What’s New on the FSA Website

Week of August 27, 2021 - September 2, 2021

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

Public Comments

September 2, 2021	Publication of the draft "Order to Amend the Order for Enforcement of the Postal Service Privatization Act" and the draft "Order to Amend the Order on Limitation, etc. on Business During the Transition Period Pertaining to Japan Post Bank and Japan Post Insurance Company" <Summary> The FSA proposed the draft "Order to Amend the Order for Enforcement of the Postal Service Privatization Act" and the draft "Order to Amend the Order on Limitation, etc. on Business During the Transition Period Pertaining to Japan Post Bank and Japan Post Insurance Company." Under the "Postal Service Privatization Act," a postal insurance corporation must notify the Prime Minister and the Minister of Internal Affairs and Communications in cases where the postal insurance corporation intends to underwrite certain types of insurance, manage assets, or engage in other business on or after the date on which JAPAN POST HOLDINGS Co., Ltd. has notified the Minister of Internal Affairs and Communications that it has disposed of one-half or more of its shares in the postal insurance corporation. In this respect, the proposal mainly intends to update the scope of insurance that can be underwritten, as well as the specific matters of which notification must be provided to the authorities by postal insurance corporations. This public comment is available in Japanese https://www.fsa.go.jp/news/r3/hoken/20210902.html
September 1, 2021	Publication of the draft regulatory notice designating certain rules based on the provision of Article 21-5, Paragraph (1) of the "Cabinet Office Order on Funds Transfer Service Providers" <Summary> The FSA proposed the draft regulatory notice designating certain rules based on the provision of Article 21-5, Paragraph (1) of the "Cabinet Office Order on Funds Transfer Service Providers" (Cabinet Office Order No.4 of 2010). The proposal mainly pertains to the partial enforcement (as of May 1, 2021) of the "Act Partially Amending the Act on Sales, etc. of Financial Instruments, etc. for the Improvement of Convenience for and Protection of Financial Services Users" (provisional English law title) (Act No.50 of 2020) in respect of the "Payment Services Act." This public comment is available in Japanese www.fsa.go.jp/news/r3/sonota/20210901.html
September 1, 2021	Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" <Summary> The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators." The amendments mainly set forth the supervisory focal points in the respective Guidelines in cases where banks and Type 1 financial instruments business operators are expected to temporarily conduct business operations from overseas in the event that it has become difficult to continue business in Japan due to wide-area disasters, or other similar crises. The amendments took effect on September 1, 2021. This public comment is available in Japanese www.fsa.go.jp/news/r3/ginkou/20210901-2/20210901-2.html
August 27, 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 June 30, 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. This public comment is available in Japanese https://www.fsa.go.jp/news/r3/sonota/20210827.html
August 27, 2021	Publication of the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." <Summary> The FSA proposed the draft amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." pertaining to the enforcement of the "Act Partially Amending the Banking Act, etc., Aimed at Revitalizing the Japanese Economy and Fostering the Enhancement of Regional Banks' Sustainability of Business Models." The proposal mainly intends to update the scope of banking business operations and the service contents to be rendered by the International Financial Center, by providing corresponding amendments/updates to the Comprehensive Guidelines, and other relevant and applicable Cabinet Orders, Cabinet Office Orders, regulatory notices in conjunction with the enforcement of the said Act, which was promulgated on May 26, 2021. This public comment is available in Japanese https://www.fsa.go.jp/news/r3/ginkou/20210827.html
August 27, 2021	Publication of the finalized 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 finalized the amendments to the "Comprehensive Guidelines for Supervision of Insurance Companies." The amendments 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. The amendments took effect on August 27, 2021.   * 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. This public comment is available in Japanese https://www.fsa.go.jp/news/r3/hoken/20210827.html

Press Releases

Policies

August 31, 2021	Publication of the request for budget, organization and staff for FY 2022 <Summary> The FSA published an overview of the request for budget, organization and staff for FY 2022. This press release is available in Japanese https://www.fsa.go.jp/common/budget/yosan/4youkyuu.html
August 31, 2021	Publication of the expenditure budget request for FY 2022 <Summary> The FSA published the expenditure budget request for FY 2022. This press release is available in Japanese https://www.fsa.go.jp/common/budget/yosan/4youkyuu-2.html
August 31, 2021	Publication of the FSA's FY 2022 request for tax revisions <Summary> The FSA published the FY 2022 request for tax revisions. This press release is available in Japanese https://www.fsa.go.jp/news/r3/sonota/20210831.html

Councils

September 1, 2021

Publication of the agenda and handouts of the first meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council <Summary> The FSA published the agenda and handouts of the first meeting of the "Working Group on Corporate Disclosure" (FY 2021) of the Financial System Council, which was held on September 2, 2021. This press release is available in Japanese https://www.fsa.go.jp/singi/singi_kinyu/disclose_wg/siryou/20210902.html

August 27, 2021

The first meeting of the Working Group on Corporate Disclosure of the Financial System Council

 

