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FSA Weekly Review No.573 - February 8, 2024
What’s New on the FSA Website
Week of January 26, 2024 - February 1, 2024
This page contains the latest in events, developments, and updates to the FSA website.
Press Conferences
Public Comments
| February 1, 2024 | Publication of the draft "Cabinet Office Order to Amend the Cabinet Office Order on Definitions Under Article 2 of the Financial Instruments and Exchange Act" and others for public consultation <Summary> The FSA proposed the draft "Cabinet Office Order to Amend the Cabinet Office Order on Definitions Under Article 2 of the Financial Instruments and Exchange Act" and others (hereinafter collectively referred to as the "proposal") for public consultation. The proposal is intended to provide necessary amendments to the said Cabinet Office Order to make the tokenized membership rights of a limited liability company, etc. subject to the same regulations as the ordinary (regular) membership rights of a limited liability company, etc. in certain cases. Public comments will be accepted until 5:00 p.m. (JST), March 4, 2024. The original press release is available in Japanese.  |
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| January 31, 2024 | Publication of the finalized amendments to the "regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy" applicable to shinkumi banks and the federation of shinkumi banks, and to labor banks and the federation of labor banks after public consultation <Summary> The FSA finalized the amendments to the "regulatory notices pertaining to the Pillar 1 and Pillar 3 requirements of capital adequacy" applicable to shinkumi banks and the federation of shinkumi banks, and to labor banks and the federation of labor banks after public consultation. The finalized amendments mainly provide necessary amendments to the regulatory notices in response to the finalized Basel III framework.* The implementation dates of the regulatory notices pertaining to the finalized Basel III framework are scheduled as follows:
- Internationally active financial institutions and non-internationally active financial institutions that use internal model-based approaches for measuring risks, except for the highest designated parent company: March 31, 2024
- Non-internationally active financial institutions that do not use internal model-based approaches for measuring risks, and the highest designated parent company: March 31, 2025 - Financial institutions that desire an early implementation on or after March 31, 2023, may do so by submitting a notification to the FSA. *The finalized Basel III framework refers to a consolidated package of the "Basel III framework" (December 2017) and the "market risk capital framework (minimum capital requirements for market risk)" (January 2019). The finalized amendments to the regulatory notices pertaining to the finalized Basel III framework have been promulgated by category of financial institutions. The original press release is available in Japanese. |
| January 31, 2024 | Publication of the finalized amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" alongside the draft amendments to other relevant and applicable comprehensive guidelines after public consultation <Summary> The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Small- and Medium-Sized and Regional Financial Institutions" alongside the amendments to other relevant and applicable comprehensive guidelines* after public consultation. Socioeconomic activities are beginning to normalize following the downgrade of category classification of COVID-19 Infection to Class V Infectious Disease (equivalent to seasonal flu) under the "Infectious Disease Act" in May 2023. In response to a concern that an inability to repay the virtually interest-free unsecured loans extended by private financial institutions (FIs) amid the COVID-19 crisis can cause failures of corporate borrowers, the finalized amendments encourage FIs to further extend tailored business support to corporate borrowers in terms of management improvement and business revitalization according to the actual state of their businesses, not limited to financial (cash management) support. The finalized amendments will take effect on April 1, 2024. *Other relevant and applicable guidelines are as follows: - Comprehensive Guidelines for Supervision of Major Banks, etc. - Comprehensive Guidelines for Supervision of Cooperative Financial Institutions (provisional English title), and - Comprehensive Guidelines for Supervision of Fisheries Cooperatives Engaging in Credit Business (provisional English title). The original press release is available in Japanese. |
| January 31, 2024 | Publication of the finalized "Cabinet Order and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, and Other Acts" after public consultation <Summary> The FSA has published the finalized "Cabinet Order and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, and Other Acts" after public consultation. The finalized Cabinet Order and Cabinet Office Orders mainly provide consequential amendments to the relevant and applicable cabinet orders, cabinet office orders, and others, in response to the partial enforcement of the "Act Partially Amending the Financial Instruments and Exchange Act and Other Acts" (Act No. 79 of 2023), which was enacted on November 20, 2023. In particular, the finalized Cabinet Order and Cabinet Office Orders mainly provide amendments in regard to the following:
(1) the development of provisions concerning the establishment of the new public organization to accelerate financial and economic education, and
(2) the development of provisions concerning accounting documents of investment corporations.
