What’s New on the FSA Website

Week of April 23, 2021 - May 6, 2021

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

Public Comments

(The following public comments are available in Japanese)

April 30, 2021	Publication of the draft amendments to the FSA's regulatory notice concerning the "designated IFRSs" <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, 2021, by the IASB (International Accounting Standards Board) as "designated international accounting standards" set forth under Article 93 of the Regulation on Consolidated Financial Statements.
April 30, 2021	Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" <Summary> The FSA has finalized the amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions." The amendments expressly set forth the perspective of adapting to the so-called "new normal" circumstances and improving business/operational productivity, taking into account the prolonged impact of COVID-19 and others. In particular: in terms of IT governance, under the "new normal" circumstances, it will become increasingly essential for regional financial institutions to develop their information and communication infrastructure/platform using e-mails, etc. as a means of communication within financial institutions and with customers, and sharing expertise and know-how with other financial institutions across organizations and regions can be a way to improve the competence of their sales representatives in ensuring effective financial intermediation. The amendments have taken effect since April 30, 2021.
April 26, 2021	Publication of the draft amendments to the "Ordinance for Enforcement of the Money Lending Business Act" <Summary> The FSA has published the draft amendments to the "Ordinance for Enforcement of the Money Lending Business Act." In response to the enforcement of the "Act on Promotion of Development of Specified Integrated Resort Districts" (Act No. 80 of 2018), the proposal mainly intends to reflect in the Ordinance for Enforcement the corresponding updates to the "Act for Prevention of Transfer of Criminal Proceeds" and the "Ordinance for Enforcement the Act for Prevention of Transfer of Criminal Proceeds."
April 26, 2021	Publication of the finalized regulatory notice designating market transactions of derivatives for the purpose of conducting cover-deals for specified currency-related over-the-counter (OTC) derivatives transactions based on Article 68, Paragraph 1, Item 3 of the "Cabinet Office Order on Financial Instruments Exchanges, etc." <Summary> The FSA published the finalized regulatory notice designating market transactions of derivatives for the purpose of conducting cover-deals for specified currency-related over-the-counter (OTC) derivatives transactions based on Article 68, Paragraph 1, Item 3 of the "Cabinet Office Order on Financial Instruments Exchanges, etc." While market transactions of derivatives using a LG (Letter of Guarantee) issued by a bank as the substitute securities are currently limited to those designated by the FSA, the proposal mainly intends to designate market transactions of derivatives for the purpose of conducting cover-deals for specified currency-related over-the-counter (OTC) derivatives as FX-clearing transactions which are set forth under Article 2 Trading Member Regulations of Tokyo Financial Exchange, Inc. The amendments were enforced on April 26, 2021.
April 23, 2021	Publication of the draft amendments to the regulatory notice pertaining to the standard policy reserve system <Summary> The FSA proposed the draft amendments to the regulatory notice and others pertaining to the standard policy reserve system. While foreign currency-denominated insurance policies are currently excluded from the scope of standard policy reserve system, in light of the increase in the amount of the said insurance policies in force over the past few years, the proposal is aimed at updating the scope of insurance policies subject to the standard policy reserve system by including therein the said foreign currency-denominated insurance policies from the perspective of creating a sound competitive environment in the insurance business sector.
April 23, 2021	Publication of the finalized regulatory notice designating certain rules based on the "Cabinet Office Order on Crypto-Assets (Virtual Currency) Exchange Service Providers" <Summary> The FSA published the finalized regulatory notice designating certain rules based on the provision of Article 25, Paragraph 7 of the "Cabinet Office Order on Crypto-Asset (Virtual Currency) Exchange Service Providers." In margin trading of crypto-assets, when all or part of the security deposit to be received by a crypto-asset exchange service provider is substituted by certain crypto-assets, the substitute price shall be the amount set forth in the rules of the Certified Association for Payment Service Providers* certified by the FSA. The amendments designate the "Rules for Crypto-Asset Margin Trading" (provisional English title) set forth by Japan Virtual and Crypto Assets Exchange Association (JVCEA) as applicable rules in margin trading of crypto-assets. The amendments have taken effect since May 1, 2021. * The term "Certified Association for Payment Service Providers" in this context means a general incorporated association that has been granted certification by the FSA.
April 23, 2021	Publication of the finalized regulatory notice designating certain rules based on the "Cabinet Office Order on Financial Instruments Business, etc." <Summary> The FSA published the finalized regulatory notice designating certain rules based on (the provisions of Article 117, Paragraph 38, Item 2 and Paragraph 48 of) the "Cabinet Office Order on Financial Instruments Business, etc." In transactions of crypto-asset-related derivatives and regulated crypto-asset-related OTC (over-the-counter) derivatives, when all or part of the security deposit to be received by a financial instruments business operator is substituted by certain crypto-assets, the substitute price shall be the amount set forth in the rules of the Financial Instruments Firms Association certified by the FSA, if there is no such amount set forth in the provision of Article 68, Paragraph 2 of the "Cabinet Office Order on Financial Instruments Business, etc." (Cabinet Office Order No. 54 of 2007). In this regard, the amendments expressly designate the rules of Financial Instruments Firms Associations certified by the FSA as applicable rules in transactions of crypto-asset related derivatives and regulated crypto-asset-related OTC derivatives. The amendments have taken effect since May 1, 2021.
April 23, 2021	Publication of the draft "Cabinet Office Order to Amend the Detailed Regulations on the Mutual Loan Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and others <Summary> The FSA published the draft "Cabinet Office Order to Amend the Detailed Regulations on the Mutual Loan Business Act" and the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and others. The proposal mainly intends to provide technical amendments to the relevant applicable Cabinet Office Orders and Guidelines, including the aforementioned, which are under the purview of the FSA, in order to renew certain procedures regarding paperwork, seals, and in-person meetings between the private sectors and between the public and private sectors.

