Policy Plan for Promoting Japan as a Leading Asset Management Center

1. Overview

The Government of Japan has published "Policy Plan for Promoting Japan as a Leading Asset Management Center", with the aim to reform Japan’s asset management sector and asset ownership.

Under Prime Minister Kishida’s initiative toward a “new form of capitalism”, the government has been taking various measures to achieve a “virtuous cycle of growth and distribution” in which Japan's household savings flow more into productive investment, and the benefits of increased corporate value are returned to households, leading to further private sector investment and consumption.

To this end, the government has been reaching out to various entities in the investment chain to encourage the move, including through:

• Doubling Asset-based Income Plan, with the aim to support steady asset building by households, including drastic expansion and permanent establishment of NISA, tax exemption scheme for retail investors; and
• Corporate governance reforms, with the aim to promote sustainable corporate growth and increased corporate value over the medium- to long term.

"Policy Plan for Promoting Japan as a Leading Asset Management Center" is the remaining piece for the growth of Japan’s economy and Japanese people’s asset income. The Plan centers on: (i) reforming Japan’s asset management sector; (ii) reforming asset ownership in Japan; (iii) promoting financing for growth and diversifying investment opportunities; (iv) effective implementation of stewardship activities; and (v) strengthening public relations and communications.

• Policy Plan for Promoting Japan as a Leading Asset Management Center (Link to Cabinet Secretariat website)
• Policy Plan for Promoting Japan as a Leading Asset Management Center (Overview)(Prepared by FSA)
• Report of Working Group on Capital Market Regulations and Asset Management Task Force of the Financial System Council
• Publication of the Report by the Working Group on Tender Offer Rule and Large Shareholding Reporting Rule of the Financial System Council

2. New Initiatives

• Initiatives by the financial industry to enhance their asset management businesses
• Promotion of single-check calculation of net asset values of investment trusts
  • Publication of the finalized "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." after public consultation
• Policy Package to Achieve Special Zones for Financial and Asset Management Businesses
• Public-private initiatives to support new entrants of emerging asset managers (Japanese EMP)
• Asset Owner Principles (Link to Cabinet Secretariat website)
• Publication of the finalized “Venture Capitals: Recommendations and Hopes” (VCRHs)
• Japan Weeks
• Asset Management Forum (External website)

3. Ongoing Initiatives

• Doubling Asset-based Income Plan (Link to Cabinet Secretariat website)
• Initiatives for Corporate Governance Reform
• Dedicated International Financial Center