What’s New on the FSA Website

Week of June 22, 2020 - June 26, 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)

June 26, 2020	Publication of the draft "Order to Amend the Ordinance for Enforcement of the Act on Utilization of Funds Related to Dormant Deposits to Promote Public Interest Activities by the Private Sector" and the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." <Summary> The FSA published the draft "Order to Amend the Ordinance for Enforcement of the Act on Utilization of Funds Related to Dormant Deposits to Promote Public Interest Activities by the Private Sector" and the draft amendments to the  "Comprehensive Guidelines for Supervision of Major Banks, etc." The proposal mainly intends to: review the circumstances of the renewal of the last transaction date in a dormant account such as combined multi-purpose account; and expressly set forth in the Comprehensive Guidelines that the FSA collaborates with the Deposit Insurance Corporation of Japan (DICJ) in terms of following up on their on-site inspections of financial institutions on procedures and others for the transfer and management of funds pertaining to dormant deposits at financial institutions pursuant to the "Act on Utilization of Funds Related to Dormant Deposits to Promote Public Interest Activities by the Private Sector."
June 26, 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 pertain 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). The amendments have been enforced since June 26, 2020.
June 26, 2020	Publication of the finalized amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers <Summary> The FSA finalized the amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers. The amendments mainly update the Guidelines in line with the "JFSA's supervisory approaches –Replacing checklists with engagement –" and from the viewpoint of optimizing the whole screening process/methodology in terms of screening specifics, expedition and efficiency in regard to the registration application of prepaid payments instruments issuers and funds transfer service providers. The amended Guidelines have been enforced since June 26, 2020.
June 25, 2020	Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business" <Summary> The FSA has finalized the "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business." While a rule for the phase-in schedule and transitional arrangement has been adopted for the application of margin requirements for non-centrally cleared derivatives transactions in Japan since its enforcement in September 2016, the amendments mainly defer the final two implementation phases of margin requirements for non-centrally cleared derivative transactions by one year. The aim of the deferral is to provide a certain operational capacity for firms to respond to the immediate impact of coronavirus disease 2019 (COVID-19), in consistence with the deferred implementation phases of margin requirements for non-centrally cleared derivatives transactions announced by the BCBS* and the IOSCO** on April 3, 2020. The amendments have been enforced since June 25, 2020. * BCBS stands for Basel Committee on Banking Supervision. ** IOSCO stands for International Organization of Securities Commissions.
June 23, 2020	Publication of the draft amendments to the "Cabinet Office Order on Disclosure Required for Tender Offer for Share Certificates, etc. by Person Other than Issuer" and to the "FAQ on Tender Offer for Share Certificates, etc." (provisional English title) <Summary> The FSA has published the draft amendments to the "Cabinet Office Order on Disclosure Required for Tender Offer for Share Certificates, etc. by Person Other than Issuer" and to the "FAQ on Tender Offer for Share Certificates, etc." (provisional English title). The proposal mainly intends to remove certain entry items of documents for the disclosure in regard to tender offer for share certificates, in response to requests for deregulation from the financial sector and relevant industry organizations. Comments on the proposal will be accepted until July 27, 2020.

Press Releases

(The following press releases are available in English)

International 

June 25, 2020	Announcement of the new dates of BG2C, FIN/SUM BB

 

Banks

June 26, 2020	Bank of Japan Review: Developments in Overseas Credit Investment and Lending by Japanese Financial Institutions

 

Insurance

June 23, 2020	Overview of financial results of major insurance companies as of March 31, 2020

 

Others

June 24, 2020	Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
June 23, 2020	FSA updated Information on COVID-19 (Novel Coronavirus)

 

(The following press releases are available in Japanese)

Banks

June 26, 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 May 31, 2020.
June 26, 2020	Updated list of support agencies for business innovation <Summary> The FSA published an updated list of support agencies for business innovation pursuant to the "Small- and Medium-sized Enterprises Business Enhancement Act, etc." (There were no financial institutions newly authorized this time).

 

Securities

June 2４, 2020

Publication of the list of financial business operators that conducted large-scale OTC derivative transactions in FY 2019" <Summary> The FSA published, complying with the "Cabinet Office Order on Restrictions on Over-the-Counter Derivatives Transactions," the list of financial instruments business operators whose average monthly total notional principal amount of OTC derivative transactions in FY2019 was 300 billion yen or more.

June 23, 2020

Administrative action against Progress Mind Co.,Ltd. (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took an administrative action against Progress Mind Co.,Ltd. ordering the revocation of the entity’s registration and the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act." This administrative action is based on a recommendation from the Securities and Exchange Surveillance Commission (SESC) as a result of its on-site inspection.

 

Others

June 26, 2020	Warnings issued to Bitforex Limited and AMANPURI Co.,Ltd that are operating virtual currency exchange businesses without proper registration <Summary> The FSA issued warnings to Bitforex Limited and AMANPURI Co.,Ltd that are operating virtual currency (crypto-asset) exchange businesses without proper registration in violation of the "Payment Services Act."
June 26, 2020	Publication of the assessment report on the FSA's monitoring implementation status from viewpoints of financial institutions based on a series of consultation with financial institutions by a third-party consulting service provider <Summary> The FSA sets out in its "JFSA's supervisory approaches" to introduce a third-party assessment on the FSA’s supervisory approaches by experts who are well-versed in business improvement and governance practices for the quality improvement in the FSA’s financial administration such as in respect of working-level supervisory approaches inclusive of monitoring practices. In this regard, the FSA has entrusted Protiviti Inc., a third-party consulting service provider, to conduct the assessment on the FSA’s monitoring practices through a series of consultation with financial institutions, and thereafter published on its website the assessment report on the FSA’s monitoring implementation status from viewpoints of financial institutions which was compiled by the said consulting service provider.
June 25, 2020	Establishment of the "Working Group on a Review of Procedures for Paperwork, Signing and Sealing, and in-Person Responses/Services in the Financial Sector" (provisional English title) and the publication of the agenda and handouts of its first and second meetings <Summary> The FSA has established the "Working Group on a Review of Procedures for Paperwork, Signing and Sealing, and in-Person Responses/Services in the Financial Sector" (provisional English title) and published the agenda and handouts of its first and second meetings, which were respectively held on June 9 and 22, 2020.
June 23, 2020	Establishment of the "Study Group on Impact Investment" and its first meeting <Summary> On June 18, 2020, the FSA and the National Advisory Board of the Global Steering Group for Impact Investment jointly held the first meeting of "Study Group on Impact Investment." The Study Group was established to deepen the understanding about "impact investment" among financial market players as well as the government authorities. Meetings will be held on a regular basis.