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FSA Weekly Review No.502 - August 25, 2022
What’s New on the FSA Website
Week of August 5, 2022 - August 18, 2022
This page contains the latest in events, developments, and updates to the FSA website.
Public Comments
| August 9, 2022 | Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions," "Comprehensive Guidelines for Supervision of Cooperative Financial Institutions" (provisional English title), "Comprehensive Guidelines for Supervision of Fisheries Cooperatives Engaging in Credit Business" (provisional English title), and other comprehensive guidelines after public consultation <Summary> The FSA finalized the amendments to the following Comprehensive Guidelines after public consultation: (a) Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions (b) Comprehensive Guidelines for Supervision of Major Banks, etc. (c) Comprehensive Guidelines for Supervision of Cooperative Financial Institutions (provisional English title) (d) Comprehensive Guidelines for Supervision of Fisheries Cooperatives Engaging in Credit Business (provisional English title), and (e) Comprehensive Guidelines for Supervision of Trust Companies, etc. (provisional English title). In particular, the finalized amendments provide amendments to the aforementioned comprehensive guidelines as follows: (1) Following the revision of the key performance indicators (KPIs) to evaluate capital-participating-banks' efforts to support corporate borrowers' core businesses, in response to the amendments to the "Cabinet Office Order on Special Measures for Strengthening Financial Functions," the finalized amendments set out in the guidelines* that the revised indicators are also deemed as supervisory measures for ensuring the implementation of the corporate borrowers' business strengthening plans [*the amendments are reflected in the aforementioned comprehensive guidelines (a), (c), and (d)] (2) In response to the amendments to the "Cabinet Office Order on Financial Instruments Business," the finalized amendments provide amendments to the guidelines* in regard to the firewall regulations on sharing corporate clients' non-public information held by a listed company, etc. [*the amendments are reflected in the comprehensive guidelines (c) and (d)] (3) Based on inquiries and requests from financial institutions and the Local Finance Bureaus, the finalized amendments set forth the following in the guidelines,* - to clarify the screening/evaluation criteria and approach for approval of establishment, etc. of subsidiaries, including "entities aimed at enhancing their non-core businesses and/or core banking businesses," and - to abolish some of the related forms for the said approval, as well as to abolish some of the administrative report forms used at the Local Finance Bureaus. [*the amendments are reflected in all of the aforementioned comprehensive guidelines]. The finalized amendments took effect on August 9, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20220809/20220809.html  |
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| August 9, 2022 | Publication of the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Special Measures for Strengthening Financial Functions" after public consultation <Summary> The FSA has published the finalized "Cabinet Office Order to Amend the Cabinet Office Order on Special Measures for Strengthening Financial Functions" after public consultation. In accordance with the revision of the key performance indicators (KPIs) to evaluate financial institutions' initiatives and efforts in implementing measures that contribute to the revitalization of the regional economy, the finalized Cabinet Office Order updates the appended forms of the following: - the "Cabinet Office Order on Special Measures for Strengthening Financial Functions" - the "Order on Special Measures for Strengthening Financial Functions of Labor Banks and Federations of Labor Banks," and - the "Order on Special Measures for Strengthening Financial Functions of Agricultural and Fishery Cooperatives." The finalized Cabinet Office Order was enforced on August 9, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20220809-2/20220809-2.html |
| August 5, 2022 | Publication of the draft amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers for public consultation <Summary> The FSA proposed the draft amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers for public consultation. The proposal mainly intends to set forth the following in the Guidelines: - Supervisory measures to be taken for funds transfer service providers in response to the expansion of eligibility for participation in the Zengin System (data telecommunication system for all banks in Japan) - Measures to be taken against entities that are operating financial instruments businesses without proper registration (those who engage in exchange transactions without a license under the "Banking Act" or registration as a funds transfer service provider under the "Payment Services Act"). Public comments will be accepted until 5:00 p.m. [JST], September 5, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20220805/20220805.html |
