Financial Services AgencyFSA Weekly Review No.554

September 22, 2023

What’s New on the FSA Website

Week of September 8, 2023 - September 14, 2023

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

Press Releases

Councils

September 14, 2023 Publication of the agenda and handouts of the 24th 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 24th meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council, which was held on September 15, 2023. 
The working group members engaged in discussion mainly in regard to the following:
- Bills* submitted by the FSA
- Initiatives and efforts taken by financial instruments exchanges, and
- Corporate bond markets.
 
*The bills to partially amend the "Financial Instruments and Exchange Act," etc. and to partially amend the "Act on Book-Entry Transfer of Corporate Bonds and Shares," etc. to respond to changes in the environment involving advances in information technology (provisional English law title for the latter Act), which were each submitted to the 211th ordinary Diet session.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/singi/singi_kinyu/market-system/siryou/20230915.htmlopen new window

Banks

September 12, 2023 Request for financial measures in light of the impact of import control measures, etc. taken by the countries or regions to which Japanese marine products are exported in response to the discharge of Advanced Liquid Processing System (ALPS) Treated Water to the sea
<Summary>
The FSA, alongside the Cabinet Office, Ministry of Finance, Ministry of Health, Labor and Welfare, Ministry of Agriculture, Forestry and Fisheries, the Fisheries Agency, and the Small and Medium Enterprise Agency jointly issued a statement titled "Financial Measures in Light of the Impact of Import Control Measures, etc. Taken by the Countries or Regions to Which Japanese Marine Products are Exported in Response to the Discharge of Advanced Liquid Processing System (ALPS) Treated Water* to the Sea"open new window(available only in Japanese) to the relevant financial institutions.
The statement requests financial institutions to provide financial support to their corporate borrowers (business operators, such as fishermen, fish famers, fish processors, wholesalers, etc.), considering their circumstances, such as by attentively responding to the needs of business management consultation and the need for new loans or change of loan terms.
The statement also requests financial institutions to proactively cooperate with support institutions (e.g., the Organization for Small & Medium Enterprises and Regional Innovation, and Japan External Trade Organization [JETRO]) as well as local governments to provide attentive and flexible support for corporate borrowers in terms of personnel-matching and expansion of sales channels by utilizing various government measures.
*Advanced Liquid Processing System (ALPS) treated water means water that has been purified to below the regulatory safety limits for radioactive materials other than tritium by a multinuclear removal system, etc.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20230912/20230912.htmlopen new window
September 11, 2023 Approval of the business restructuring plan for The Bank of Kyoto, Ltd.
<Summary>
The FSA approved and published the business restructuring plan for The Bank of Kyoto, Ltd. based on the "Industrial Competitiveness Enhancement Act."

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/202309011/230911-2.htmlopen new window
September 11, 2023 Authorization granted to The Bank of Kyoto, Ltd. to become a bank holding company by having a bank as its subsidiary
<Summary>
The FSA granted authorization to The Bank of Kyoto, Ltd. to become a bank holding company, namely, Kyoto Financial Group, Inc., by having a bank as its subsidiary, pursuant to the "Banking Act."

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/202309011/230911-1.htmlopen new window

Insurance

September 13, 2023 Results of the survey on insurance companies' efforts/initiatives taken to ensure that accessibility services are offered to their customers with disabilities
<Summary>
The FSA published the results of the survey on insurance companies' efforts/initiatives taken to ensure accessibility for their customers with disabilities (as of March 31, 2023).

The original press releases are available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/hoken/20230913/20230913.htmlopen new window
September 8, 2023 2023 International Association of Insurance Supervisors (IAIS) Annual General Meeting (AGM) and Annual Conference (AC)

Others

September 11, 2023 Request for financial measures to deal with disasters caused by Typhoon No.13, 2023 (The Kanto Local Finance Bureau and The Tohoku Local Finance Bureau)
<Summary>
The following Local Finance Bureaus alongside the competent Branch or Department of the Bank of Japan issued statements titled "Financial Measures to Deal with Disasters Caused by the Typhoon No.13, 2023" to the relevant financial institutions.
- The Kanto Local Finance Bureau alongside the Financial System and Bank Examination Department of the Bank of Japan (Statement issued as of September11, 2023 open new window),  and
- The Tohoku Local Finance Bureau alongside the Fukushima Branch of the Bank of Japan (Statement issued as of September 11, 2023 open new window)
(The statements above are available only in Japanese).
The statements request financial institutions in Chiba, Ibaraki, and Fukushima 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 Chiba and Ibaraki prefectures fall within the purview of the Kanto Local Finance Bureau, and those in Fukushima prefecture fall within the purview of the Tohoku 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/20230911.htmlopen new window
September 8, 2023 Publication of the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" (as of the end of June 2023), and the publication of an analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions on the said list (as of the end of March 2023)
<Summary>
The FSA updated the list of financial institutions satisfying the certain fill-in requirements of the designated reporting format pertaining to the status of their initiatives and efforts that have been taken so far and are to be taken based on the "Principles for Customer-Oriented Business Conduct" as of the end of June 2023, in order to visualize financial institutions' initiatives and efforts. 
The FSA aims at encouraging financial institutions to further visualize their customer-oriented business conduct by requesting them to meet the fill-in requirements of the format to report their initiatives and efforts based on the said Principles.
The FSA also published an updated trend analysis report on the common KPIs comparable across investment trust distributors reported by the respective financial institutions as of the end of March 2023. 

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/kokyakuhoni/20230908/fd_20230908.htmlopen new window
September 8, 2023 Administrative action against FTX Japan, Inc. (extension of the order of retention of assets within Japan for another three months) [The Kanto Local Finance Bureau]
<Summary>
The Kanto Local Finance Bureau took administrative action against FTX Japan, Inc., pursuant to the "Financial Instruments and Exchange Act" (hereinafter referred to as the "FIEA"), ordering the extension of the order of retention of assets* within Japan for another three months from September 10 to December 9, 2023, upon expiration of the order for the retention of assets within Japan issued on June 9, 2023 pursuant to Article 56-3 of the FIEA. 
This administrative action was taken to ensure the continued protection of investors, taking into account the fact that the company is subject to Chapter 11** bankruptcy filings under the U.S. Bankruptcy Code initiated by its parent company, etc. (The order to improve its business operations, which was issued on November 10, 2022, remains in effect.)
Details of the administrative action are available [only in Japanese] on the  website of the Kanto Local Finance Bureau open new window.
 
* "Assets" in this context refer to those retained within Japan from September 10, 2023, to December 9, 2023, equal to the amount of liabilities to be recorded in the liabilities section of the entity's balance sheet (including the amount of guarantee obligations) less the amount of liabilities to non-residents as of the respective dates (unless otherwise approved by the Bureau as being in the public interest or in the interest of investor protection).
** Chapter 11 of the U.S. Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. (Source: the webpage of the U.S. Federal Courts open new window) 

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/sonota/20230908/20230908.htmlopen new window

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