Financial Services AgencyFSA Weekly Review No.550

August 24, 2023

What’s New on the FSA Website

Week of August 4, 2023 - August 17, 2023

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

Public Comments

August 9, 2023 Publication of the finalized "Cabinet Office Order on the Designation, etc. of Specified Social Infrastructure Providers and Other Related Entities, Based on the Act on the Promotion of Ensuring Economic Security Through Implementation of Integrated Economic Measures" (i.e. the "Economic Security Promotion Act") [provisional English title] and other relevant and applicable finalized Orders after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order on the Designation, etc. of Specified Social Infrastructure Providers and Other Related Entities, Based on the Act on the Promotion of Ensuring Economic Security Through Implementation of Integrated Economic Measures" (i.e. the "Economic Security Promotion Act") [provisional English title] and other relevant and applicable finalized Orders after public consultation.
The finalized Cabinet Office Order sets forth proceedings pertaining to the designation, etc. of specified social infrastructure providers, including the description (details) of specified important facilities applicable to the financial sector, criteria for designating specified social infrastructure providers, and the format, etc. (modalities) of the notification for designation, in response to the enforcement of the "Economic Security Promotion Act" (provisional English title).
The finalized Cabinet Office Order and other relevant and applicable Orders will be enforced in due course, in accordance with the provisions set forth in Article 1, item 3 of the Supplementary Provisions of the "Economic Security Promotion Act" (provisional English title) [Act No. 43 of 2022].*
*The date of enforcement will be within a period not exceeding one year and six months from the date of promulgation (May 18, 2022) of the said Act, as set forth in the applicable Cabinet Order.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/sonota/20230809/20230809.htmlopen new window

Press Releases

Securities

August 10, 2023 Administrative action against Sky Capital Co., Ltd.
<Summary>
The Kanto Local Finance Bureau took administrative action against Sky Capital Co., Ltd., a Type II financial instruments business operator, ordering the revocation of the entity’s registration and the improvement of its business operations pursuant to the "Financial Instruments and Exchange Act" (FIEA). 
The administrative action was taken based on the facts found to have been in violation of the FIEA, such as where the entity failed to file the mandatory business reports (i.e. "jigyo-hokokusho" in Japanese) with the Bureau, and failed to have necessary systems in place to appropriately conduct Type II financial instruments business.

The original press releases are available in Japanese at the following URLs:
https://www.fsa.go.jp/news/r5/shouken/20230810.htmlopen new window
August 8, 2023 Administrative penalty charge against TABIKOBO Co. Ltd. for making false statements in its securities reports and so forth
<Summary>
On August 7, 2023, the FSA issued an order to impose an administrative penalty charge against TABIKOBO Co. Ltd. for making false statements in its securities reports and so forth, in violation of the "Financial Instruments and Exchange Act."

The original press releases are available in Japanese at the following URLs:
https://www.fsa.go.jp/news/r5/shouken/20230807-1.htmlopen new window
August 8, 2023 Administrative penalty charge against an individual (non-insider/retail investor) for committing insider trading regarding stocks of TOHTO SUISAN CO., LTD., by using information received from an officer of the entity
<Summary>
On August 7, 2023, the FSA issued an order to impose an administrative penalty charge against an individual (non-insider/retail investor) for committing insider trading regarding stocks of TOHTO SUISAN CO., LTD., in violation of the "Financial Instruments and Exchange Act," by using information received from an officer of the entity.

The original press releases are available in Japanese at the following URLs:
https://www.fsa.go.jp/news/r5/shouken/20230807-2.htmlopen new window

Others

August 16, 2023
August 15, 2023		 Request for financial measures to deal with disasters caused by Typhoon No.7, 2023 (The Kinki Local Finance Bureau and The Chugoku 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 Typhoon No.7, 2023" to the relevant financial institutions.
 
- The Kinki Local Finance Bureau alongside the Kyoto Branch of the Bank of Japan (Statement issued as of August 15, 2023)  open new window
- The Kinki Local Finance Bureau alongside the Kobe Branch of the Bank of Japan (Statement issued as of August 16, 2023), open new window  and
- The Chugoku Local Finance Bureau alongside the Matsue Branch of the Bank of Japan (PDFStatement issued as of August 16, 2023)  open new window
(The statements above are available only in Japanese).
 
The statements request financial institutions in Kyoto, Hyogo and Tottori prefectures to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible. 
 
