What’s New on the FSA Website

Week of April 27, 2020 - May 8, 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)

May 8, 2020	Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" <Summary> The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators." The proposal pertains to contemplated updates from the scheduled repeal of the "Inspection Manual for Financial Instruments Business Operators," which is under the purview of the Securities and Exchange Surveillance Commission (SESC).
May 1, 2020	Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" <Summary> The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators." The amendments add points which require particular attention in regard to commodity-related market derivatives transactions in anticipation of the commencement of transactions at comprehensive exchanges pursuant to the "Act for Partial Revision of the Financial Instruments and Exchange Act, etc." (Act No. 86 of 2012). The amended Guidelines have been enforced since May 1, 2020.
April 30, 2020	Publication of the updated Cabinet Order Providing the Date Specified by the Cabinet Order as Prescribed in Article 2, Paragraph (4) of the Supplementary Provisions of the Act for Partial Revision of the Banking Act, etc." alongside the "Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act, etc." <Summary> The FSA updated the "Cabinet Order Providing the Date Specified by the Cabinet Order as Prescribed in Article 2, Paragraph (4) of the Supplementary Provisions of the Act for Partial Revision of the Banking Act, etc." alongside the "Cabinet Office Order to Amend the Ordinance for the Enforcement of the Banking Act, etc." While an electronic settlement agent must conclude a contract with a financial institution (such as a bank) to engage in electronic settlement services pursuant to the "Banking Act," a grace period until May 31, 2020, is granted for the conclusion of contracts on the provision of reference system services (such as with respect to household account book apps (applications) and accounting services). Amid the widespread impact of coronavirus disease 2019 (COVID-19), due to which a nationwide state of emergency over COVID-19 has been declared, it is deemed that parties (such as an electronic settlement agent and a bank) who have been mutually intending to conclude a bilateral contract may not be able to do so by the statutory due date. In response to such circumstances, the updates to the Cabinet Order and the Cabinet Office Order mentioned above extend the grace period until September 30, 2020, for those who have been mutually intending to conclude a bilateral contract but unable to meet by the original statutory due date, May 31, 2020 due to the impact of COVID-19. The updated Cabinet Order and the Cabinet Office Order have been enforced since April 30, 2020.
April 28, 2020	Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business" and the finalized amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" <Summary> The FSA has finalized the "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business" and the amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators." The amendments mainly require electronic trading platform management service providers to: preserve all order data including all order modifications and cancellations, as part of its regulatory obligations to preserve transaction data for a period of 10 years; and obtain a user agreement from each market participant. Such agreement must set forth that the market participant will (i) abide by the electronic trading platform management service provider’s business rules; and (ii) produce to the electronic trading platform management service provider information and documents related to its trading on the electronic trading platform upon the provider’s request. The amendments have been enforced since April 28, 2020.

Press Releases

(The following press releases are available in English)

Publication

May 1, 2020	FSA publishes English translation of monthly magazine, Access FSA No.200

 

Others

May 7, 2020	Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
May 1, 2020	Stewardship Code : 281 institutional investors have signed up to the Principles for Responsible Institutional Investors as of April 30, 2020
April 30, 2020	Updated statistics of money lending business

 

(The following press releases are available in Japanese)

Banks

April 30, 2020

Overview of modifications to lending conditions by financial institutions <Summary> The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10 to 31, 2020.

April 30, 2020

Information sharing on cases regarding unauthorized use of bank accounts <Summary> The FSA and local finance bureaus provide information regarding unauthorized use of bank accounts to relevant financial institutions and law enforcement authorities after obtaining consents from informants. The FSA has published statistics that include the number of information sharing on cases regarding unauthorized use of bank accounts until March 31, 2020 since September 2003, along with the corresponding actions taken by financial institutions.

 

Others

May 8, 2020	Summary of the fifth meeting of the "Networking Group on the corporate disclosure, financial reporting and audit of listed companies in Consideration of the Impact of the COVID-19 (Novel Coronavirus) Infection" (provisional English title) <Summary> The FSA has held the fifth meeting of the "Networking Group on the corporate disclosure, financial reporting and audit of listed companies in Consideration of the Impact of the COVID-19 (Novel Coronavirus) Infection" (provisional English title) by way of audio-conferencing. The Networking Group members* shared their views on the extended nationwide state of emergency as well as their updates on the future outlook on COVID-19's impact. * The Securities Analysts Association of Japan (SAAJ) has become a new member of the Networking Group since its fourth meeting (audio-conference) held on April 24, 2020. In the fourth meeting, the members shared updates and future perspectives on COVID-19's impact subsequent to the Networking Group's publication of a statement entitled "Corporate Year-End Closing of Accounts, Auditing and Shareholders meeting in Response to the Increasing Impact of COVID-19 (Novel Coronavirus)" as of April 15, 2020.
May 1, 2020	Publication of the updated "Guidelines for Administrative Processes" regarding virtual currency (crypto-asset) exchange service providers <Summary> The FSA has updated the "Guidelines for Administrative Processes" regarding virtual currency (crypto-asset) exchange service providers. The updates mainly pertain to technical amendments to reflect the name change of a general incorporated association, entitled Japan Virtual and Crypto assets Exchange Association, and the change of the title of the self-regulatory rules set forth by the association. The updates have been enforced since May 1, 2020.
May 1, 2020	Warning against multiple-debt risks incurred by using factoring services with high factoring fees <Summary> The FSA issued a warning against multiple-debt risks incurred by using factoring services with high factoring fees. The FSA alerts business owners affected by coronavirus disease 2019 (COVID-19) to beware of risks incurred by using factoring services for the purpose of meeting their immediate cash needs, in which business owners sell their accounts receivables to factoring service providers at a discount (equal to interest plus service fees). Factoring agreements with high factoring fees can worsen the cash flow of corporate borrowers, triggering multiple-debt risks. The FSA urges business owners who are affected by COVID-19 and have cash flow problems to refer to "Information on COVID-19 (Novel Coronavirus)" on the FSA's website, which contains information on points of contact for financial support for business owners affected by COVID-19.
April 30, 2020	Authorization of Japan Security Token Offering Association and Japan Virtual Currency Exchange Association as certified associations for financial instruments business operators <Summary> The FSA authorized Japan Security Token Offering Association and Japan Virtual Currency Exchange Association, respectively as certified associations for financial instruments business operators pursuant to the "Financial Instruments and Exchange Act."
April 30, 2020	The first project selected for "Enterprise System and Frontrunner Support-Hub" <Summary> Following the establishment of "Enterprise System and Frontrunner Support-Hub," the FSA accepted the application from THE SHIZUOKA BANK, LTD. as the first project which fulfilled all requirements for the FSA to provide its support through the hub. The bank is considering introducing an enterprise system for payment and settlement that utilizes open system technologies, allowing free selection of hardware and enabling flexible connectivity with external services through componentization of system functionalities.