| August 5, 2022 | Publication of the finalized "Cabinet Office Order Partially Amending the Cabinet Office Order on Regulation of Over-the-Counter Transactions of Derivatives, etc." and the "regulatory notice for matters that specify other unavoidable reasons pursuant to the provisions of Article 3-2 (iv) and Article 7-2 (iv) of the Cabinet Office Order on Regulation of Over-the -Counter Transactions of Derivatives, etc." after public consultation <Summary> The FSA published the finalized "Cabinet Office Order Partially Amending the Cabinet Office Order on Regulation of Over-the-Counter Transactions of Derivatives, etc." and the "regulatory notice for matters that specify other unavoidable reasons pursuant to the provisions of Article 3-2 (iv) and Article 7-2 (iv) of the Cabinet Office Order on Regulation of Over-the -Counter Transactions of Derivatives, etc." after public consultation. The finalized Cabinet Office Order and the regulatory notice enhance the recordkeeping and reporting items under the system of OTC derivatives transaction information to enable international data aggregation. The finalized Cabinet Office Order and the regulatory notice were enforced on August 5, 2022, whereas the amendments set forth in the supplementary provisions of the said Cabinet Office Order will be enforced on April 1, 2024. Note: The finalized Cabinet Office Order and the regulatory notice are based on publications by the Committee on Payments and Market Infrastructures under the BIS (Bank for International Settlements), namely, "Harmonisation of critical OTC derivatives data elements (other than UTI and UPI )," "Harmonisation of the Unique Product Identifier," and "Harmonisation of the Unique Transaction Identifier."The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20220805/20220805.html |
Press Releases
International
| August 17, 2022 | Updated : International Financial Center Website |
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Banks
| August 5, 2022 | Publication of the updated Answers to Frequently Asked Questions Regarding "Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism" <Summary> The FSA has published the updated Answers to Frequently Asked Questions Regarding  "Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism," aimed at clarifying the FSA's perspectives and approaches by adding updated description and practices. (The updated FAQ is currently available only in Japanese. The English translation will be published in due course).The updates are mainly intended to further instill the FSA's perspectives and approaches on financial institutions' AML/CFT measures in response to the findings from the monitoring and other relevant activities conducted since the publication of the FAQ in March 2021. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/202208_amlcft_faq/202208_amlcft_faq.html |
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Securities
| August 17, 2022 | 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 17, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20220817/20220817_groupshitei.html |
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| August 10, 2022 | Administrative penalty charge against an individual (a non-insider/retail investor) for commiting insider trading regarding stocks of RECOMM CO.,LTD. by using insider information received from an employee of the entity <Summary> On August 9, 2022, the FSA issued an order to impose an administrative penalty charge against an individual (a non-insider/retail investor) for committing insider trading regarding stocks of RECOMM CO.,LTD. by using information received from an employee of the entity, in violation of the "Financial Instruments and Exchange Act." The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/shouken/20220809.html |
| August 9, 2022 | Guidebook for Registration of Investment Management Business and Other Financial Instruments Businesses |
Insurance
| August 10, 2022 | Administrative action against Pets Best Japan Co., Ltd. (The Kanto Local Finance Bureau) <Summary> The Kanto Local Finance Bureau took administrative action against Pets Best Japan Co., Ltd., ordering the suspension* of the entity's small amount and short term insurance business operations in regard to services associated with the solicitation and conclusion of new policies and the renewal of policies (except for certain services that are exempted from suspension of operations by the Kanto Local Finance Bureau from a customer-protection perspective), from August 11, 2022, to October 10, 2022, pursuant to the "Insurance Business Act." *This is the second order of suspension, following the previous suspension from June 11, 2022, to August 10, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/hoken/20220810.html |
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Others
