Overview of the institutional, regulatory, and supervisory Framework:
-Towards further improvement in the transparency of regulatory actions-

The Financial Services Agency recognizes the importance of "Better Regulation," improving the quality of financial regulation, as a major issue for creating a better regulatory environment in the future. In realizing this objective, "improving the transparency and predictability of regulatory actions" has been placed as one of the four pillars of “Better Regulation”.

From this standpoint, in order to facilitate understanding of the FSA's programs and activities, links to documents and materials developed by respective divisions in charge of planning, inspection and supervision have been collated and made available below for your reference.

I. General

• The Principles in the Financial Services Industry

II. Regulatory System

Laws and Regulations

• Names of Laws and Regulations, FSA Japan
• Schedule for Reviews of the Existing Acts related to Financial Services (Available in Japanese)
• Notifications and Guidelines in Financial Regulation (Available in Japanese)
• Information regarding Corporate Financial Disclosure (Available in Japanese)

Q&As

• Collection of Reference Cases on the Interpretation of Insurance Laws and Regulations related to Over-the-Counter Sales at Banks (Available in Japanese)
• Customer Identity Verfication at Financial Institutions (Available in Japanese)
• The Electronic Share Certificate System (Available in Japanese)
• Q&As on Registration of Certified Public Accountants (Available in Japanese)
• Our Answers to Your Questions on the Financial Instruments and Exchange Act (Q&A Collection)
• Q&As on the Internal Control Report System (Available in Japanese)
• Eleven Misunderstandings about the Internal Control Report System, etc.
• Collection of Reference Cases and Q&As on Permanent Establishment (PE) (regarding taxation on foreign fund managers)
• Q&As on Insider Trading Regulation (Available in Japanese)

III. Inspections

Financial Inspection Manuals

• Inspection Manual for Deposit-Taking Institutions (Available in Japanese) For each item
• Supplement to the Financial Inspection Manual: Treatment of Classifications Regarding Credit to Small- and Medium-Sized Enterprises (Available in Japanese) For each item
• Inspection Manual for Trust and Banking Companies (Supplement to the Financial Inspection Manual for Trust Business) (Available in Japanese) For each item
• Checklist for Inspection on Management of System Integration Risk (Available in Japanese)
• Financial Inspection Rating System for Deposit-Taking Institutions
• Inspection Manual for Insurance Companies (Available in Japanese) For each item
• Inspection Rating System for Insurance Companies
• Inspection Manual for Financial Holding Companies (Available in Japanese) For each item
• Inspection Manual for Financial Instruments Business Operators, etc. (Securities and Exchange Surveillance Commission website) (Available in Japanese)

Basic Guidelines and Policies for Financial Inspections

• Basic Policy for Financial Inspection (Available in Japanese)
• Financial Monitoring Policy in the Program Year 2013 Highlights Summary
• Basic Inspection Guidelines (Securities and Exchange Surveillance Commission website) (Available in Japanese)
• Basic Inspection Policy and Inspection Program for Business Year 2009 (Securities and Exchange Surveillance Commission website)
• Basic Guidelines on Inspections by Certified Public Accountants and Auditing Oversight Board (Certified Public Accountants and Auditing Oversight Board website) (Available in Japanese)
• Oversight Policy and Plan: To Further Ensure the Quality of Audits (Certified Public Accountants and Auditing Oversight Board website) (Available in Japanese)
• Basic Audit Plan and Inspection Plan for Administrative Year 2008 (Certified Public Accountants and Auditing Oversight Board website) (Available in Japanese)

Collection of Reference Cases

• Collection of Reference Cases related to Quality Management in Audit Identified in Inspections and Collection of Reference Cases Inviting Comments (Available in Japanese)
• Principal Items Identified in the Inspection of Financial Instruments Firms, etc. (Securities and Exchange Surveillance Commission website) (Available in Japanese)
• Collection of Reference Cases related to Quality Management in Audit Identified in Inspections (Certified Public Accountants and Auditing Oversight Board website) (Available in Japanese)

Q&As

• Frequently Asked Questions (FAQs) on the Revised Inspection Manuals (Available in Japanese)
• Q&As on the Financial Inspection Rating System (Available in Japanese)

IV. Supervision

(1) Supervisory Guidelines and Policies

Supervisory Guidelines, etc.

