What’s New on the FSA Website

Week of August 20, 2021 - August 26, 2021

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

Public Comments

August 20, 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 provide technical amendments to the said Guidelines, so that the FSA, the Local Finance Bureaus, and the Local Finance Branch Bureaus can jointly conduct interviews with regional banks, etc. from the stage of prior consultation on inquiries from regional banks, etc., such as: -  authorization- and/or approval-related matters -  applicability as to whether or not an intending business falls under the category of "other incidental business," and -  general inquiries on regulatory applicability. The amendments took effect on August 20, 2021. (This public comment is available in Japanese) https://www.fsa.go.jp/news/r3/ginkou/20210820/20210820.html

Press Releases

Banks

August 24, 2021	Overview of modifications to lending conditions by financial institutions <Summary> The FSA published an overview of modifications to lending conditions made by cooperative financial institutions for the period from March 10, 2020, to June 30, 2021. (This press release is available in Japanese) https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.html

 

Insurance

August 26, 2021

Updated one-stop access* to relevant information on prudential policies, including an economic value-based solvency regulatory framework (mainly for insurance companies) <Summary> The FSA has updated the one-stop access* to the relevant information on prudential policies, including an economic value-based solvency regulatory framework (mainly for insurance companies). The FSA has been conducting field tests of economic value-based valuation and monitoring methodologies for all insurance companies, based on discussions within the "Advisory Council on the Economic Value-based Solvency Framework." The updates to the one-stop access pertain to the updated specifications and templates for those field tests scheduled in FY2021.   * The one-stop access mainly shares information pertaining to the FSA's "Advisory Council on Economic Value-Based Framework,"** field test results in respect of economic value-based assessment and monitoring methodologies, and survey reports (outsourced to external parties). ** The Advisory Council was established to seek directions for the future introduction of an economic value-based solvency framework for insurance companies in Japan, while also taking into account global developments on the matter. The Advisory Council consists of academics and practitioners with relevant expertise and perspectives.  (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/hoken/20210826.html

 

Others

August 24, 2021	2021 campaign for multiple-debt problem consultation and the updated one-stop access to the campaign information <Summary> Consultation counters at the respective local governments have furthered development based on the "Program to Remedy the Multiple-Debt Problem" which was decided in April 2007 by the Headquarters for the multiple-debt problems in the Cabinet Office. Meanwhile, the FSA has been cooperating with Local Finance Bureaus, local governments, and related organizations to run an annual campaign for multiple-debt problem consultation based on the said Program. The annual campaign is mainly aimed at enhancing the public awareness of the consultation counters and encouraging potential multiple debtors to seek advice from professionals at the consultation counters. The 2021 annual campaign has been scheduled from September 1 through December 31, 2021, wherein free of charge consultation services are provided nationwide and publicity activities are held to encourage the potential multiple debtors to come to the consultation counters. In this regard, the FSA updated its subpage which provides one-stop access to the information of 2021 annual campaign for multiple-debt problem consultation. Among various approaches and efforts taken by the FSA and relevant parties during the campaign, the subpage particularly highlights the schedule-information on temporary consultation sessions held (and to be held) during the campaign by professionals respectively from bar associations, shiho-shoshi lawyer’s associations, local finance bureaus, and prefectures, as well as information on permanent points of contact for consultations. (These press releases are available in Japanese) https://www.fsa.go.jp/policy/kashikin/campaign/campaign2021.html https://www.fsa.go.jp/policy/kashikin/soudankai2021.html
August 24, 2021	The FSA's new Instagram account to warn against illegal practices, including usury in peer-to-peer (P2P) lending through social networking services (SNS) <Summary> The FSA created an account (＠fsa_p2pl) on Instagram to warn against illegal practices, including usury in peer-to-peer (P2P) lending through social networking services (SNS). P2P lending is a practice of direct lending between (non-regulated) individual lenders and borrowers on a non-recurring or sporadic basis (without involving financial institutions, such as banks as intermediaries). In P2P lending, when a lender conducts loan solicitation with an intention of lending money to many and unspecified persons on a repetitive and continuous basis, such practice may be deemed solicitation to conclude contracts related to loans for the purpose of engaging in the money lending business without appropriate registration, constituting a conflict with the "Money Lending Business Act." Moreover, it has been indicated that online P2P lending is susceptible to misuse by loan sharks (money lenders) impersonating individual lenders for the purpose of deceiving borrowers by offering loans with illegally high interest rates. Online P2P Lending also involves the risk of cybercrime, wherein borrowers' personal information is exposed to misuse and fraud, whereby borrowers can fall victim to further crime and trouble. With the new account on Instagram, the FSA further aims to urge borrowers not to take loans from illegal lenders in P2P lending through SNS. (This press release is available in Japanese) https://www.fsa.go.jp/news/r3/kinyu/20210824/20210824.html
August 23, 2021	The main issues raised by the FSA at opinion exchange meetings with trade associations