Financial Services AgencyFSA Weekly Review No.571

January 25, 2024

What’s New on the FSA Website

Week of January 12, 2024 - January 18, 2024

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

Public Comments

January 18, 2024 Publication of the draft amendments to the "Regulation for Enforcement of the Act on the Use of Information and Communications Technology in the Preservation of Documents Conducted by Private Business Operators, etc. Pertaining to the Finance-Related Laws and Regulations That Fall Under the Jurisdiction of the Cabinet Office" (provisional English title) and others for public consultation
<Summary>
The FSA proposed the draft amendments to the "Regulation for Enforcement of the Act on the Use of Information and Communications Technology in the Preservation of Documents Conducted by Private Business Operators, etc. Pertaining to the Finance-Related Laws and Regulations That Fall Under the Jurisdiction of the Cabinet Office" (provisional English title) and others [hereinafter referred to as the "proposal"] for public consultation.
In line with the government-wide efforts and measures to conform to digital principles for administration procedures, the proposal is mainly intended to provide reasonable and necessary amendments to the relevant and applicable Cabinet Office Orders, etc. that fall under the jurisdiction of the FSA, by allowing the use of the internet to make documents available for browsing and public inspection using electronic or magnetic records.
Public comments will be accepted until 5:00 p.m. [JST], February 19, 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/sonota/20240118/20240118.htmlopen new window
January 18, 2024 Publication of the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act” for public consultation
<Summary>
The FSA published the draft "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" (hereinafter referred to as "the proposal") for public consultation.
The proposal mainly intends to provide amendments to the said Regulation for Enforcement (including the appended form) in response to requests for deregulation from the financial sector and relevant industry organizations, to allow banks, etc. to use the "reference method" in addition to the currently allowed "attachment method" for the preparation of business reports, etc. that are required to be filed with the competent authorities.
Public comments will be accepted until 12:00 p.m. (noon time) [JST], February 19, 2024.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20240118/20240118.htmlopen new window

Press Releases

Councils

January 17, 2024 "The Code of Conduct for ESG Evaluation and Data Providers"：21 ESG Evaluation and Data Providers have endorsed the "Code of Conduct" as of December 31, 2023
January 15, 2024 Publication of the agenda and handouts of the 147th meeting of the Council on Automobile Liability Insurance
<Summary>
The FSA published the agenda and handouts of the 147th meeting of the Council on Automobile Liability Insurance, which was held on January 15, 2024.
Consequent to the discussion on the results of the fiscal year 2023 premium rate assessment reported by the General Insurance Rating Organization of Japan, it was agreed that there is no need to newly revise automobile liability insurance premium rates. Also, the establishment of a new category for specified small, motorized bicycles was discussed, and it was agreed to establish the category and calculate a new standard premium rate therefor. 

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/singi/singi_zidousya/siryou/20240115.htmlopen new window

Banks

January 17, 2024 Publication of the updated "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises" and "Q&As for the 'Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises'" (provisional English titles)
<Summary>
The FSA published the updated "Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises" and "Q&As for the Guidelines for Business Revitalization, etc. of Small- and Medium-sized Enterprises'" (provisional English titles) compiled by the study group on the said guidelines. 
In light of the growing needs of small- and medium-sized enterprises (SMEs) for business revitalization support by financial institutions since the Guidelines have taken effect from April 2022, the updates to the Guidelines are mainly intended to encourage further collaboration among relevant stakeholders (debtors, creditors, professionals, etc.) in business revitalization even under normalcy, to improve and clarify operational aspects of the Guidelines based on its actual use, and to update operational rules to foster and expand the development of business revitalization practitioners/professionals who make use of the Guidelines.
In this context, the Q&As for the Guidelines were also updated, mainly by reflecting responses from the National Tax Agency to inquiries* by the said study group in regard to the said guidelines. The updated Guidelines and Q&As are available only in Japanese on the webpage of Japanese Bankers Association open new window.  
The updates to the Guidelines and the Q&As will take effect on April 1, 2024.
* The inquiries mainly pertain to tax treatments for cases involving debt waivers and so forth under corporate revitalization plans or debt repayment plans prepared based on the said guidelines.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/ginkou/20240117.htmlopen new window