The finalized Cabinet Order and Cabinet Office Orders were enforced on February 1, 2024.
The original press release is available in Japanese. |
| January 31, 2024 | Publication of the draft amendments to the regulatory notice designating financial institutions pursuant to the provisions under Article 17 of the "Act on Management of Deposit and Saving Accounts by Use of Individual Numbers Based on the Intention of Depositors" for public consultation <Summary> The FSA proposed the draft amendments to the regulatory notice designating financial institutions pursuant to the provisions under Article 17 of the "Act on Management of Deposit and Saving Accounts by Use of Individual Numbers Based on the Intention of Depositors" (hereinafter referred to as "the proposal") for public consultation. The proposal is intended to designate the persons listed in each item of Article 2, paragraph (1) of the "Deposit Insurance Act" (Act No. 34 of 1971) and agricultural or fishery cooperatives set forth in Article 2, paragraph (1) of the "Agricultural and Fishery Cooperatives Savings Insurance Act" (Act No. 53 of 1973) as financial institutions designated by a competent administrative authority set forth in Article 17 of the "Act on Management of Deposit and Saving Accounts by Use of Individual Numbers Based on the Intention of Depositors." Public comments will be accepted until 5:00 p.m. [JST], March 1, 2024. The original press release is available in Japanese. |
| January 26, 2024 | Publication of the draft "Cabinet Office Order to Amend the Cabinet Office Order on Crypto-Asset Exchange Service Providers " for public consultation <Summary> The FSA proposed the draft "Cabinet Office Order to Amend the Cabinet Office Order on Crypto-Asset Exchange Service Providers" (hereinafter referred to as the "proposal") for public consultation. The proposal is aimed at requiring crypto-asset exchange service providers to provide information on crypto-assets with transfer restrictions to a certified association for payment service providers and to make such information publicly available. Public comments will be accepted until 12:00 a.m. (midnight) [JST], February 26, 2024. The original press release is available in Japanese. |
| January 26, 2024 | Publication of the Partial Amendment to the Designation of a country or region under Articles 17-2 and 17-3 of the Order for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds <Summary> Japan has imposed notification obligations (i.e. travel rule) on Crypto asset Exchange Service Providers and Electronic Payment Instrument Exchange Service Providers (hereinafter collectively referred to as “VASPs”) to submit information on originators and beneficiaries at the time of transfer of crypto-assets (“VAs”)/electronic payment instruments (i.e. stablecoins, “SCs”) to make it possible to track the transaction routes of VAs/SCs. Given the ineffectiveness of the regulation where relevant requirements in the legal system of the counterparty country or region (i.e.jurisdiction) is not in place, Japan has limited the scope of the travel rule to transfers to foreign VASPs located in jurisdictions that have regulations equivalent to the travel rule requirements in Japan. In light of the implementation status of travel rules in each jurisdiction, Japan adds eight jurisdictions to the scope of the requirements (see  the Attachment for details).Information on the Travel Rule requirements in Japan is also available here. The deadline for submission of comments is 6:00 p.m. on February 25, 2024. The original press release is available in Japanese. |
Press Releases
Policies
| January 26, 2024 | Publication of the budget for each policy measure <Summary> The FSA published the budget for each policy measure for FY2024 to link the FY2024 initial budget with policy evaluation. The original press release is available in Japanese. |
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Councils
| January 30, 2024 | Publication of the Report by the Working Group on Tender Offer Rule and Large Shareholding Reporting Rule of the Financial System Council |
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| January 26, 2024 | Publication of the agenda and handouts of the jointly held meeting: the 26th meeting of the "Working Group on Capital Market Regulations" (provisional English title) of the Financial System Council and of the sixth meeting of the "Customer-Oriented Business Conduct Task Force" (provisional English title) of the said Council <Summary> The FSA published the agenda and handouts of the 26th meeting of the "Working Group on Capital Market Regulations" of the Financial System Council, and of the sixth meeting of the "Customer-Oriented Business Conduct Task Force" of the said Council (provisional English titles), which were jointly held on January 26, 2024. The secretariat (the FSA) gave a briefing on the (draft) basic framework for supporting households’ stable asset building and on Japan Financial Literacy and Education Corporation, followed by a discussion among the Working Group members and the Task Force members. The original press release is available in Japanese. |
