(Provisional Translation)
January 30, 2006
Financial Services Agency, Japan

The framework (Terms of Reference) of the High-Level Dialogue between Financial Services Agency and the US Securities and Exchange Commission

1. On January 27, Financial Services Agency (''FSA'') of Japan and the Securities and Exchange Commission of the United States (''SEC'') agreed on the framework of the regular high-level bilateral dialogues (''Dialogue''), namely, terms of reference.

   • (Note)  The initial agreement to have the Dialogue was reached in May 2005, with its first meeting held in Tokyo in June. At the first Dialogue, they exchanged views on commonly interested issues, such as Investment Service Law, enhancement of corporate governance, convergence of accounting standards, etc.

2. The agreed framework set forth the objectives, timing and venue, participants and agenda of the Dialogue. Accordingly, FSA and SEC will hold regular meetings between their senior staff and high-level officials, to exchange views on issues of common interest pertaining to the securities markets in both countries and promote cooperation in addressing issues of common interest so identified.
3. The specific issues to be addressed in the Dialogue will be determined through consultation between the FSA and the SEC: the following issues for discussion have already been identified as the agenda items for 2006: accounting and auditing standards, corporate governance and internal controls, approaches to securities companies, self-regulated entities, etc., cross-border cooperation and information sharing on enforcement matters and approaches to facilitating technological advances in securities markets.

• (Appendix 1)Letter from FSA Commissioner to SEC Chairman (PDF:22KB)
• (Appendix 2)Agreed Terms of Reference (PDF:25KB)