Securities

January 12, 2024 Administrative Actions Against SBI SECURITIES Co., Ltd.
January 12, 2024 Administrative action against ActiveBox Corporation
<Summary>
The Kanto Local Finance Bureau took administrative action against ActiveBox Corporation, 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 report filed in response to an order issued by the Bureau, where the facts found to have been in violation of the FIEA, such as where the entity did not have a sufficient personnel structure to conduct Type II financial instruments business in an appropriate manner.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/shouken/20240112.htmlopen new window
January 12, 2024 Extension of the filing due dates of annual securities reports, internal control reports, quarterly securities reports, and semiannual securities reports in case of business impediments caused by the Noto Peninsula Earthquake in 2024
<Summary>
The FSA has announced that disaster-affected corporations may extend the filing due dates of their annual securities reports, internal control reports, quarterly securities reports, and semiannual securities reports if business impediments have been caused by the Noto Peninsula Earthquake in 2024, pursuant to the enforcement of the "Cabinet Order on the Specific Extraordinary Disaster Caused by the Noto Peninsula Earthquake in 2024 to Designate Measures to be Applied Thereto" (provisional English Order title). Further inquiries including concerns on business impediments caused by the Noto Peninsula Earthquake in 2024 are being accepted by the respective competent local finance bureaus and local finance branch bureaus. 
In this respect, a disaster-affected corporation which has been unwittingly forced to miss the statutory deadline for filing the reports due to force majeure shall not be held liable administratively or criminally for the failure of filing, if the corporation files the said reports by April 30 2024. 
In a case where a disaster-affected corporation remains unable to meet the extended deadline of April 30, 2024, the deadline can be further extended with approval from the competent local finance bureau. Similarly, if a disaster-affected corporation remains unable to prepare an extraordinary report* with an unfixed filing due date, the corporation must file the report as soon as possible after such circumstances are resolved, whereby the report will be deemed to have been filed without delay.

* "Extraordinary report" in this context means a document containing corporate details statutorily required to be disclosed in such cases as a force majeure event that has a material impact on the financial position and operating results of a corporation, pursuant to the "Financial Instruments and Exchange Act."

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/sonota/20240112/20240112.htmlopen new window

Others

January 17, 2024 Publication of the "Cabinet Office Order to Amend the Regulation for Enforcement of the Money Lending Business Act"
<Summary>
The FSA has published the "Cabinet Office Order to Amend the Regulation for Enforcement of the Money Lending Business Act." In response to the report of the Noto Peninsula Earthquake in 2024, the Order provides the following mitigation measures when financial institutions provide loans for the disaster-affected victims. 
1. to provide flexibility in loan applications for the "expenses that are found to be urgently necessary in light of socially accepted conventions" which are exempt from statutory total lending limit requirements
2. to provide flexibility in loan applications for individual business owners which are exempt from the statutory total lending limit requirements
3. to provide flexibility in loan applications for cash advances (cashing) under revolving credit loans (financing within the scope of statutory lending limits), and
4. to provide flexibility in loan applications for borrowers whose annual incomes are aggregated by including those of their spouses which are exempt from the statutory total lending limit requirements.
The Cabinet Office Order was enforced on January17, 2024.
 
Note: No public consultation was conducted, for the amendments fall under cases prescribed in the "Administrative Procedures Act," where the urgent establishment of Administrative Orders, etc. are necessary for the public interest.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/kashikin/20240117/20240117.htmlopen new window
January 17, 2024 New web portal for the information on the support systems for the victims of the disaster caused by the Noto Peninsula Earthquake in 2024 with respect to potential multiple debt problems triggered by the disaster
<Summary>
The FSA newly launched a web portal for information on the support systems for the victims of the disaster caused by the Noto Peninsula Earthquake in 2024 with respect to potential multiple debt problems triggered by the disaster. (The term "victims" in this context means either individuals or corporate entities, including small- and medium-sized enterprises). The web portal collectively gathers information provided by the national government (inclusive of METI [Ministry of Economy, Trade and Industry]), local governments, and relevant organizations mainly on the support systems regarding disaster recovery loans and the mitigation of loan repayment terms, as well as points of contact for consultations.

The original press release is available in Japanese at the following URL:
https://www.fsa.go.jp/news/r5/kashikin/20240117/20240117-2.htmlopen new window
January 15, 2024 Initiatives for Corporate Governance Reform
January 15, 2024 TSE to Publish a List of Companies That Have Disclosed Information Regarding “Action to Implement Management That Is Conscious of Cost of Capital and Stock Price”
January 12, 2024 Updated list of issuers of gift certificates in repayment procedures based on the "Payment Services Act"
January 12, 2024 Stewardship Code : 331 institutional investors have signed up to the Principles for Responsible Institutional Investors as of December 31, 2023 
January 12, 2024 Updated Fintech and Innovation page 
January 12, 2024 "Japan Fintech Week 2024" website is now officially launched

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