Financial Services AgencyFSA Weekly Review No.394

June 4, 2020

What’s New on the FSA Website

Week of May 25, 2020 - May 29, 2020

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

Public Comments

(The following public comment is available in Japanese)

May 29, 2020 Publication of the draft amendments to the FSA's regulatory notice concerning the "designated IFRSs"open new window
<Summary>
The FSA proposed the draft amendments to the regulatory notice concerning the "designated IFRSs" stipulated in the "Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements." The proposal mainly intends to define the international accounting standards that have been published through May 31, 2020, by the IASB (International Accounting Standards Board) as "designated international accounting standards" set forth under Article 93 of the Regulation on Consolidated Financial Statements.

Press Releases

(The following press releases are available in English)

Publication

May 29, 2020 PDFFSA publishes English translation of monthly magazine, Access FSA No.201open new window

 

Others

May 28, 2020 Updated statistics of money lending business
May 28, 2020 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
May 27, 2020 FSA updated Information on COVID-19 (Novel Coronavirus)
May 27, 2020 Statement by Minister for Financial Services, Amendment to the “Act on Special Measures for Strengthening Financial Functions”

 


(The following press releases are available in Japanese)

Banks

May 28, 2020 Overview of modifications to lending conditions by financial institutionsopen new window
<Summary>
The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10 to April 30, 2020.
May 27, 2020 Publication of the updated "Comprehensive Guidelines for Supervision of Major Banks, etc." in regard to clarification of the handling of quasi-equity loans (using financial technique such as DDS* [debt for debt swap])open new window
<Summary>
The FSA has updated the "Comprehensive Guidelines for Supervision of Major Banks, etc." in regard to clarification of the handling of quasi-equity loans (with the use of a financial technique such as DDS* [debt for debt swap]) . Due to the widespread impact of COVID-19, many businesses are increasingly facing cash flow difficulties from the unprecedented business disruption. As a method to enhance their capital to achieve smooth resumption and recovery of their normal business, the FSA, for clarification, has expressly set forth its perspective in the said Guidelines that a financial institution may proactively utilize quasi-equity loans (with a financial technique such as DDS [debt for debt swap]*) for their corporate clients' business turnaround.

* DDS is a financial technique that can be used to support a corporate borrower's business turnaround, by exchanging a part of an existing corporate borrower's debt for a subordinated debt. With this technique, the subordinated debt is treated as quasi-equity (instead of a liability) in financial accounting, which accordingly enhances the corporate borrower's loan eligibility where the corporate borrower's repayment can be suspended for a long period of time (due to the nature of subordinated debt, which ranks after other debts for repayment), thereby alleviating the borrower's cash flow shortfalls to ensure its business continuity.
May 27, 2020 "Regional Banking Summit (RE: ing/SUM)" and "Nikkei Regional Revitalization Forum" jointly organized by the FSA and Nikkei Inc.open new window
<Summary>
The FSA and Nikkei Inc. will jointly hold the "Regional Banking Summit (RE: ing/SUM) and "Nikkei Regional Revitalization Forum" on June 16, 2020. Particularly with regard to regional banking in the new Japanese era, Reiwa, the Summit (Re: ing/SUM) is an event to encourage attendees to think about the sustainable future that regional leaders/players would like to create by leveraging the potential of regional banking in collaboration with a wide range of stakeholders based on the following concepts:
  1. [Release]: Release thoughts/ideas and breakthrough mental barriers to foster mutual and common understanding with stakeholders
  2. [Remarkable]: Offer/share remarkable ideas and practices
  3. [Redesign]: Aim at redesigning/rebuilding sustainable banking business models toward the further enhancement of regional banking resilience

 

Securities

May 27, 2020 Administrative penalty charge against an individual for market manipulation regarding stocks of Toyo Gosei Co.,Ltd.open new window
<Summary>
On May 7, 2020, the FSA issued an order to impose an administrative penalty charge against an individual for market manipulation regarding stocks of Toyo Gosei Co.,Ltd.

 

Others

May 29, 2020 The seventh project selected for "FinTech PoC (Proof-of-Concept) Hub"open new window
<Summary>
The FSA selected the seventh PoC project which fulfilled all requirements to provide its support through "FinTech PoC Hub." (This PoC project is related to the "Financial Instruments and Exchange Act").
May 28, 2020 Publication of the updated list of financial institutions signing up to the "Principles for Customer-Oriented Business Conduct" and publicizing their respective customer-oriented business conduct and KPIs (key performance indicators) (as of the end of March 2020)open new window
<Summary>
The FSA updated the list of financial institutions signing up to the "Principles for Customer-Oriented Business Conduct" and publicizing their respective customer-oriented business conduct and KPIs (key performance indicators) inclusive of the common KPIs comparable across investment trust distributors by the end of March 2020 in order to visualize financial institutions' initiatives and efforts. The FSA aims at encouraging financial institutions to further "visualize" their customer-oriented business conduct.
May 28, 2020 Publication of the monitoring results pertaining to the implementation status of customer-oriented business conduct taken by financial institutions (as of the end of March 2020)open new window
<Summary>
The FSA has been monitoring financial institutions from macro- and micro-perspectives as to whether their business approaches and initiatives reflect customer-oriented business conduct on a regular basis. To further ensure their "visualization" of such customer-oriented business approaches and initiatives from the external customer perspective, the FSA has published the updated monitoring results pertaining to the implementation status of customer-oriented business conduct taken by financial institutions as of the end of March 2020.
May 25, 2020 Summary of the seventh 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)open new window
<Summary>
The FSA has held the seventh 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 information on the report titled "Corporate Disclosure in Consideration of the Impact of COVID-19 (Novel Coronavirus)"open new window (provisional English title [available only in Japanese]) published by the FSA on May 21, 2020, as well as information on initiatives and efforts that have been taken so far and are to be taken by the group members in response to COVID-19.

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