FSA Weekly Review No.476 February 10, 2022

FSA Weekly Review No.476: February 10, 2022

What’s New on the FSA Website

Week of January 28, 2022 - February 3, 2022

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

Press Conferences

January 28, 2022	Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services (January 14, 2022)
January 28, 2022	Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services (January 11, 2022)

Public Comments

January 28, 2022	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 December 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 original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/sonota/20220128.html
January 28, 2022	Publication of the finalized "Order for Enforcement of the Financial Instruments and Exchange Act" and the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business," in regard to the specifics of equity investment-type crowdfunding and private placement to a small number of investors <Summary> The FSA finalized the "Order for Enforcement of the Financial Instruments and Exchange Act" alongside the "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business," in regard to the specifics of equity investment-type crowdfunding and private placement to a small number of investors. The said Order for Enforcement and the Cabinet Office Order mainly provide amendments* to the following: (1) Calculation method of the total amount of issuance (less than JPY 100 million) for equity investment-type crowdfunding (2) Upper limit of investment amount (JPY 500,000) for investors in equity investment-type crowdfunding (3) Method for calculating the number of investors in a private placement to a small number of investors. * The amendments were made in response to the recommendation stated in the second report by the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council published in June 2021 to review the specifics of equity investment-type crowdfunding and private placement to a small number of investors. The said Order for Enforcement and the Cabinet Office Order were enforced on January 29, 2022, in tandem with the updated Comprehensive Guidelines for Supervision, etc., which took effect on the same date. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20220128.html

January 28, 2022

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 December 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 original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/sonota/20220128.html open new window

January 28, 2022

Publication of the finalized "Order for Enforcement of the Financial Instruments and Exchange Act" and the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business," in regard to the specifics of equity investment-type crowdfunding and private placement to a small number of investors
<Summary>
The FSA finalized the "Order for Enforcement of the Financial Instruments and Exchange Act" alongside the "Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business," in regard to the specifics of equity investment-type crowdfunding and private placement to a small number of investors.
The said Order for Enforcement and the Cabinet Office Order mainly provide amendments* to the following:

(1) Calculation method of the total amount of issuance (less than JPY 100 million) for equity investment-type crowdfunding

(2) Upper limit of investment amount (JPY 500,000) for investors in equity investment-type crowdfunding

(3) Method for calculating the number of investors in a private placement to a small number of investors.

* The amendments were made in response to the recommendation stated in the second report by the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council published in June 2021 to review the specifics of equity investment-type crowdfunding and private placement to a small number of investors.

The said Order for Enforcement and the Cabinet Office Order were enforced on January 29, 2022, in tandem with the updated Comprehensive Guidelines for Supervision, etc., which took effect on the same date.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/shouken/20220128.html open new window

Press Releases

Councils

January 28, 2022	Publication of the agenda and handouts of the 10th meeting of the "Expert Panel on Sustainable Finance" <Summary> The FSA published the agenda and handouts of the 10th meeting of the "Expert Panel on Sustainable Finance," which was held online on January 28, 2022. The Expert Panel* members at the 10th meeting discussed the launch of a special sectional committee on the information platform to be established by JPX (Japan Exchange Group) to aggregate a wide range of information on green bonds, etc., as well as ESG (Environmental Social and Governance) ratings and data products providers. *The Expert Panel is composed of business, financial, and academic experts with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/singi/sustainable_finance/siryou/20220128.html

January 28, 2022

Publication of the agenda and handouts of the 10th meeting of the "Expert Panel on Sustainable Finance"
<Summary>
The FSA published the agenda and handouts of the 10th meeting of the "Expert Panel on Sustainable Finance," which was held online on January 28, 2022. The Expert Panel* members at the 10th meeting discussed the launch of a special sectional committee on the information platform to be established by JPX (Japan Exchange Group) to aggregate a wide range of information on green bonds, etc., as well as ESG (Environmental Social and Governance) ratings and data products providers.

*The Expert Panel is composed of business, financial, and academic experts with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/singi/sustainable_finance/siryou/20220128.html

Banks

January 31, 2022	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 December 31, 2021. * The majority of the data reflects the data until December 31, 2021, whereas the data of cooperative financial institutions reflects the data until 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
January 31, 2022	Publication of statistics regarding unlawful reimbursement of deposits (as of the end of September 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/20220131.html

January 31, 2022

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 December 31, 2021.
* The majority of the data reflects the data until December 31, 2021, whereas the data of cooperative financial institutions reflects the data until 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 open new window

January 31, 2022

Publication of statistics regarding unlawful reimbursement of deposits (as of the end of September 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/20220131.html open new window

Securities

January 28, 2022	Administrative action against Shinsei Investment Management Co.,Ltd. <Summary> The FSA took an administrative action against Shinsei Investment Management Co.,Ltd., a business operator that mainly engages in investment management business, ordering the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act (FIEA)." This administrative action was taken in response to the recommendation dated January 21, 2022 from the Securities and Exchange Surveillance Commission for an administrative action against the said entity, which was found to have been in violation of the FIEA, based on an inspection. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/news/r3/shouken/20220128-2.html
January 28, 2022	Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau) <Summary> The FSA and the Kanto Local Finance Bureau issued a warning to an entity that is operating financial instruments businesses without proper registration. (See the updated list of foreign-based entities). (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/ordinary/chuui/mutouroku.html

