Financial Services AgencyFSA Weekly Review No.567

December 21, 2023

What’s New on the FSA Website

Week of December 8, 2023 - December 14, 2023

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

Press Conferences

December 12, 2022 Press Conferences by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services 

Public Comments

December 8, 2022 Publication of the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" alongside other relevant and applicable draft Orders and Cabinet Office Orders for public consultation
<Summary>
The FSA published the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" alongside other relevant and applicable draft Orders and Cabinet Office Orders (hereinafter collectively referred to as the "proposal") for public consultation.
The proposal is mainly intended to provide amendments to the said Regulation for Enforcement in regard to electronic payment services:
(1) to exempt intra-group transmission of remittance instructions and acquisition of information on deposit accounts from the scope of the regulation for electronic payment services, and 
(2) to clarify measures to promote Application Programming Interface (API) integration.

Public comments will be accepted until 5:00 p.m. [JST], January 15, 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231208-2/20231208.htmlopen new window
December 8, 2022 Publication of draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others for public consultation
<Summary>
The FSA has published the draft "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others (hereinafter collectively referred to as the "proposal") for public consultation. 
The proposal is mainly intended to provide consequential amendments to the provisions of the said Cabinet Orders and Cabinet Office Orders, etc., in response to the enforcement of the provisions regarding the abolition of the quarterly securities report system set forth in the "Act Partially Amending the Financial Instruments and Exchange Act, and Other Acts" (Act No. 79 of November 29, 2023), which was enacted on November 20, 2023. 
Public comments will be accepted until 5:00 p.m. [JST], January 9, 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/sonota/20231208/20231208.htmlopen new window

Press Releases

Policies

December 14, 2023 Policy Plan for Promoting Japan as a Leading Asset Management Center

Councils

December 13, 2023
December 8, 2023		 Establishment of "Dialogue on Enhancing Sustainability Investment Products" (provisional English title) and the publication of the agenda and handouts of the first meeting of the said Dialogue
<Summary>
The FSA has established "Dialogue on Enhancing Sustainability Investment Products," aimed at sharing basic awareness of the desirable state of Green Transformation (GX) investments and sustainability investment products in the Japanese market through dialogue with relevant stakeholders.* 
In this regard, the FSA published the agenda and handouts of the first meeting of the Dialogue, which was held on December 13, 2023. 
In the first meeting, the secretariat (the FSA) and two guest practitioners from the private sector respectively gave briefings/presentations on the current state of the Japanese market and developments in other countries, whereupon the participants engaged in a discussion based on the topics presented.

*The meetings for the said Dialogue will be held with broad participation on a case-by-case basis by practitioners and professionals from various sectors involved in sustainable investment products, including asset management companies, distributors, portfolio companies (investees), individual investors, and relevant associations. The FSA will serve as the secretariat.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/singi/20231208.htmlopen new window
https://www.fsa.go.jp/singi/dialogue/siryou/20231213.htmlopen new window
December 13, 2023 Report of Working Group on Capital Market Regulations and Asset Management Task Force
December 12, 2023 The sixth meeting of the Working Group on Tender Offer Rule and Large Shareholding Reporting Rule of the Financial System Council

Banks

December 13, 2023 Request to Japan Federation of Bar Associations to further instill favorable practices of liquidation of guarantee obligations based on "Basic Perspectives of 'Guidelines for Personal Guarantee Provided by Business Owners' in the Event of the Closure of a Business" (provisional English title), and the publication of a brochure regarding the said Guidelines for business owners
<Summary>
The FSA requested Japan Federation of Bar Associations to further instill good (desirable) practices of liquidation of guarantee obligations in attorneys and other legal service providers based on "Basic Perspectives of 'Guidelines for Personal Guarantee Provided by Business Owners' in the Event of the Closure of a Business"* (provisional English title), which was published in March 2022. In this regard, the FSA published a brochure regarding the said Guidelines for business owners.

*The basic perspectives of the guidelines are expected to serve as an aid to the understanding of principal obligors (debtors)/guarantors, applicable obligees (creditors), and professionals/practitioners involved in the liquidation of guarantee obligations, whereas the guidelines are expected to be widely utilized by SMEs, managers, and financial institutions, thereby contributing to the development of the overall Japanese economy.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231213.htmlopen new window
https://www.fsa.go.jp/news/r5/ginkou/20231213-2.htmlopen new window
December 8, 2023 Report on measures for the resolution of failed financial institutions
<Summary>
The FSA submitted to the National Diet a report (FRC [Financial Reconstruction Commission] report) on measures for the resolution of failed financial institutions pursuant to the "Act on Emergency Measures for the Revitalization of the Financial Functions." The report covers developments between April 1, 2023, and September 30, 2023.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20231208/20231208.htmlopen new window
December 8, 2023 Overview of the Japanese regional banks’ financial results for six months ended September 30, 2023

Securities

December 8, 2023 Publication of the updated easy-to-read edition of "Answers to Frequently Asked Questions" on insider trading regulation
<Summary>
The FSA updated the easy-to-read edition of "Answers to Frequently Asked Questions" on insider trading regulation for retail investors (including novice investors) and non-investors to provide an easy understanding of the basics of insider trading regulation as well as of the guidelines, etc. for the regulatory interpretation of the relevant and applicable laws and regulations.
The new updates mainly pertain to answers to questions in regard to requirements for certain agreements and plans for the sale, purchase, etc. of regulated securities of a listed company that were entered into or decided upon before material facts pertaining to a listed company were known, as well as the application of insider trading regulation regarding stock compensation.

The original press releases are available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/shouken/20231208/20231208.htmlopen new window

Insurance

December 8, 2023 Summary of 2023 International Association of Insurance Supervisors (IAIS) Annual General Meeting and Annual Conference and the "FSA High-Level Dialogue”

Others

December 13, 2023 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
December 11, 2023 The FSA's initiatives for the reduction of food loss as well as food donation through the effective use of a portion of the government's emergency food reserves
<Summary>
From the perspective of reducing food loss and supporting people in need, the FSA has been engaging in food donation to food bank (hunger-relief) organizations and other outreach groups since August 2021, by making effective use of a portion of food reserves (mainly non-perishable foods, such as canned goods) that are originally kept for disaster-relief/emergency by the government. 
The FSA has called for applications for its 11th offering of a portion of its emergency food reserves subsequent to the previous offering made in July 2023. (The offering is for residents in Japan).

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/choutatu/choutatu_j/choutatsu_saigaisyokuhin.htmlopen new window
December 8, 2022 Summary of Results of the Launch Event for Japan’s Impact Consortium
December 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 December 10, 2023, to March 9, 2024, 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 December 10, 2023, to March 9, 2024, 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/20231208-2/20231208-2.htmlopen new window

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