FSA Weekly Review No.519 December 22, 2022

FSA Weekly Review No.519: December 22, 2022

What’s New on the FSA Website

Week of December 9, 2022 - December 15, 2022

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

Public Comments

December 15, 2022	Publication of the exposure draft for the revision of "Standards and Practice Standards for Management Assessment and Audit concerning Internal Control over Financial Reporting" (provisional English title) for public consultation <Summary> The FSA proposed the exposure draft for the revision of "Standards and Practice Standards for Management Assessment and Audit concerning Internal Control over Financial Reporting" (provisional English title) compiled by the Internal Control Committee of the Business Accounting Council for public consultation. The exposure draft is based on the discussions held since October 2022 in the Internal Control Committee mainly in regard to the basic framework of internal control, assessment and reporting of internal control by corporate management, internal control audit by auditors, and actions to be taken when an internal control report is revised, aimed at improving the effectiveness of internal control. Public comments will be accepted until 5:00 p.m. [JST], January 19, 2023. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20221215.html
December 9, 2022	Publication of the updated "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Guidelines <Summary> The FSA updated the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Guidelines in response to the enforcement of the "Act Partially Amending the Industrial Competitiveness Enhancement Act, etc." (Act No. 70 of 2021). The updates mainly pertain to technical amendments, and no public consultation was conducted, for the updates fall under cases prescribed in the "Administrative Procedures Act" as being insignificantly changed and not requiring the implementation of procedures for public consultation, such as the arrangement of the provisions necessary in accordance with the establishment, amendment or repeal of other laws and regulations, etc. The updates took effect on December 9, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20221209.html
December 9, 2022	Publication of the draft "Order to Amend the Regulation for Enforcement of the Deposit Insurance Act" for public consultation <Summary> The FSA published the draft "Order to Amend the Regulation for Enforcement of the Deposit Insurance Act" for public consultation. In light of expanding the scope of eligibility for participation in the Zengin System (which is a nation-wide online network system for banks handling domestic funds transfers) to include funds transfer service providers, the proposal is aimed at newly specifying funds transfer service providers as those specified by Cabinet Office Orders and Ministry of Finance Orders prescribed in Article 69-4, Paragraph 1 of the "Deposit Insurance Act" (settlement creditors who are allowed to offset settlement obligations with insolvent financial institutions under certain conditions pursuant to the special provisions of the "Bankruptcy Act," etc. pertaining to settlement obligations stipulated in the same paragraph) by providing amendments to Article 24-2 of the "Regulation for Enforcement of the Deposit Insurance Act." Public comments will be accepted until 12:00 p.m. (noon) [JST], January 10, 2023. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/sonota/20221209-2/20221209.html
December 9, 2022	Finalization of the "Guidelines for Creating, Recordkeeping and Reporting of Transaction Information specified in Article 4(1) of the Cabinet Office Order on the Regulation of Over-the-Counter Derivatives, etc."

Press Releases

Policies

December 12, 2022	Updated : Publication of the summary from "The JFSA Strategic Priorities July 2022-June 2023"

Publication

December 15, 2022	Guideline for Supervision of Issuers of Prepaid Payment Instruments
December 15, 2022	Guideline for Supervision of Funds Transfer Service Providers
December 15, 2022	Guideline for Supervision of Crypto-Asset Exchange Service Providers
December 12, 2022	FSA publishes English translation of monthly magazine, Access FSA No.228

