What’s New on the FSA Website

Week of March 9, 2020 - March 13, 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 13, 2020

Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." along with the draft regulatory notice designating documents to be submitted to the FSA and ways to utilize information and communications technology pursuant to the provisions of Article 349 of the "Cabinet Office Order on Financial Instruments Business, etc." <Summary> The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." along with the draft regulatory notice designating documents to be submitted to the FSA and ways to utilize information and communications technology pursuant to the provisions of Article 349 of the "Cabinet Office Order on Financial Instruments Business, etc." Based on the fact that administrative procedures are now required to be implemented online in principle (pursuant to the enactment of the "Act on Partial Revision of the Act on Utilization of Information and Communications Technology in Administrative Procedure, etc. to Improve the Convenience of Stakeholders Who Engage in Administrative Procedures, and to Ensure Simplification and Efficiency of Administrative Operations by Leveraging Information and Communications Technology" [provisional English law title] in May 2019), in order to improve administrative procedures utilizing information and communications technology and ensure simplification and efficiency of administrative operations, the proposal intends to expressly set forth in the Guidelines the specifics of administrative procedures through online application.

March 13, 2020

Publication of the finalized amendments to the "Order for Enforcement of the Act on Special Measures for Productivity Improvement" <Summary> The FSA finalized the amendments to the "Order for Enforcement of the Act on Special Measures for Productivity Improvement." The amendments adopt new special measures where PoC (proof-of-concept) tests are to be conducted in regard to a new InsurTech/FinTech approach for (online) P2P (peer-to-peer) insurance to be provided by small-amount and short-term insurers, in response to requests through the application of the "regulatory sandbox system," by updating applicable provisions of the said Order. The amended Order and the other relevant applicable cabinet office order were enforced on March 13, 2020.

Press Releases

(The following press releases are available in English)

Others

March 13, 2020	Information on COVID-19 (Novel Coronavirus)
March 13, 2020	Joint Survey on the Use of LIBOR
March 13, 2020	Preparation for permanent cessation of LIBOR
March 10, 2020	Launch of a new global network for blockchain "Blockchain Governance Initiative Network" [BGIN]

 

(The following press releases are available in Japanese)

Securities

March 13, 2020	Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2019) <Summary> The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2019, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.
March 12, 2020	License granted to Eurex Clearing AG, a German clearing organization, to conduct "Financial Instruments Obligation Assumption Business" <Summary> The FSA granted a license to Eurex Clearing AG, a German clearing organization, to conduct "Financial Instruments Obligation Assumption Business," pursuant to the "Financial Instruments and Exchange Act."
March 12, 2020	Administrative actions against Fulham Co.,Ltd. and MLC investment Co.,Ltd., investment advisory and agency business operators (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took administrative actions against Fulham Co.,Ltd. and MLC investment Co.,Ltd., investment advisory and agency business operators, ordering the suspension of their business operations from March 12 to April 11, 2020 in terms of the solicitation for concluding new investment advisory contracts (inclusive of the conclusion of modification agreements that set out the increase in the advisory fee under the investment advisory contracts) and any other activities that pertain to the conclusion of new investment advisory contracts, and thereby ordering the improvement of their business operations pursuant to the "Financial Instruments and Exchange Act." These administrative actions are based on a recommendation from the Securities and Exchange Surveillance Commission (SESC) as a result of its on-site inspection.
March 9, 2020	Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau) <Summary> The FSA and the Kanto Local Finance Bureau issued warnings to entities including a notifier of specially permitted business for qualified institutional investors (SPBQII) that are operating financial instruments businesses without proper registration. (See updated lists of Japan-based entities* and foreign-based entities). * This list also includes the warned non-registered entities with untraceable/unidentified addresses.

 

Insurance

March 13, 2020

Request for financial measures to deal with Coronavirus Disease 2019 (COVID-19) affected parties (March 13, 2020) <Summary> The FSA issued a statement titled "Financial Measures to deal with Coronavirus Disease 2019 (COVID-19) Affected Parties (Mainly in the Insurance Industry Sector)" to insurance companies and other relevant financial institutions. Considering the increasing impact from the spread of COVID-19, where face-to-face consultations for concluding or continuing/renewing insurance contracts are becoming difficult for both insurance agents and (potential) insurance policy holders, the statement requests insurance companies and other relevant financial institutions to take appropriate measures for COVID-19-affected parties, such as supporting insurance agents while ensuring smooth continuation of insurance contracts for insurance policy holders, particularly from the customer protection perspective.

March 13, 2020

Approval granted to Frich Inc., an InsurTech company, in regard to its application for demonstrating a new technology PoC (proof-of-concept) scheme under the regulatory sandbox system pursuant to the "Act on Special Measures for Productivity Improvement" <Summary> The FSA has granted approval to Frich Inc., an InsurTech company, in regard to the application for demonstrating a new technology PoC (proof-of-concept) scheme under the regulatory sandbox system pursuant to the "Act on Special Measures for Productivity Improvement." The PoC project will be conducted under the special measures on regulations stipulated by the amended "Order for Enforcement of the Act on Special Measures for Productivity Improvement" along with the other relevant applicable cabinet office order which have been enforced on March 13, 2020.

 

Others

March 9, 2020	Warnings about entities that are operating money lending businesses without proper registration <Summary> The FSA (Local Finance Bureaus) updated warnings about entities that are operating money lending businesses without proper registration. The warnings include the updated list of entities that misrepresent their registration using fictitious or stolen registration numbers.