Financial Services AgencyFSA Weekly Review No.383

March 12, 2020

What’s New on the FSA Website

Week of March 2, 2020 - March 6, 2020

This page contains the latest in events, developments, and updates to the FSA website.

Public Comments

(The following public comments are available in Japanese)

March 6, 2020 Publication of the finalized amendments to the "Cabinet Office Order on Disclosure of Corporate Affairs"open new window
<Summary>
The FSA finalized the amendments to the "Cabinet Office Order on Disclosure of Corporate Affairs."
The amendments expressly set forth that first-time adopters of reporting based on IFRS (International Financial Reporting Standards), who once disclosed the comparison of reporting based on JGAAP (Japanese Generally Accepted Accounting Principles) and IFRS, will no longer be required to disclose comparison reporting from the second year on. The amended Cabinet Office Order was enforced on March 6, 2020.
March 6, 2020 Publication of the finalized cabinet office order to amend the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements"open new window
<Summary>
The FSA finalized the cabinet office order to amend the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements," following the ASBJ’s publication of an accounting standard for fair value measurement (ASBJ Statement No.30) and its implementation guidance (ASBJ Guidance No.31). The amended Regulation was enforced on March 6, 2020.
March 5, 2020 Publication of the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Act on Utilization of Information and Communications Technology for the Facilitation of Effective Administration Pertaining to Finance Related Laws and Regulations Under the Jurisdiction of the Cabinet Office"open new window
<Summary>
The FSA published the draft "Cabinet Office Order to Amend the Ordinance for Enforcement of the Act on Utilization of Information and Communications Technology for the Facilitation of Effective Administration Pertaining to Finance Related Laws and Regulations Under the Jurisdiction of the Cabinet Office." The proposal is mainly intended to allow online administrative application without digital signatures/certificates.
March 4, 2020 Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc."open new window
<Summary>
The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." In response to the recent exponential development in information and communication technology, and to the amendments to the "Banking Act" made in May 2019, the amendments set forth focal points for financial institutions in regard to obtaining consent from financial services users prior to sharing personal information of those users with third parties. The amended Guidelines were enforced on March 4, 2020.
March 3, 2020 Publication of the results of consultation on draft amendments to the regulatory notices pertaining to Pillar 1 requirements of capital adequacyopen new window
<Summary>
The FSA published the results of consultation on draft amendments to the regulatory notices pertaining to Pillar 1 requirements of capital adequacy. The amendments mainly revise the capital adequacy regulation on double gearing (restriction on banks' investments in other banks), which exempts banks' investments contributing to the effective and ongoing financial intermediary function of regional banks. The enforcement dates for the amended regulatory notices will be announced in due course.

Press Releases

(The following press releases are available in English)

International 

March 3, 2020 Exchange of Letters on Cooperation in the area of supervision with the Banco Central do Brasil
March 2, 2020 Notice of postponing BG2C and FIN/SUM BB

 

Others

March 3, 2020 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
March 2, 2020 The European Financial Forum 2020 - Speech by MIYASHITA Ichiro, State Minister for Financial Services

 


(The following press releases are available in Japanese)

Banks

March 3, 2020 Publication of the implementation report of the Business Strengthening Plans (as of September 2019)open new window
<Summary>
The FSA published the implementation report of the Business Strengthening Plans (as of September 2019) pursuant to the "Act on Special Measures for Strengthening Financial Functions."
March 3, 2020 Cabinet decision on the bill to amend the "Act on Special Provisions of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade to Maintain Essential Services for Local Residents in Municipalities in Regard to General Passenger Ride-Sharing Motor Carrier Services and Banking Business" (provisional English law title)open new window
<Summary>
The FSA shared on its website that the Cabinet decision on the bill* to amend the "Act on Special Provisions of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade to Maintain Essential Services for Local Residents in Municipalities in Regard to General Passenger Ride-Sharing Motor Carrier Services and Banking Business" (provisional English law title) was made to ensure sustainable essential services** for local residents in municipalities rendered by ride-sharing motor carrier service providers and regional banks.
The amendment bill exempts certain cases of business enhancement through mergers and/or joint management among motor carrier service providers, regional banks or others in municipalities that may conflict with the "Act on Prohibition of Private Monopolization and Maintenance of Fair Trade." 

*   This amendment bill is under the joint jurisdiction of the Cabinet Secretariat, the FSA, and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

** Ride-sharing motor carrier services provided by such service providers and regional banks in the respective municipalities are "essential services" that are the basis for the lives and economic activities of local residents, being difficult to be replaced by other operators/providers. The existing service providers and regional banks are facing difficulties in providing "essential services" in a sustainable manner due to reasons such as declining population.

 

Others

March 6, 2020 Submission of the bill to amend the "Act on Sales, etc. of Financial Instruments, etc. for the Improvement of Convenience for and Protection of Financial Services Users" (provisional English law title) to the Dietopen new window
<Summary>
The FSA has announced on its website that the bill to amend the "Act on Sales, etc. of Financial Instruments, etc. for the Improvement of the Convenience for and Protection of Customers of Financial Services" (provisional English law title) has been submitted to the Diet. The amendment bill is mainly aimed at;

(1) creating a new regulatory framework suited for cross-sectoral financial brokers who provide a wide variety of financial services on a one-stop basis, and

(2) introducing flexible and tailored regulations on money transfer service providers in accordance with the amount of money they transfer.
March 6, 2020 The director-general level triparty liaison meeting among the National Police Agency, the FSA, and the Consumer Affairs Agency regarding virtual currency (crypto-asset) exchange service providersopen new window
<Summary>
On February 28, 2020, the National Police Agency, the FSA, and the Consumer Affairs Agency jointly held a the director-general level triparty liaison meeting regarding approaches/measures taken so far toward virtual currency (crypto-asset) exchange service providers, deemed-virtual currency (crypto-asset) exchange service providers, and entities that are providing virtual currency (crypto-asset) exchange services without proper registration, as well as warnings to raise the awareness of financial service users against risks entailed in virtual currency (crypto-asset) exchange services and potential illegal practices provided particularly by non-listed service providers.
March 6, 2020 General legal interpretation on the regulatory applicability of the "Money Lending Business Act" in response to a written inquiry regarding a certain business conducted by a financial service provideropen new window
<Summary>
The FSA has shared on its website a general legal interpretation on the regulatory applicability* of the "Money Lending Business Act" in response to a written inquiry regarding a (prepayment salary) business conducted by a financial service provider in which the financial service provider delivers money (cash) to workers (employees) of certain entities prior to their paydays in exchange for the acquisition of monetary claims held by the workers (employees) against their employers, whereby the financial service provider later collects money through the execution of the monetary claims implemented by the said workers (employees).  The FSA has responded to the inquiry that the business scheme in the above context falls within the scope of money lending business. (Please refer to PDFits detailed reasoningopen new window [available only in Japanese]). 

* In this context, this means the applicability as to whether a certain business falls under the category of being a money lending business.

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