• Supervisory Guidelines
  • Comprehensive Guidelines for Supervision of Major Banks, etc.
    • Main document (HTML format • PDF format (PDF:910KB)) Reference Materials and Forms (Available in Japanese)
  • Comprehensive Guidelines for Supervision of Small- and Medium-Sized Enterprises and Regional Financial Institutions
    • Main document (HTML format • PDF format (PDF:1,590KB)) Reference Materials and Forms (Available in Japanese)
  • Comprehensive Guidelines for Supervision of Insurance Companies
    • Main document (HTML format • PDF format (PDF:746KB)) Appendix: Forms (PDF:5,174KB) (Available in Japanese)
  • Supervisory Guidelines for Small-Claims and Short-Term Insurance Businesses Operators
    • Main document (HTML format • PDF format (PDF:226KB)) Appendix: Forms (PDF:1,572KB) (Available in Japanese)
  • Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.
    • Japanese (HTML • PDF (PDF:861KB)) PDF format (PDF:345KB)
    • English (PDF(PDF:1,595KB)) PDF Format(PDF:228K)
  • Guidelines for Supervision of Credit Rating Agencies
    • Japanese (HTML • PDF (PDF:254K)) PDF format (PDF:96K)
    • English (PDF (PDF:133K) • PDF format(PDF:67K))
  • Comprehensive Guidelines for Supervision of Trust Companies, etc.
    • Main document (HTML format • PDF format (PDF:554KB)) Appendix: Forms (PDF:1,352KB) (Available in Japanese)
  • Guidelines for Supervision of Financial Conglomerates
    • Japanese (HTML format • PDF format (PDF:297K))
    • English (HTML format • PDF format)
  • Comprehensive Guidelines for Supervision of Money Lenders
    • Main document (HTML format • PDF format (PDF:581KB)) Appendix: Forms (PDF:360KB) (Available in Japanese)
  • Comprehensive Guidelines for Supervision of Credit Guarantee Associations
    • Main document(HTML format • PDF format (PDF:327KB)) (Available in Japanese)
• Guidelines for Administrative Processes
  • Financial Companies (Available in Japanese)

Public Comments and the FSA's views on Partial Revision of Guidelines for Supervision (Available in Japanese)

Supervisory Policies

• Annual Supervisory Policies for Major Banks for Program Year 2008
• Annual Supervisory Policies for Regional Financial Institutions for Program Year 2008
• Annual Supervisory Policies for Insurance Companies, etc. for Program Year 2008
• Annual Supervisory Policies for Financial Instruments Business Operators, etc. for Program Year 2008

(2) Administrative Action, etc

• Administrative Action in the Financial Sector
• Collection of cases in which administrative action has been taken (Available in Japanese)

(3) Inquires Procedures regarding Construction of Laws and Regulations

No-Action Letter system

• Introduction of the Prior Confirmation Procedures on the Application of Laws and Regulations by the Financial Services Agency (Available in Japanese)
• Details of the Prior Confirmation Procedures on the Application of Laws and Regulations by the Financial Services Agency (Available in Japanese)
• Response to the Prior Confirmation Procedures on the Application of Laws and Regulations (Available in Japanese)

General inquiry on laws and regulations

• Written Inquiry Procedure for General Applicability of Laws and Regulations (Available in Japanese)
• Response to Inquiries on General Applicability of Laws and Regulations (Available in Japanese)

(4) Others

Basel II

• Basel II (New Capital Adequacy Framework) (Available in Japanese)

Q&As, etc.

• Trust Business Act Q&As (Available in Japanese)
• Q&As on Protection of Personal Information in the Financial Field
  • Main document (Available in Japanese (PDF: 240KB))
  • Appendix Form 1 (Word) (Available in Japanese)
  • Appendix Form 2 (Excel) (Available in Japanese)
• Q&As relating to Restructured Loans
  • Main document (HTML,  WORD,  PDF) (Available in Japanese)
• List of examples regarding the interpretation of laws and regulations on securities business (Available in Japanese)
• Reference Cases on Suspicious Transactions (Available in Japanese)

Others

• Approaches to the Disposal of Preferred Stock, etc. Acquired through Capital Injections with Public Funds (Available in Japanese)
• Basic Concepts regarding the Review of Business Revitalization Plans (Available in Japanese)
• On exercising the Right of Conversion for Convertible Preferred Stock (Available in Japanese)
• Clarification of the Principles regarding Administrative Measures concerning Follow-up on Recapitalized Banks (Part 2) (Available in Japanese)
• Rules regarding the Enhancement of Governance of Recapitalized Banks (Major Banks) (Available in Japanese)
• Partial Revision of Rules regarding the Enhancement of Governance on Recapitalized Banks (Regional Banks, etc.) (Available in Japanese)
• Clarification of the Principles regarding Administrative Measures concerning Follow-up on Recapitalized Banks (Available in Japanese)
• Administrative Measures concerning Follow-up on Recapitalized Banks (Available in Japanese)
• Action Concerning Consumer Credit Group Life Insurance (Request to Insurance Companies and the Life Insurance Association of Japan) (Available in Japanese)