Banks
| January 31, 2024 | Publication of statistics regarding unlawful reimbursement of deposits (as of the end of September 2023) <Summary> The FSA published statistics regarding unlawful reimbursement of deposits caused by counterfeit and stolen cash cards, stolen deposit books, unlawful Internet banking activities and linked services. The statistics include details of incidents and compensation made by financial institutions based on reports from the financial institutions. The original press release is available in Japanese. |
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| January 31, 2024 | Publication of a statistical report on financing by major banks, etc. and regional banks for enterprises utilizing the "Guidelines for Personal Guarantee Provided by Business Owners" <Summary> The FSA published a statistical report on financing by major banks, etc. and regional banks for enterprises utilizing the "Guidelines for Personal Guarantee Provided by Business Owners." The report reflects the period between April 1 and September 30, 2023. (The report is regularly published to further promote the utilization of the Guidelines). The original press release is available in Japanese. |
| January 31, 2024 | Publication of "Reference Casebook of Financial Institutions' Debt-Workout Practices Taken to Avoid Business Owners' (Guarantors') Personal Bankruptcies Based on the Guidelines for Personal Guarantee Provided by Business Owners" (provisional English titles) <Summary> The FSA has compiled and published "Reference Casebook of Financial Institutions' Debt-Workout Practices Taken to Avoid Business Owners' (Guarantors') Personal Bankruptcies Based on the Guidelines for Personal Guarantee Provided by Business Owners" (provisional English title) [available only in Japanese].Note: The reference case book is based on materials filed by financial institutions, where the evaluations for the initiatives therein reflect the views of the financial institutions that prepared the materials, and do not represent the views of the FSA. The original press release is available in Japanese. |
| January 31, 2024 | Overview of modifications to lending conditions by financial institutions <Summary> The FSA published an overview of modifications to lending conditions made by financial institutions for the period from March 10, 2020 to December 31, 2023. * The majority of the data reflects the data until December 31, 2023, whereas the data of cooperative financial institutions reflects the data until September 30, 2023. The original press release is available in Japanese. |
Securities
| January 26, 2024 | Administrative penalty charge against an individual (non-insider/retail investor) for committing insider trading regarding stocks of Ateam Inc., by using information received from an employee of a contract negotiator with Ateam Inc. <Summary> On January 25, 2024, 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 Ateam Inc., in violation of the "Financial Instruments and Exchange Act," by using information received from an employee of a contract negotiator with Ateam Inc. The original press release is available in Japanese. |
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Others
| January 31, 2024 | Updated list of issuers of gift certificates in repayment procedures based on the “Payment Services Act” |
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| January 31, 2024 | License for funds transfer transaction analysis service providers granted to Bank Business Factory Co., Ltd. <Summary> The FSA granted Bank Business Factory Co., Ltd. a license for funds transfer transaction analysis service providers that conduct transaction monitoring, etc. commissioned by multiple financial institutions, etc., pursuant to the amended "Payment Services Act," which was enacted in June 2022 and enforced in June 2023. This is the second time that the FSA has granted a license to a funds transfer transaction analysis service provider since the approval system for funds transfer transaction analysis service providers was introduced under the said amended Act. The original press release is available in Japanese. |
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