Financial Services AgencyFSA Weekly Review No.515

November 25, 2022

What’s New on the FSA Website

Week of November 11, 2022 - November 17, 2022

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

Press Conferences

November 16, 2022 Press Conference by the Minister of State for Financial Services (November 15, 2022) 
November 16, 2022 Press Conference by the Minister for State for Financial Services (November 11, 2022) 

Public Comments

November 11, 2022 Publication of the finalized amendments to the relevant and applicable Cabinet Office Orders, Ministerial Orders, and regulatory notices pertaining to leverage ratio requirements after public consultation
<Summary>
The FSA finalized the amendments to the relevant and applicable Cabinet Office Orders, Ministerial Orders, and regulatory notices pertaining to leverage ratio requirements after public consultation.
The FSA announced on March 25, 2022, that the temporary measure to exclude the outstanding balance of financial institutions' current accounts at the Bank of Japan (BOJ) from the calculation of leverage ratio exposures would end at the end of March 31, 2024. The finalized amendments to the Cabinet Office Orders, Ministerial Orders, and regulatory notices raise the required level of leverage ratio from 3% to 3.15%, while excluding the outstanding balance of financial institutions' current accounts at the BOJ from the exposure measure in exceptional macroeconomic circumstances after April 2024, for the post-COVID-19 response framework.
The said Cabinet Office Orders, Ministerial Orders, and regulatory notices will take effect on April 1, 2024.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/ginkou/20221111.htmlopen new window

Press Releases

International 

November 11, 2022 FSA became a signatory to the IOSCO APRC (Asia-Pacific Regional Committee) Supervisory MMoU

Councils

November 17, 2022 Publication of the agenda and handouts of the 22nd meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the 22nd meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council, which was held on November 18, 2022.
The working group members mainly discussed the following:

- Smooth facilitation of growth funding

- Improvement of the functioning of financial market infrastructures, and

- Issues requiring institutional development in response to socio-economic digitalization.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/singi_kinyu/market-system/siryou/20221118.htmlopen new window
November 14, 2022 Publication of the agenda and handouts of the eighth meeting of the "Study Group on Digital- and Decentralized-Finance" (provisional English title)
<Summary>
The FSA published the agenda and handouts of the eighth meeting of the "Study Group on Digital- and Decentralized-Finance" (provisional English title), which was held on November 14, 2022.
The guests of the eighth meeting gave briefings on the following topics, followed by a discussion:

(1) the status of the use of tokens, including crypto assets, as a means of fundraising

(2) the assessment of the governance of the DeFi (Digital- and Decentralized-Finance) project, and of the soundness, reliability and security of DeFi project protocols.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/digital/siryou/20221114.htmlopen new window
November 11, 2022 Publication of the agenda and handouts of the seventh meeting of the "Council of Experts on Audit Firm Governance Code"
<Summary>
The FSA published the agenda and handouts of the seventh meeting of the "Council of Experts on Audit Firm Governance Code," which was held on November 14, 2022. The secretariat gave a briefing on the key contents of the discussion at the previous sixth meeting and outlined the direction of the review of the Audit Firm Governance Code based on the previous discussion thereof, followed by an outline of the draft initiatives JICPA (Japanese Institute of Certified Public Accountants) will take to support small- and medium-sized audit firms in developing their governance structures, whereby the participants engaged in free discussion based on those topics presented.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/governance_code/siryou/20221114.htmlopen new window

Others

November 17, 2022 Outline of the "Report on the Measures for the Resolution of Failed Financial Institutions" delivered by the Minister of State for Financial Services, SUZUKI Shunichi, in the Committee on Financial Affairs of the House of Councillors
<Summary>
The Minister of State for Financial Services, SUZUKI Shunichi, delivered an outline of the "Report on the Measures for the Resolution of Failed Financial Institutions" in the Committee on Financial Affairs of the House of Councillors. The report, addressing the semiannual period extending from April 1, 2021 to September 30, 2021, had been submitted to the Diet on December 17, 2021, pursuant to the "Act on Emergency Measures for the Revitalization of the Financial Functions."

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/common/diet/houkoku/041117/20221117.htmlopen new window
November 16, 2022 Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector 
<Summary>
The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with relevant associations in the financial sector in October 2022. (Available only in Japanese).
 
The common topic across the groups was:

- Semi-annual follow-up questionnaire with the respective financial institutions to ascertain the development status of their risk management systems for AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism).


Notable issues discussed by most but not all groups were:

- Publicity concerning AML/CFT measures

- "The JFSA Strategic Priorities July 2022-June 2023," and

- Promotion of the use and dissemination of "My Number Card" (personal identification card) [including efforts and initiatives that have been taken in the financial sector to promote the acquisition of "My Number Card"].

 

*  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 October 2022, opinion exchange meetings were held respectively with six groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; The National Association of Shinkin Banks; the Japan Investment Advisers Association; The Financial Futures Association of Japan; and Japan Financial Services Association.


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/common/ronten/index.html#Octoberopen new window
November 14, 2022 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
November 11, 2022 Publication of the "Examples of Indicators for Social Benefits of Social Projects”
November 11, 2022 Administrative Actions against FTX Japan, Inc.

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