What’s New on the FSA Website

Week of November 19, 2021 - November 25, 2021

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

Public Comments

November 19, 2021

Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc. and the Cabinet Office Order on Transactions under Article 161-2 of the Financial Instruments and Exchange Act and Deposits Related Thereto" <Summary> The FSA has finalized the "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc. and the Cabinet Office Order on Transactions under Article 161-2 of the Financial Instruments and Exchange Act and Deposits Related Thereto." The Cabinet Office Orders mainly enhance the accountability of financial services providers to publicize and explain to financial services users the risks pertaining to leveraged ETFs and others, such as a possible large discrepancy between the volatility of the underlying (base) index and the leveraged index over the medium to long term. The Cabinet Office Orders also increase guarantee rates on margin deposits. The first Cabinet Office Order will be enforced on January 24, 2022, whereas the latter Cabinet Office Order will be enforced on January 10, 2023. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20211119.html

November 19, 2021

Publication of the finalized amendments to the "Audit Quality Control Review Standards" <Summary> The FSA announced that the Audit Committee of the Business Accounting Council (BAC) has finalized the amendments to the "Audit Quality Control Review Standards" compiled by the BAC plenary held on November 16, 2021. The amendments mainly update the conventional audit quality control system in which predefined audit quality control policies and procedures are formulated and managed, to a new audit quality control system in which audit quality control risks are more proactively identified and addressed, whereby the cycle to improve the audit quality control system is effectively deployed within an audit firm.  (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/sonota/20211116.html

Press Releases

Councils

November 24, 2021	The fourth meeting of the Working Group on Corporate Disclosure of the Financial System Council
November 22, 2021	Appointment of the Financial System Council’s committee members <Summary> The FSA announced that the Financial System Council’s committee members were appointed by the Prime Minister. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/singi/2021122-2.html

 

Banks

November 24, 2021

Requests for the facilitation of financing for small- and medium-sized enterprises during the calendar- or fiscal-year-end season and further beyond <Summary> Against the backdrop of the heightened economic uncertainty due to the impact of COVID-19, businesses are still facing difficult cash flow conditions with tight borrowing constraints, especially given the increasing demand for operating funds and other resources toward the calendar- or fiscal-year-end season. In response to such circumstances, the FSA has held meetings with government officials and representatives from various financial institutions to exchange views on facilitating financing to small- and medium-sized enterprises and others. In this regard, following the "Economic Measures to Overcome New Coronavirus Infections and to Carve out a New Era" finalized by the Japanese Government on November 19, 2021, the FSA has requested that the relevant financial associations and institutions facilitate and ensure appropriate and proactive financing for small- and medium-sized enterprises during the calendar- or fiscal-year-end season and further beyond.   (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/ginkou/20211124.html https://www.fsa.go.jp/news/r3/20211124/20211124.html

November 22, 2021

Overview of modifications to lending conditions by cooperative 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 September 30, 2021. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/ordinary/coronavirus202001/kashitsuke/20200430.html

 

Insurance

November 22, 2021	Business Reports on a Special Provision for Deductibility in Performance-based Compensation

 

Others

November 22, 2021	Updated : The Financial Market Entry Office
November 22, 2021	To Operators of Specially Permitted Businesses for Foreign Investors, etc./during Transition Period