What’s New on the FSA Website

Week of June 4, 2021 - June 10, 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)

June 9, 2021	Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" (pertaining to calculation of "time-lag margins" that may occur in connection with interest fluctuations and others) <Summary> The FSA published the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies." The proposal mainly intends to expressly set forth in the Guidelines the points to be taken into account in screening (examining) insurance products in cases where fees thereto are specified using MVA (Market Value Adjustment)* to cover against losses (time-lag margins) that may occur in connection with the following: interest rate fluctuations that occur between the time when the basis for calculating the surrender value is set and the time of surrender; transaction costs related to the sale of assets under management; and other events.   * MVA (Market Value Adjustment) is a calculation in which the surrender value is the sum of the insurance premiums reserve plus an adjustment based on changes in market values of assets under management caused by differences in interest rates between the time of contract and the time of surrender. MVA is widely adopted in calculating fees for foreign currency-denominated insurance policies.
June 9, 2021	Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies" (pertaining to brokerage services in terms of operating lease transactions) <Summary> The FSA published the draft amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies." The proposal mainly intends to expressly set forth in the Guidelines that insurance companies may conduct brokerage services in terms of operating lease transactions as "Other Incidental Business Operations."
June 7, 2021	Publication of the finalized amendments to the FSA's regulatory notice concerning the "designated IFRSs" <Summary> The FSA finalized the amendments to the regulatory notice concerning the "designated IFRSs" stipulated in the "Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements." The amendments mainly 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. The amendments took effect on June 7, 2021.

 

Press Releases

(The following press releases are available in English)

International

June 4, 2021	Financial Services Agency’s Efforts to Promote Innovation

Banks

June 4, 2021	Overview of major banks’ financial results as of March 31, 2021
June 4, 2021	Overview of the Japanese regional  banks’ financial results for the fiscal year ended March 31, 2021

Insurance

June 8, 2021	The 14th NAIC-FSA Insurance Dialogue

Others

June 10, 2021	Exchange of Letters on cooperation in the area of audit oversight with the Federal Audit Oversight Authority (FAOA) of Switzerland
June 7, 2021	Meeting of the Financial Monitoring Council
June 4, 2021	Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’

(The following press releases are available in Japanese)
 

Securities

June 10, 2021

Publication of the "Bank of Japan Review" regarding the development and utilization of OTC derivatives transaction data <Summary> The FSA shared on its website the "Bank of Japan (BOJ) Review" regarding the development and utilization of OTC derivatives transaction data,* which summarizes the collaborative efforts related thereto by the FSA and the BOJ. In particular, the review pertains to the following: -   the financial crisis of the late 2000s and international discussions to improve market transparency -   the development of the OTC derivatives transaction reporting system and the commencement of data provision from the FSA to the BOJ -   characteristics of transaction data and findings from the analysis (e.g., changes in market structures under stress, and others), and -   efforts to improve the sophistication of analysis.   * This review is currently available only in Japanese.

June 8, 2021

Administrative action against SBI Social Lending Co., Ltd. (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took an administrative action against SBI Social Lending Co., Ltd., a Type II financial instruments business operator, ordering the suspension of the entity's entire business operations* from June 8 to July 7, 2021, and thereby ordering the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act." This administrative action is based on the findings from the reports** that the entity filed in response to the Bureau's order for the collection of a report pertaining to the conduct of its business which was deemed significantly problematic.   * Excluding services for the completion of customer's transactions. ** Including an investigation report of the third-party committee consisting of outside experts, which was established by the said company.

Others

June 7, 2021

Publication of the results of the policy evaluation for FY 2019 <Summary> Pursuant to the "Government Policy Evaluations Act," all Ministries and Agencies are required to conduct annual policy reviews and reflect the results to improve their policies in order to realize an efficient, high-quality, and results-oriented government administration. The FSA published the results of the policy evaluation for FY 2019.

June 4, 2021

Publication of the agenda and handouts of the first meeting of the "Working Group on Integration of Taxation on Financial Income and Gains" (provisional English title) <Summary> The FSA published the agenda and handouts of the first meeting of the "Working Group on Integration of Taxation on Financial Income and Gains" (provisional English title) which was held on May 10, 2021.