What’s New on the FSA Website

Week of November 5, 2021 - November 11, 2021

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

Public Comments

November 10, 2021	Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." <Summary> The FSA finalized the 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 amendments 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. The amendments will take effect on November 22, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211110-2.html
November 10, 2021	Publication of the finalized Cabinet Orders, Cabinet Office Orders, and others 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" <Summary> The FSA finalized the Cabinet Orders, Cabinet Office Orders, and others 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 said Cabinet Orders, Cabinet Office Orders, and others mainly 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 relevant and applicable Cabinet Orders, Cabinet Office Orders, regulatory notices, and comprehensive guidelines in conjunction with the enforcement of the said Act, which was promulgated on May 26, 2021. The said Cabinet Orders, Cabinet Office Orders, and others in tandem with the applicable Comprehensive Guidelines will be enforced or will take effect on November 22, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211110/20211110.html
November 9, 2021	Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" and the "Comprehensive Guidelines for Supervision of Financial Services Intermediaries" <Summary> The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators" and the "Comprehensive Guidelines for Supervision of Financial Services Intermediaries." In regard to matters to be taken into account in soliciting investments in investment trusts and in explaining important matters regarding the rollover of investment trusts, the amendments expressly set forth provisions in the Guidelines on a principle basis to ensure that explanations are provided in a manner that truly meets the investment objectives and level of understanding of the respective financial services users. The amendments took effect on November 9, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20211109/20211109.html
November 5, 2021	Publication of the finalized regulatory notice designating certain rules based on Article 2, Paragraph (1) and (2) of the Cabinet Office Order on Restrictions on Over-the-Counter Derivatives Transactions" in response to the cessation of LIBOR (London Interbank Offered Rate) <Summary> The FSA published the finalized regulatory notice designating certain rules based on Article 2, Paragraph (1) and (2) of the "Cabinet Office Order on Restrictions on Over-the-Counter-Derivatives Transactions" in response to the cessation of LIBOR (London Interbank Offered Rate). The regulatory notice mainly develops rules in the relevant and applicable regulatory notice in response to the cessation of LIBOR. Particularly in regard to OTC transactions and others conducted by financial instruments business operators and others, the regulatory notice develops rules for the obligation of centralization of clearing as well as rules for transactions subject to electronic trading platform regulations. The regulatory notice will take effect on December 6, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20211105/20211105.html

Press Releases

Councils

November 11, 2021

Publication of the agenda and handouts of the second meeting of the "Working Group on Payment Services" (provisional English title) of the Financial System Council <Summary> The FSA published the agenda and handouts of the second meeting of the "Working Group on Payment Services" (provisional English title) of the Financial System Council, which was held on November 11, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/singi/singi_kinyu/shikinkessai_wg/shiryou/shikinkessai_wg2.html

 

Securities

November ８, 2021

The first trial of two administrative penalty cases against an individual (the same person in two cases) who committed a series of wash sales (fake purchases and sales) of stocks of SANSHIN CORPORATION, thereby committing insider trading as a contract negotiator with the tender offeror in regard to the stocks of the said entity <Summary> On November 15, 2021, the first trial of two administrative penalty cases against an individual (the same person in two cases) who committed a series of wash sales* (fake purchases and sales) of stocks of SANSHIN CORPORATION,** thereby committing insider trading as a contract negotiator with a tender offeror in regard to the stocks of the said entity, was conducted. * A wash sale falls under unfair practices, referring to a transaction not aimed at the transfer of rights, in which the same person is typically a party to both the sale and purchase of the same transaction. ** SANSHIN CORPORTION was delisted in September 2018. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20211108.html

 

Others

November 11, 2021	Stewardship Code : 320 institutional investors have signed up to the Principles for Responsible Institutional Investors as of October 31, 2021
November 10, 2021	FSA updated Information on COVID-19 (Novel Coronavirus)
November 10, 2021	Request for financial measures to deal with the outbreak of highly pathogenic avian flu (HPAI) in Akita Prefecture (The Tohoku Local Finance Bureau) <Summary> The Tohoku Local Finance Bureau issued the statement "Financial Measures in Response to the Report of the Subspecies of Highly Pathogenic Avian Influenza (HPAI)" to relevant financial institutions in Akita Prefecture. The statement requests financial institutions to cooperate with prefectural authorities and appropriately deal with HPAI-affected parties (poultry farms, processors, and trade) considering their circumstances, such as by attentively responding to the needs of business management consultation and new loans or change of loan terms. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211110-3.html
November 10, 2021	Publication of the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" (as of the end of September 2021), and the publication of an analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions on the said list as of the end of March 2021 <Summary> The FSA updated the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" as of the end of September 2021, in order to visualize financial institutions' initiatives and efforts. The FSA aims at encouraging financial institutions to further visualize their customer-oriented business conduct by requesting them to meet the fill-in requirements of the format to report their initiatives and efforts based on the said Principles. The FSA also published a trend analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions on the said list as of the end of March 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/kokyakuhoni/202111/fd_2021.html
November 10, 2021	Completion of support for the first project of "Enterprise System and Frontrunner Support-Hub" <Summary> The FSA has announced the completion of support for the first project of "Enterprise System and Frontrunner Support-Hub" established in March 2020, thereby publishing the overall summary report of the first project including underlying key issues related to IT governance and risk management in monitoring, which have been clarified through the provision of support from the Support-Hub.* The Support-Hub has provided support for financial institutions' innovative approaches/initiatives for enterprise systems, particularly in system monitoring of IT governance and IT-related risk management, in addition to functions such as legal interpretation (regulatory applicability). * The Support-Hub has been upgraded with enhanced functions to "Financial Institutions' Computer Systems and Front-Runners' Support-Desk" (provisional English title). (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/sonota/20211110.html
November 9, 2021	Warnings about entities that are operating money lending businesses without proper registration <Summary> The FSA (Local Finance Bureaus) updated warnings about entities that are operating money lending businesses without proper registration. The warnings include the updated list of entities that misrepresent their registration using fictitious or stolen registration numbers. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/ordinary/chuui/index.html
November 5, 2021	Publication of statistics regarding unlawful reimbursement of deposits (as of the end of March 2021) <Summary> The FSA published statistics regarding unlawful reimbursement of deposits caused by counterfeit and stolen cash cards, stolen deposit books, and unlawful Internet banking activities. The statistics include details of incidents and compensation made by financial institutions based on reports from the financial institutions. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211105-2/20211105-2.html
November 5, 2021	Results of the survey on financial institutions' efforts/initiatives taken to ensure accessibility for their customers with disabilities <Summary> The FSA published the results of the survey on financial institutions' efforts/initiatives taken to ensure accessibility for their customers with disabilities (as of March 31, 2021). (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211105/20211105.html