Japanese
March 31, 2023
Financial Services Agency
 

Response to the FSA’s Consulation on the Proposed Amendment of the Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc. regarding ESG Investment Trusts

1.Results of Public Comment

The FSA compiled and published the draft partial amendments to "the Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc.” between December 19, 2022 and January 27, 2023.
　The FSA received 323 comments on the draft from 56 individuals/entities. The FSA greatly appreciates those who submitted comments on the proposal. Please see Attachment 1 for the comments received and our response to them.

2.Key Points of the Amendments

The number of investment products which incorporate ESG (environmental, social and governance) factors in their names and investment strategies has been increasing both in Japan and overseas. At the same time, concerns over “greenwashing” that their actual investments may not be commensurate with such ESG claims are attracting attention globally. 
　Under these circumstances, the Financial Services Agency, Japan conducted a survey of 225 publicly offered investment trusts managed by 37 asset managers in Japan since November 2021, and compiled "Seven Expectations for Asset Management Companies managing ESG Investment Trusts (hereinafter referred as “the Seven Expectations”)" in the "Progress Report on Enhancing Asset Management Business 2022" released last May.
　Based on “the Seven Expectations”, we revised the comprehensive supervisory guidelines for financial instruments business operators (investment management business) to define specific points for supervisors to check the disclosure on publicly offered investment trusts, and the organizational resources and due diligence of asset managers regarding ESG.

　Please refer to the Attached Documents (Attachment 2 for Japanese and Attachment 3 for a provisional English translation)  for details of the amendment.

3.Date of Promulgation and Enforcement

The Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc. have been promulgated and come into effect as of today, March 31 2023.

(Attachment 2)

(Attachment 3)