025.

The original press release is available in Japanese.open new window
February 26, 2025 Publication of the finalized amendments to the FSA's regulatory notices concerning the "designated IFRSs" after public consultation
<Summary>
The FSA proposed the finalized amendments to the regulatory notices concerning the "designated International Financial Reporting Standards (IFRSs)" stipulated in the "Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements" after public consultation.
The finalized amendments mainly reflect the financial standards that were amended* by the International Accounting Standards Board (IASB) in the "designated IFRSs."
 

*The repeal of IAS 1 Presentation of Financial Statements and the amendments to the following IASs (International Accounting Standards) and IFRSs are reflected in the designated IFRSs:
 

- IAS 7 Statement of Cash Flows
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IFRS 1 First-time Adoption of International Financial Reporting　Standards
- IFRS 7 Financial Instruments: Disclosures
- IFRS 9 Financial Instruments, and
- IFRS 10 Consolidated Financial Statements

The finalized amendments took effect on February 26, 2025.

The original press release is available in Japanese.open new window
February 26, 2025 Publication of the draft amendments to the "Guidelines for Administrative Processes" regarding cryptoasset exchange service providers for public consultation
<Summary>
The FSA proposed the draft amendments to the "Guidelines for Administrative Processes" regarding cryptoasset exchange service providers [hereinafter referred to as the "proposal"] for public consultation. 
The proposal is mainly intended to provide necessary amendments to the said Guidelines regarding the sale of cryptoassets by cryptoasset exchange service providers to investors who have certain knowledge of and experience with cryptoasset transactions.
Public comments will be accepted until 5:00 p.m. [JST], March 27, 2025.

The original press release is available in Japanese.open new window
February 21, 2025 Publication of the finalized "Cabinet Order to Amend the Order for Enforcement of the Financial Instruments and Exchange Act" and others after public consultation
<Summary>
The FSA published the finalized "Cabinet Order to Amend the Order for Enforcement of the Financial Instruments and Exchange Act" and others after public consultation. 
The finalized Cabinet Order has developed the relevant and applicable Cabinet Orders, etc. in order to encourage financing for startups, etc. and the provision of various investment products according to the risk-bearing capacity of investors, in order to:

1. review disclosure regulations in terms of:

(1) revising disclosure regulations pertaining to stock-based compensation

(2) enhancing the scope of information to be provided in private placements to professional investors via the Internet, and

(3) simplifying the content of disclosure in securities registration statements for small-amount offerings.

2. review the business scope of type-I small amount electronic public offering service, etc., and

3. ease the prohibition on acquisition of own investment equity by investment corporations, etc.

The finalized Cabinet Order was enforced on February 25, 2025.

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

Press Releases

Councils

February 21, 2025 Publication of the agenda and handouts of the fifth meeting of the "Working Group on Financial Infrastructure for Carbon Credit Transactions" (provisional English title)
<Summary>
The FSA published the agenda and handouts of the fifth meeting of the "Working Group on Financial Infrastructure for Carbon Credit Transactions" (provisional English title), which was held on February 25, 2025.
From the perspective of enhancing the transparency and soundness of carbon credit transactions and promoting investor protection, the Working Group intends to work on the optimal trading infrastructure and market practices regarding carbon credits from a practical and professional perspective, thereby discussing initial issues.

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

Banks

February 27, 2025 Request for financial measures to deal with disasters caused by a large-scale fire outbreak in Ofunato City, Iwate Prefecture, 2025 (the Tohoku Local Finance Bureau)
<Summary>
The Tohoku Local Finance Bureau and the Sendai Branch of the Bank of Japan issued a statementopen new window (available only in Japanese) titled "Financial Measures to Deal with Disasters Caused by a Large-Scale Fire Outbreak in Ofunato City, Iwate Prefecture, 2025" to the relevant financial institutions. The statement requests financial institutions in Iwate Prefecture 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 Iwate prefecture fall within the purview of the Tohoku 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 26, 2025
February 21, 2025		 Request for financial measures to deal with disasters caused by the heavy snow from February 17, 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 on the Sea of Japan side from February 17, 2025" to the relevant financial institutions:

- The Kanto Local Finance Bureau alongside Niigata Branch of the Bank of Japan (Statement issued as of February 21, 2025open new window), and

- The Tohoku Local Finance Bureau alongside the Aomori Branch of the Bank of Japan (Statement issued as of February 25, 2025open new window)


The said statements (available only in Japanese) request financial institutions in Niigata and Aomori 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 Aomori 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
February 21, 2025 Approval of "Special Business Strengthening Plan" and etc. filed by financial institutions
<Summary>
Upon receipt of the "Special Business Strengthening Plan," the "Special Business Management Enhancement Guidance Plan," and other relevant plans newly filed by SosoGojou Shinkumi Bank alongside the Shinkumi Federation Bank (central body for Japan credit cooperatives), in regard to the application for the special provisions concerning the Great East Japan Earthquake pursuant to the "Act on Special Measures for Strengthening Financial Functions," the FSA approved the plans after conducting a review and assessment.

The original press release is available in Japanese.open new window
February 21, 2025 Decision on subscription for preferred equity investments in the Shinkumi Federation Bank (central body for Japan credit cooperatives) pursuant to the “Act on Special Measures for Strengthening Financial Functions”
<Summary>
The FSA decided to subscribe for preferred equity investments in the Shinkumi Federation Bank (central body for Japan credit cooperatives) based on the capital injection scheme pursuant to the “Act on Special Measures for Strengthening Financial Functions,” and published the "Policy for Strengthening Financial Functions of Cooperative Financial institutions" (provisional English title) and others. 
The fund that is going to be invested in the Shinkumi Federation Bank will be put into member shinkumi banks for the purpose of enhancing their capital adequacy in response to their financial support requests to fully ensure smooth and stable financing for business enterprises in local regions.

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

Securities

February 26, 2025 Administrative monetary penalty against an individual (non-insider/retail investor) who committed insider trading regarding stocks of Stream Media Corporation by using information received from an employee of a contract negotiator with Stream Media Corporation
<Summary>
On February 26, 2025, the FSA issued an order to impose an administrative monetary penalty against an individual (non-insider/retail investor) who committed insider trading regarding stocks of Stream Media Corporation by using information received from an employee of a contract negotiator with Stream Media Corporation, in violation of the "Financial Instruments and Exchange Act."

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

Others

February 25, 2025 Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’（February 21）

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