January 28, 2022

Administrative action against Shinsei Investment Management Co.,Ltd.
<Summary>
The FSA took an administrative action against Shinsei Investment Management Co.,Ltd., a business operator that mainly engages in investment management business, ordering the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act (FIEA)."
This administrative action was taken in response to the recommendation dated January 21, 2022 from the Securities and Exchange Surveillance Commission for an administrative action against the said entity, which was found to have been in violation of the FIEA, based on an inspection.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/news/r3/shouken/20220128-2.html open new window

January 28, 2022

Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau)
<Summary>
The FSA and the Kanto Local Finance Bureau issued a warning to an entity that is operating financial instruments businesses without proper registration. (See the updated list of

foreign-based entities open new window

).

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/ordinary/chuui/mutouroku.html open new window

Insurance

February 1, 2022	Publication of the outline of proceedings and handouts of the third meeting of the "Council of Experts on Determination of Fire Insurance Premium Rates Based on Exposure to Water Damage Risks (Including Climate Hazard Risks)" (provisional English title) <Summary> The FSA published the outline of proceedings and handouts of the third meeting of the "Council of Experts on Determination of Fire Insurance Premium Rates Based on Exposure to Water Damage Risks (Including Climate Hazard Risks)" (provisional English title), which was held on December 6, 2021. The council members gave presentations on issues related to fire insurance premium rates based on exposure to water damage risks from the consumer's perspective, as well as the results of an awareness survey on water (flood) damage insurance, followed by questions and an exchange of opinions. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/singi/suisai/gijiyousi/20211206.html
February 1, 2022	Submission of a bill to partially amend the "Insurance Business Act" to the 208th ordinary Diet session <Summary> The FSA submitted to the 208th ordinary Diet session a bill to partially amend the "Insurance Business Act." The bill is aimed at extending for five years the period of government-subsidized measures taken for the Life Insurance Policyholders Protection Corporation, which expires at the end of March 2022, in order to continue to appropriately protect policyholders in light of changes in socioeconomic circumstances that may affect the insurance sector. (The original press release is available in Japanese at the following URL.) https://www.fsa.go.jp/common/diet/index.html#diet208

February 1, 2022

Publication of the outline of proceedings and handouts of the third meeting of the "Council of Experts on Determination of Fire Insurance Premium Rates Based on Exposure to Water Damage Risks (Including Climate Hazard Risks)" (provisional English title)
<Summary>
The FSA published the outline of proceedings and handouts of the third meeting of the "Council of Experts on Determination of Fire Insurance Premium Rates Based on Exposure to Water Damage Risks (Including Climate Hazard Risks)" (provisional English title), which was held on December 6, 2021.
The council members gave presentations on issues related to fire insurance premium rates based on exposure to water damage risks from the consumer's perspective, as well as the results of an awareness survey on water (flood) damage insurance, followed by questions and an exchange of opinions.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/singi/suisai/gijiyousi/20211206.html open new window

February 1, 2022

Submission of a bill to partially amend the "Insurance Business Act" to the 208th ordinary Diet session
<Summary>
The FSA submitted to the 208th ordinary Diet session a bill to partially amend the "Insurance Business Act." The bill is aimed at extending for five years the period of government-subsidized measures taken for the Life Insurance Policyholders Protection Corporation, which expires at the end of March 2022, in order to continue to appropriately protect policyholders in light of changes in socioeconomic circumstances that may affect the insurance sector.

(The original press release is available in Japanese at the following URL.)
https://www.fsa.go.jp/common/diet/index.html#diet208 open new window

Others

February 2, 2022	Updated list of issuers of gift certificates in repayment procedures based on the ’Payment Services Act’
January 31, 2022	FSA updated Information on COVID-19 (Novel Coronavirus)
January 31, 2022	Updated statistics of money lending business
January 28, 2022	“JFSA’s Strategic Priorities in 2022” Speech by NAKAJIMA Junichi, Commissioner, Japan’s Financial Services Agency (JFSA)

Site Map

About FSA Page list Open: Ministerial Team; Organization; Location; Pamphlet; Open Policy Lab
Press Releases & Public Relations Page list Open: Press Releases; Press Conferences; Official Statements; FSA Weekly Review & ACCESS FSA; Speeches; For Financial Users; Others; Archives
Policies & Councils Page list Open: Policies; Councils
Laws & Regulations Page list Open: Name of Laws and Regulations(PDF); Recent Changes (Legislation, Ordinances, Guidelines); Guidelines; Financial Instruments and Exchange Act; Financial Monitoring Policy; Public Comment; No-Action Letter System; Procedures concerning Foreign Account Management Institutions
Regulated Institutions Page list Open: List of Institutions; Administrative Action; Statistics; For those engaging in High Speed Trading; To Operators of Specially Permitted Businesses for Qualified Institutional Investors, etc.; Asia Region Funds Passport (ARFP)
FSA Weekly Review & ACCESS FSA Page list Open: Back Number (2022); Back Number (2021); Back Number (2020)