Banks

September 1, 2021	Call for participants from financial institutions in a business-support know-how-sharing website (the second-round entry of additional registration) and necessary procedures for the registered participants to add, change, or deregister their membership, or to change other relevant information <Summary> The FSA has started calling for participation in the business-support know-how sharing website (the second-round entry of additional registration) 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). The second-round entry of additional registration is scheduled from September 1 to 15, 2021. This business-support know-how sharing website has been fully launched in April 2021, following the trial period from January 22 to March 31, 2021. So far, 331 representatives from 131 regional institutions and credit guarantee corporations have registered with the website, including those who took part in creating, improving, and utilizing the website under the trial phase. The FSA intends to increase the number of participants, step by step. In addition, necessary procedures for the registered participants to add, change, or deregister their membership, or to change other relevant information are noted on the webpage. This press release is available in Japanese https://www.fsa.go.jp/news/r3/ginkou/20210901/20210901.html
August 31, 2021	KPIs (key performance indicators) to reflect the efficiency of financial intermediation by financial institutions (including major banks and regional banks) <Summary> From the perspective of ensuring "visualization" of the efficiency of financial intermediation by financial institutions (including major banks and regional banks), the FSA published the list of KPIs (key performance indicators)* for financial institutions which reflect their respective performances in terms of the efficiency of financial intermediation. The list also contains website addresses of the respective financial institutions publicizing their initiatives taken for financial intermediation.   * On September 9, 2019, the FSA set forth the KPIs (key performance indicators) to objectively reflect the efficiency of financial intermediation. Ever since then, the FSA has required financial institutions to publish their respective KPI results on their websites in the hope that they fully commit to providing managerial support (inclusive of lending) to small and medium-sized enterprises for the improvement of their business feasibility and productivity, without overly relying on collateral and personal guarantees. This press release is available in Japanese https://www.fsa.go.jp/news/r3/ginkou/20210831/20210831.html
August 31, 2021	Publication of the results of the questionnaire survey on financial institutions’ intermediary services offered to their corporate clients <Summary> The FSA published the results of the questionnaire survey on financial institutions' intermediary services offered to their corporate clients. Small- and medium-sized enterprises were subject to the questionnaire survey and response. This press release is available in Japanese https://www.fsa.go.jp/common/about/research/20210831/20210831.html
August 30, 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 July 31, 2021. * The majority of the data reflects the data until July 31, 2021, whereas the data of cooperative financial institutions reflects the data until June 30, 2021. This press release is available in Japanese https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.html

 

Securities

August 31, 2021

Publication of the updated regulatory notice concerning the designation of related corporations of credit rating agencies (group-based designation concerning explanatory items of unregistered credit ratings) <Summary> The FSA published the updated regulatory notice concerning the designation of related corporations of credit rating agencies (group-based designation concerning explanatory items of unregistered credit ratings), whereby the FSA  updated the list of designated credit rating agencies (unregistered credit rating agencies which belong to the same group of registered credit rating agencies and fulfill the requirements). The duty of securities companies to explain certain matters to their customers is partially alleviated when securities companies use credit ratings provided by the credit rating agencies that are on the said list. The updated list took effect on August 31, 2021. This press release is available in Japanese https://www.fsa.go.jp/news/r3/shouken/20210831_groupshitei.html

 

Insurance

September 1, 2021	License granted to The Britannia Steam Ship Insurance Association Europe to conduct foreign non-life insurance business <Summary> The FSA granted a license to The Britannia Steam Ship Insurance Association Europe to conduct foreign non-life insurance business pursuant to the "Insurance Business Act." This press release is available in Japanese https://www.fsa.go.jp/news/r3/hoken/20210901.html

 

Others

September 1, 2021	Approval of the plan for new business activities for Meiwa-machi Chamber of Commerce and Industry* <Summary> The FSA announced that the Prime Minister and the Minister of Economy, Trade and Industry approved and published the plan for new business activities for Meiwa-machi Chamber of Commerce and Industry* based on the "Act on Strengthening Industrial Competitiveness."   *As this entity has no English entity name, the Romanized version of the Japanese entity name is stated here. This press release is available in Japanese https://www.fsa.go.jp/news/r3/sonota/20210901-2/20210901-2.html
August 31, 2021	Stewardship Code : 316 institutional investors have signed up to the Principles for Responsible Institutional Investors as of July 31, 2021
August 31, 2021	Updated statistics of money lending business
August 31, 2021	”Report by the Expert Panel on Sustainable Finance” Announced (Updated)
August 30, 2021	The FSA's initiatives toward the reduction of food loss as well as food donation through the effective use of a portion of the government's emergency food reserves <Summary> From the perspective of reducing food loss and supporting the people in need, the FSA has decided to engage in food donation to food bank (hunger-relief) organizations and other outreach groups, by making effective use of a portion of food reserves (mainly non-perishable foods such as canned goods) that are originally kept for disaster-relief/emergency by the government. This press release is available in Japanese https://www.fsa.go.jp/choutatu/choutatu_j/choutatsu_saigaisyokuhin.html
August 30, 2021	FSA updated Information on COVID-19 (Novel Coronavirus)