Councils

December 15, 2022	Finalization of “the Code of Conduct for ESG Evaluation and Data Providers”
December 15, 2022	Publication of the agenda and handouts of the 15th meeting of the "Expert Panel on Sustainable Finance" <Summary> The FSA published the agenda and handouts of the 15th meeting of the "Expert Panel on Sustainable Finance,"* which was held on December 15, 2022. The secretariat of the expert panel gave a briefing on the following, whereby the expert panel members discussed the respective key topics thereof. - Status of international discussions on nature-related financial risks, and - Recent initiatives in regard to sustainable finance. *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/20221215.html
December 14, 2022	Publication of the agenda and handouts of the fourth meeting of the "Working Group on Corporate Disclosure" (FY 2022) of the Financial System Council <Summary> The FSA published the agenda and handouts of the fourth meeting of the "Working Group on Corporate Disclosure" (FY 2022) of the Financial System Council, which was held on December 15, 2022. The working group secretariat (i.e. the FSA) gave a briefing on the draft "Summary Report of the Working Group on Corporate Disclosure (FY 2022)" (provisional English title) and on the draft "Roadmap of Corporate Sustainability Disclosure in Japan" (provisional English title) [both papers are available only in Japanese], followed by a discussion. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/singi_kinyu/disclose_wg/siryou/20221215.html
December 13, 2022	Publication of a package of key initiatives/measures to facilitate investing for GX (Green Transformation) [available only in Japanese] compiled based on discussions at the "Study Group on Financing from the Private Sector to Help Corporate Initiatives for GX (Green Transformation) in Industries" (provisional English title) <Summary> The FSA published a package of key initiatives/measures to facilitate investing for GX (Green Transformation) [available only in Japanese] compiled based on discussions at the "Study Group on Financing from the Public Sector to Help Corporate Initiatives for GX (Green Transformation) in Industries" (provisional English title). Since August 2022, the FSA has been co-hosting the Study Group with the Ministry of Economy, Trade and Industry (METI), and the Ministry of the Environment (MOE). Agenda and handouts of the previous meetings are available (only in Japanese) on the website of METI. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/singi/20221213.html
December 13, 2022	The 20th Consultation Meeting in Relation to the Multiple-Debt Problem and Consumer Finance <Summary> On December 20, 2022, the FSA and the Consumer Affairs Agency jointly held the 20th Consultation Meeting in Relation to the Multiple-Debt Problem and Consumer Finance. The consultation meeting was held to follow up the status on lenders and borrowers as part of the measures based on the "Program to Remedy the Multiple-Debt Problem." The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/policy/kashikin/tajusaimukondankai/20221213.html
December 12, 2022	Publication of the agenda and handouts of the eighth meeting of the "Council of Experts on Audit Firm Governance Code" <Summary> The FSA published the agenda and handouts of the eighth meeting of the "Council of Experts on Audit Firm Governance Code," which was held on December 13, 2022. The secretariat gave a briefing on the draft revision of the "Audit Firm Governance Code" based on the previous discussions, whereby the JICPA (Japanese Institute of Certified Public Accountants) outlined the direction of its quality control activities in light of the revision of the "Registration System for Listed Company Audit Firms," followed by a discussion among the participants. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/governance_code/siryou/20221213.html
December 12, 2022	Publication of the agenda and handouts of the third meeting of the "Working Group on Legal Institutions for Cash-flow-focused Lending Practices" (provisional English title) of the Financial System Council <Summary> The FSA published the agenda and handouts of the third meeting of the "Working Group on Legal Institutions for Cash-flow-focused Lending Practices" (provisional English title) of the Financial System Council, which was held on December 13, 2022. In the third meeting, the working group members shared their comments from the first and second meetings, and discussed additional topics requiring further discussion. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/singi_kinyu/jigyoyushi_wg/siryou/20221213.html
December 9, 2022	Publication of the agenda and handouts of the 23rd 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 23rd meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council, which was held on December 12, 2022. Based on discussions at previous meetings, the working group members discussed the content of "Second Interim Report of the Working Group on Capital Market Regulations (Draft)" [provisional English title] (available only in Japanese). The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/singi_kinyu/market-system/siryou/20221212.html
December 9, 2022	Publication of the "Customer-Oriented Business Conduct Task Force Interim Report" (provisional English title) [available only in Japanese] compiled by the "Customer-Oriented Business Conduct Task Force" (provisional English title) of the Financial System Council <Summary> The FSA published the "Customer-Oriented Business Conduct Task Force Interim Report" (provisional English title) [available only in Japanese] compiled by the "Customer-Oriented Business Conduct Task Force"* (provisional English title) of the Financial System Council. The report is based on a series of discussions held by the Task Force on topics including customer-oriented business conduct in the financial sector as well as financial and economic education, aimed at achieving stable asset formation for households. * This task force was launched by "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council to further discuss matters related to customer-oriented business conduct. The FSA serves as the secretariat of both the task force and the working group. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/singi/singi_kinyu/tosin/20221209.html

Banks

December 15, 2022	Publication of a trial version of "Business Support Methods for Respective Industries" (provisional English title) [for public consultation] <Summary> The FSA commissioned Japan Productivity Center to conduct a research project, aimed at further enhancing capabilities of on-site personnel at regional financial institutions to support corporate borrowers' business management in terms of efficient financing and consulting. In this regard, based on the commissioned research, Japan Productivity Center has compiled key focus points for regional financial institutions to provide efficient financing and consulting services for corporate clients (corporate borrowers) by business sector type, where business support needs are particularly anticipated, thereby publishing them as a trial version of "Business Support Methods for Respective Industries" (provisional English title) [available only in Japanese] on its website for public consultation. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20221215/20221215.html
December 9, 2022	Report on the measures for the resolution of failed financial institutions <Summary> The FSA submitted to the National Diet a report on the measures for the resolution of failed financial institutions (the FRC report) pursuant to the "Act on Emergency Measures for the Revitalization of the Financial Functions." The report covers developments between April 1, 2022, and September 30, 2022. The original press release is available in Japanese at the following URL. https://www.fsa.go.jp/news/r4/ginkou/20221209/221209.html
December 9, 2022	Updated : Living in Japan: How to Open a Bank Account and Send Money

Securities

December 13, 2022	Administrative penalty charge against Evolution Trading Ltd for market manipulation regarding stocks of Yamaha Corporation <Summary> On December 12, 2022, the FSA issued an order to impose an administrative penalty charge against Evolution Trading Ltd for market manipulation regarding stocks of Yamaha Corporation, 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/20221212-1.html
December 13, 2022	Administrative penalty charge against Agile Media Network Inc. for making false statements in its securities reports and so forth <Summary> On December 12, 2022, the FSA issued an order to impose an administrative penalty charge against Agile Media Network Inc. for making false statements in its securities reports and so forth, 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/20221212-2.html
December 13, 2022	Administrative penalty charge against amana inc. for making false statements in its securities reports and so forth <Summary> On December 12, 2022, the FSA issued an order to impose an administrative penalty charge against amana inc. for making false statements in its securities reports and so forth, 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/20221212-3.html

Others

December 9, 2022	Stewardship Code : 322 institutional investors have signed up to the Principles for Responsible Institutional Investors as of November 30, 2022
December 9, 2022	Administrative Actions against FTX Japan, Inc.

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