| August 17, 2022 | Publication of the main issues raised by the FSA at opinion exchange meetings with the relevant associations in the financial sector <Summary> The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with the relevant associations in the financial sector in July and August 2022. (Available only in Japanese). Common topics across the groups were: -Review of procedures for paperwork, signing and sealing, and in-person responses/services in the financial sector, and -Sustainable finance initiatives. A notable issue discussed by most but not all groups was: -Financial institutions' initiatives and efforts based on the "Principles for Customer-Oriented Business Conduct." * To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, the FSA publishes every month the main issues raised by the FSA at opinion exchange meetings with the relevant associations** in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis. ** In July and August 2022, opinion exchange meetings were held respectively with seven groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; The National Association of Shinkin Banks; the Trust Companies Association of Japan; the Life Insurance Association of Japan; the General Insurance Association of Japan; and the Japan Securities Dealers Association (JSDA). The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/common/ronten/index.html |
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| August 10, 2022 | Request for financial measures to deal with disasters caused by the heavy rain from August 3, 2022 (The Hokuriku Local Finance Bureau and the Tohoku Local Finance Bureau) <Summary> The following Local Finance Bureaus alongside the competent Branches of the Bank of Japan issued statements titled "Financial Measures to Deal with Disasters Caused by the Heavy Rain from August 3, 2022" to the relevant financial institutions: - The Hokuriku Local Finance Bureau alongside the Bank of Japan's Kanazawa Branch ( Statement issued as of August 5, 2022)- The Fukui Local Finance Branch Bureau under the Hokuriku Local Finance Bureau alongside the Bank of Japan's Kanazawa Branch ( Statement issued as of August 5, 2022)- The Tohoku Local Finance Bureau alongside the Bank of Japan's Aomori Branch ( Statement issued as of August 10, 2022)(The statements above are available only in Japanese). The said statements request financial institutions in Ishikawa, Fukui, and Aomori prefectures* to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible. * Disaster-affected areas in those three prefectures are currently subject to the "Disaster Relief Act." If more areas in the prefectures become subject to the said Act, financial institutions in the prefectures will be requested to take measures in the same manner as above accordingly. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20220804.html |
| August 10, 2022 | Publication of the outline of proceedings and handouts of the opinion exchange meeting with disabilities associations and financial institution-related associations (including bank associations of deposit taking financial institutions) <Summary> The FSA published an outline of proceedings and handouts of the opinion exchange meeting with disabilities associations and financial institution-related associations (including bank associations of deposit taking financial institutions, such as Japanese Bankers Association) which was held on June 28, 2022. The opinion exchange meeting is aimed at promoting initiatives at financial institutions that take into account the needs of financial services-users with disabilities, and so forth. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20220810/20220810.html |
| August 10, 2022 | Stewardship Code : 322 institutional investors have signed up to the Principles for Responsible Institutional Investors as of July 31, 2022 |
| August 9, 2022 | Warning with respect to the recent developments that call for implementation of cybersecurity measures at financial institutions, particularly during long summer holidays <Summary> On August 8, 2022, the FSA urged financial institutions to implement cyber security measures during long summer holidays, in light of the recent surge in potential threats of cyber-attacks. In addition, the FSA reminded financial institutions to promptly report to the FSA or the Local Finance Bureaus in the event of a cyber-attack. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/cyber/0809oshirase.html |
| August 8, 2022 | Publication of "Statistics of NISA and Junior NISA Accounts" as of March 31, 2022 <Summary> The FSA has published (the latest) "Statistics of NISA and Junior NISA Accounts." As of March 31, 2022, there were approximately 17.0 million NISA accounts in total, and approximately 27.1 trillion yen (approximately 200.2 billion USD) was invested through the NISA accounts, among which, 1.8 trillion yen (approximately 13.3 billion USD) was invested through approximately 5.9 million accounts of the Tsumitate NISA (Dollar-Cost Averaging NISA) which has started since January 2018. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/policy/nisa/20220808-2.html |
| August 8, 2022 | Publication of "Statistics of NISA and Junior NISA Accounts" as of December 31, 2021 (revised figures) <Summary> The FSA has published "Statistics of NISA and Junior NISA Accounts" (revised figures). As of December 31, 2021, there were approximately 17.7 million NISA accounts in total, and approximately 25.5 trillion yen (approximately 188.9 billion USD) was invested through the NISA accounts, among which, 1.5 trillion yen (approximately 11.3 billion USD) was invested through approximately 5.2 million accounts of the Tsumitate NISA (Dollar-Cost Averaging NISA) which has started since January 2018. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/policy/nisa/20220808.html |
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