 

Press Releases

(The following press releases are available in English)
International

April 28, 2021	The New GLOPAC Web Page Is Now Ready

Others

April 30, 2021	Updated statistics of money lending business
April 28, 2021	Revision of the Corporate Governance Code
April 28, 2021	Stewardship Code : 304 institutional investors have signed up to the Principles for Responsible Institutional Investors as of March 31, 2021
April 28, 2021	Vitrtual Meeting of the International Forum of Independent Audit Regulators (IFIAR)
April 28, 2021	Deputy Commissioner for International Affairs Elected New Vice Chair of the International Forum of Independent Audit Regulators (IFIAR)

(The following press releases are available in Japanese)

Councils

April 28, 2021

Updated one-stop access to the information on meetings 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) (Update on the 12th meeting) <Summary> The FSA updated the one-stop access to the information on meetings of "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). The latest update mainly pertains to the 12th meeting held on April 28, 2021.

April 23, 2021

Publication of the agenda and handouts of the 51st meeting of the Audit Standard Committee of the Business Accounting Council <Summary> The FSA published the agenda and handouts of the 51st meeting of the Audit Standard Committee of the Business Accounting Council, which was held on April 26, 2021.

 

Banks

April 30, 2021	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, 2021 since September 2003, along with the corresponding actions taken by financial institutions.
April 28, 2021	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, 2020, to March 31, 2021.* * The majority of the data reflects the data until March 31, 2021, whereas the data of cooperative financial institutions reflects the data until December 31, 2020.
April 27, 2021	Call for participants from financial institutions in the trial of a business support know-how-sharing website (the first round entry of additional registration) <Summary> The FSA completed a trial of a business support know-how sharing website for employees of regional financial institutions and credit guarantee corporations on the website of the "Regional Revitalization College," which is within the purview of the Secretariat of the Headquarters for Overcoming Population Decline and Vitalizing Local Economy in Japan (the Cabinet Secretariat) prior to the full-scale launching in April 2021. During the trial period from January 22 to March 31, 2021, 122 representatives from 45 regional institutions and credit guarantee corporations took part in creating, improving and utilizing the said webpage under the test environment. As a result, a full-scale launch has been completed with improvements to the site based on feedback from participants in the trial, whereby the FSA has started calling for participation in the know-how sharing website, aiming to increase the number of participants in phases. The first round entry of additional registration is scheduled from April 27 to May 14, 2021.
April 26, 2021	Authorization of the merger of The Mie Bank, Ltd. and The Daisan Bank , Ltd. <Summary> The FSA authorized the merger of The Mie Bank, Ltd. and The Daisan Bank, Ltd., pursuant to the "Banking Act," whereafter the merger was completed on May 1, 2021, as scheduled. The corporate name of the merged bank has become San ju San Bank, Ltd.

 

Securities

April 28, 2021	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 that are operating financial instruments businesses without proper registration. (See the updated list of foreign-based entities )

 

Others

April 30, 2021	Publication of the updated "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers <Summary> The FSA has updated the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers. The updates mainly pertain to technical amendments for the deletion of duplicated contents in the appendix of the Guidelines. The updates took effect on May 1, 2021.
April 30, 2021	Publication of a guideline on the appropriate use of LINE and other similar freeware cross-platform text, video and audio chat applications at work by government agencies, local governments and others <Summary> The Cabinet Secretariat, the Personal Information Protection Commission, the FSA (Financial Services Agency), and the MIC (Ministry of Internal Affairs and Communications) have jointly published a guideline that provides their perspectives on the future appropriate use of services of LINE and other similar freeware cross-platform text, video, and audio chat applications at work in government agencies, local governments, and others, based on a survey of the actual use of LINE services at work by government agencies, local governments, and others.
April 26, 2021	Exchange session between the FSA and the FISC (The Center for Financial Industry Information Systems) <Summary> On April 14, 2021, the FSA held an exchange session with the FISC (The Center for Financial Industry Information Systems), in which the FISC gave a briefing on security standards in the financial sector, whereas the FSA gave a briefing on its initiatives to strengthen the cyber-security of financial institutions, followed by an exchange of opinions.
April 23, 2021	Publication of a research report on financial inclusion of ASEAN <Summary> ASEAN (The Association of Southeast Asian Nations) is one of Japan's important partners in ensuring the steady realization of "Free and Open Indo-Pacific," and cooperation with ASEAN and ASEAN countries in the financial sector is mutually beneficial. The promotion of financial inclusion is one of the key issues in the ASEAN region. Various initiatives are being taken to improve financial access through the use of FinTech and other means, in light of financial digitalization accelerated due to the impact of COVID-19. In this context, the FSA has outsourced a research to the Institute for International Monetary Affairs (IIMA), a public interest incorporated foundation, to understand and analyze ASEAN's initiatives toward financial inclusion, and highlight issues (including regulatory frameworks, practices, and systems) confronting the respective countries in the region. Those findings are utilized to design the FSA's future policies. The research report is now available (only in Japanese) on the FSA's website.