* Matters related to financial measures in Kyoto and Hyogo prefectures fall within the purview of the Kinki Local Finance Bureau, and those in Tottori prefecture are within the purview of the Chugoku Local Finance Bureau). 
Disaster-affected areas in the 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/r5/ginkou/20230815.htmlopen new window
August 10, 2023 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 July 2023. (Available only in Japanese).
 
Common topics across the groups were:
- Report on the current status and challenges regarding anti-money laundering, counter financing of terrorism, and counter proliferation financing in Japan (as of June 2023), and the development of financial institutions risk management systems in terms of AML/CFT/CPF (Anti-Money Laundering, Counter Financing of Terrorism, and Counter Proliferation Financing)
- Analysis report on financial Institutions' IT system failures
- Draft "Cabinet Office Order on the Designation, etc. of Specified Social Infrastructure Providers and Other Related Entities, Based on the Act on the Promotion of Ensuring Economic Security Through Implementation of Integrated Economic Measures" (i.e. the "Economic Security Promotion Act") [provisional English title] and other relevant and applicable draft Orders, and
- Initiatives for sustainable finance.
 
Notable issues discussed by most but not all groups were:
- Request for financial measures to deal with disasters caused by the heavy rain from June 29, 2023, and from July 7, 2023, respectively, and
- Initiatives related to "Japan Weeks" (scheduled to be held from September 25 to October 6, 2023, inviting foreign investors and asset managers to communicate the attractiveness of Japan as a financial and capital market and to promote the government's initiatives to make Japan an asset management powerhouse while furthering efforts toward the realization of an international financial center).
 
* To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes 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 2023, opinion exchange meetings were held respectively with the following seven groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; Trust Companies Association of Japan; the Life Insurance Association of Japan; the General Insurance Association of Japan; the Japan Securities Dealers Association (JSDA); and the National Association of Shinkin Banks.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/common/ronten/index.htmlopen new window
August 10, 2023 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 29, 2023.
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/r5/ginkou/20230810/20230810.htmlopen new window
August 9, 2023 Request for financial measures to deal with disasters caused by the heavy rain from July 7, 2023 (The Hokuriku Local Finance Bureau)
<Summary>
The Hokuriku Local Finance Bureau alongside the Kanazawa Branch of the Bank of Japan (PDFStatement issued as of August 9, 2023) open new window [available only in Japanese] issued a statement titled "Financial Measures to Deal with Disasters Caused by the Heavy Rain from July 7, 2023" to the relevant financial institutions.
The said statement (available only in Japanese) requests financial institutions in Ishikawa prefecture* to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible. 
 
* Matters related to financial measures in Ishikawa prefecture fall within the purview of the Hokuriku Local Finance Bureau. 
Disaster-affected area in the said prefecture is currently subject to the "Disaster Relief Act." If more areas in the prefecture become subject to the said Act, financial institutions in the prefecture 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/r5/ginkou/20230710.htmlopen new window
August 8, 2023 Warning against a surge in online banking fraud
<Summary>
In response to the surge in online banking fraud in the first half of 2023, where a record high of 2,322 cases with a total loss of approximately three billion yen were reported, the FSA issued a warning against online banking fraud arising from SMS (short message services)/email phishing attacks. 
To widely raise awareness of financial services users, the FSA, in collaboration with the National Police Agency, has shared on its website and twitter account information about the scamming methods used by offenders in money-transfer scams targeting online financial services users, urging users to take precautions, such as not opening unknown SMS messages and so forth. The FSA also urges financial services users to report to (and/or consult with) the authorities (such as the police or the FSA's Counseling Office for Financial Services Users), or the contact point of the Japanese Bank Association whenever any sign of fraudulence is detected.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/ordinary/internet-bank_2.htmlopen new window
August 4, 2023 Request for financial measures to deal with disasters, etc. associated with power outages caused by Typhoon No. 6, 2023 (The Okinawa General Bureau of the Cabinet Office)
<Summary>
The Okinawa General Bureau of the Cabinet Office, alongside the Bank of Japan's Naha Branch, issued a statement titled PDF"Request for financial measures to deal with disasters, etc. associated with power outages caused by Typhoon No. 6, 2023" open new window  (available only in Japanese) to the relevant financial institutions. The statement requests financial institutions in Okinawa prefecture* to appropriately deal with victims of the disaster considering their circumstances, such as by making the repayment of deposits flexible. 
 
* Matters related to financial measures in Okinawa prefecture fall within the purview of the Okinawa General Bureau of the Cabinet Office. 
Disaster-affected areas in the said prefecture are currently subject to the "Disaster Relief Act." If more areas in the prefecture become subject to the said Act, financial institutions in the prefecture 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/r5/ginkou/20230804.htmlopen new window

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