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

(Excerpt)

(Tuesday, August ８, 2023, 11:01 am to 11:12 am)
 

[Opening remarks:]

First, I would like to introduce “Japan Weeks” toward the realization of an international financial center.
The Government will advance its efforts to realize an international financial center in Japan and promote its efforts to make Japan a leading asset management center in the future.
As part of these efforts, from September 25 to October 6 this year, as “Japan Weeks”, we will intensively invite overseas investors, asset management companies, etc. to Japan and then disseminate the appeal of Japan as a financial and capital market and government initiatives.
During this period, we plan to hold a number of events on the promotion of savings to investment, policies to promote Japan as a leading asset management center, sustainable finance, etc., such as the annual meeting of the United Nations Principles for Responsible Investment. Prime Minister Kishida and I, the Minister of State for Financial Services, and other government officials are also planning to participate. The details will be announced on the website in due course. I hope you will check it out.
If you need detailed information of the event, please contact the administrative office.

[Questions and answers:]

Q.

My question is that as there are media reports that call for additional reporting on the allegations against the cartel of major non-life insurance companies, I would like to know the Minister's view, the responsibilities of each company, and the Financial Services Agency (FSA)'s policy on how to respond as the scope of the allegations widens.

A.

Regarding the alleged coordination of insurance premiums, the FSA requested the four major non-life insurance companies to report the details of the facts, etc. by June in accordance with laws and regulations.
In this request, we have asked these non-life insurance companies to collect a wide range of information, including not only conduct that immediately violates the Antimonopoly Act but also conduct that is inappropriate in light of the purpose of the same Act. So far, we have received some reports from them.
And as we found a wide range of possible cases of inappropriate price coordination, we concluded that it is necessary to conduct a more comprehensive and in-depth examination.
For this reason, on Friday, August 4, we issued an order to request a report to see if there were any other similar inappropriate incidents at all of their sales divisions and branches, and to request additional review.
Since insurance companies should establish a system for compliance with laws and regulations, including the Antimonopoly Act, and appropriately protect policyholders, etc., the FSA intends to closely examine the content of reports, and if any problems are found, to take strict measures based on laws and regulations.

Q.

When is the deadline for an additional report you asked for on August 4? When do you want them to submit it?

A.

We want them to submit it as soon as possible.

Q.

I would like to ask about Credit Suisse AT1 bonds. In April, in response to the problem of Credit Suisse AT1 bonds wipeout, the FSA said that it would check and follow up on the sales situation of securities companies. Recently, there have been new developments such as individual investors who have suffered losses filing lawsuits against securities companies. Could you tell us the latest status of your review and follow-up? We would also like to know your views on how the FSA will respond if any inappropriate cases are found in the follow-up.

A.

As for Credit Suisse AT1 bonds, I am aware that this bond has basically a special provision about the possibility that it becomes worthless. That was in April.
Since then, we have not received any new reports, and I cannot answer them here, but I have the basic understanding I mentioned earlier.

Q.

JACCS CO., LTD. stopped accepting new car loans from BIGMOTOR yesterday. People and companies are moving away from BIGMOTOR at an accelerated pace and this may hurt its sales. Please tell us your view on this matter as the Minister of State for Financial Services.

A.

As I saw the article in this morning's newspaper, it is an individual transaction of a business company, so I think it is the judgment of the company.
As such, I would like to refrain from commenting on this as I do not think it is appropriate to comment as a supervisory authority.