Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Fryday, June 9, 2023, 8:45 am to 8:49 am)

Q.

Some media outlets have reported that Chiba Bank will be given an administrative action for selling structured bonds. What is your take on that? How will the FSA deal with structured bonds going forward?

A.

I’m aware of the reports you just mentioned.
At the moment, the Securities and Exchange Surveillance Commission has yet to issue a recommendation calling for an administrative action. So I will refrain from commenting on that. Generally speaking, however, structured bonds are too complex as products for some customers to understand. And those who have bought them may not be able to get a yield commensurate with the risks and costs involved.
In light of these characteristics, the FSA monitors whether financial institutions have appropriate arrangements in place to market and manage structured bonds. Do they appropriately understand their customers’ investment policies, experiences, and other matters, and advertise and sell such products accordingly? Do they provide substantial and easy-to-understand explanations about the risks and costs involved? These are some of the primary monitoring criteria.
We will remain committed to properly dealing with this issue.