Financial Services AgencyFSA Weekly Review No.581

April 4, 2024

What’s New on the FSA Website

Week of March 22, 2024 - March 28, 2024

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

Public Comments

March 28, 2024 Publication of the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act” and others after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" and others after public consultation.
The finalized Cabinet Office Order and others mainly provide amendments in response to requests for deregulation from the financial sector and relevant industry organizations, particularly in terms of the following:
 

- to set forth that the head office, etc. shall remain in the category of the place of business subject to the approval system, when a bank applies for the FSA to designate its business office as its head office, etc. or notifies the FSA of such designation [Amendments to the "Regulation for Enforcement of the Banking Act," etc.] 

- to set forth the documents to be attached to applications for approval and/or notifications when business offices, etc. of banks, etc. newly establish business holidays (non-business days), etc. [Amendments to the "Regulation for Enforcement of the Banking Act," etc.] 

- to provide amendments to various notifications for the establishment of business offices by simplifying fill-in requirements thereof [Amendments to "Comprehensive Guidelines for Supervision of Major Banks, etc." (including Forms and Reference Materials), etc.], and 

- to provide consequential amendments in response to the amendments to the relevant and applicable Cabinet Office Orders and Ministerial Orders, etc. [Amendments to "Comprehensive Guidelines for Supervision of Major Banks, etc." (including Forms and Reference Materials), etc.]
 

Note: As for the "Comprehensive Guidelines for Supervision of Major Banks, etc." and other relevant and applicable Guidelines, consequential amendments are to be provided in response to the draft  PDF"Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" (available only in Japanese) published on June 30, 2023. 
 
The finalized Cabinet Office Order and others were enforced on April 1, 2024.

The original press release is available in Japanese.open new window
March 27, 2024 Publication of finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others after public consultation
<Summary>
The FSA has published the finalized "Cabinet Orders and Cabinet Office Orders Pertaining to the Amendments to the Financial Instruments and Exchange Act, etc.," and others after public consultation. 
Consequential amendments were provided 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. 
The finalized Cabinet Orders and Cabinet Office Orders were enforced on April 1, 2024.

The original press release is available in Japanese.open new window
March 27, 2024 Finalization of "Revision of the Quarterly Review Standards* to be Replaced with the Interim Review Standards and Consequential Amendments to Quality Control Standards for Auditing" (provisional English title) after public consultation
<Summary>
The FSA finalized "Revision of the Quarterly Review Standards* to be Replaced with the Interim Review Standards and Consequential Amendments to Quality Control Standards for Auditing" (provisional English title) after public consultation. 
The finalized revision is based on the discussion held on the plenary meeting of the Business Accounting Council on March 12, 2024, following the public consultation.
The revision changes the name of the quarterly review standards to the interim review standards, introduces a form of conclusion regarding regulatory compliance in addition to the form of conclusion regarding appropriateness (of disclosure) stipulated in the current quarterly review standards, and clarifies the nature of the conclusion regarding special-purpose interim financial statements.
The revision took effect on March 27, 2024.

*This in response to the revision of the statutory quarterly corporate disclosure system, where the quarterly disclosure requirements under the "Financial Instruments and Exchange Act" (Quarter 1 and Quarter 3) will be abolished and integrated into quarterly earnings reports based on the Exchange Rules.

The original press release is available in Japanese.open new window
March 26, 2024 Publication of the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act” and others after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act" alongside other relevant and applicable Cabinet Office Orders after public consultation.
The finalized Cabinet Office Order mainly provides 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, and in response to the finalized Basel III framework, etc.
The finalized Cabinet Office Order and other relevant and applicable Cabinet Office Orders were enforced on March 31, 2024.

* The Cabinet Office, through its webpage for a regulatory and administrative reform hotline, broadly accepts requests and proposals from individuals, companies, organizations, etc., to review regulations and systems and to improve administrative organizations and operations. The requests pertaining to the finalized Cabinet Office Order refer to those collected at the said webpage through the first call for requests from the public in FY2023. 

The original press release is available in Japanese.open new window
March 25, 2024 Publication of the draft amendments to the regulatory notice on application by electronic data processing system and others for public consultation
<Summary>
The FSA proposed the draft amendments to the regulatory notice on application by electronic data processing system and others [hereinafter referred to as the "proposal"] for public consultation.
The proposal is line with the government policy on digitalization of administrative procedures and the means of recording documents electronically, taking into account compatibility with image reading devices such as digital cameras, which were not anticipated at the time of enactment of the said government policy. 
Public comments will be accepted until 5:00 p.m. [JST], April 24, 2024.

The original press release is available in Japanese.open new window
March 22, 2024 Publication of the finalized amendments to the "regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy" applicable to agricultural cooperatives and fishery cooperatives after public consultation
<Summary>
The FSA finalized the amendments to the "regulatory notices pertaining to Pillar 1 and Pillar 3 requirements of capital adequacy" applicable to agricultural cooperatives and fishery cooperatives 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 for measuring risks, and the highest designated parent company: March 31, 2025


*The finalized Basel III framework refers to a consolidated package of the "Basel III framework"open new window (December 2017) and the "market risk capital framework (minimum capital requirements for market risk)"open new window (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.open new window
March 22, 2024 Publication of the finalized "Cabinet Office Order on Arrangement, etc. of Relevant and Applicable Cabinet Office Orders Which Are Within the Purview of the FSA Incidental to the Enforcement of the Act Partially Amending the Basic Act on the Formation of a Digital Society to Promote the Regulatory Reform Thereof, etc." after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order on Arrangement, etc. of Relevant and Applicable Cabinet Office Orders Which Are Within the Purview of the FSA Incidental to the Enforcement of the Act Partially Amending the Basic Act on the Formation of a Digital Society to Promote the Regulatory Reform Thereof, etc." after public consultation. 
In response to the enforcement of the "Act Partially Amending the Basic Act on the Formation of a Digital Society to Promote the Regulatory Reform Thereof" (enacted on June 14, 2023), the finalized Cabinet Office Order mainly updates the regulation on posting notices stipulated in the applicable Cabinet Office Orders which fall within the purview of the FSA.

The finalized Cabinet Office Order was enforced on April 1, 2024. In addition, the relevant and applicable Comprehensive Guidelines for Supervision took effect on April 1, 2024 in this regard.

The original press release is available in Japanese.open new window

Press Releases

Policies

March 22, 2024 Updated：Initiatives by the financial industry to enhance their asset management businesses 

International 

March 25, 2024 EU-Asia Pacific Forum on Financial Regulation

Councils

March 28, 2024 Publication of the agenda and handouts of the 22nd meeting of the "Expert Panel on Sustainable Finance"
<Summary>
The FSA published the agenda and handouts of the 22nd meeting of the "Expert Panel on Sustainable Finance,"* which was held on March 28, 2024. 
In the 22nd meeting, the expert panel members engaged in a discussion mainly on the status of corporate decarbonization initiatives in Japanese regions.

*The Expert Panel is composed of business, financial, and academic experts, with observers of officials from pertinent ministries and agencies. The FSA (Strategy Development Division, Strategy Development and Management Bureau) serves as the secretariat.

The original press release is available in Japanese.open new window
March 26, 2024 Publication of the agenda and handouts of the first meeting of the "Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector" (provisional English title)
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector" (provisional English title), which was held on March 26, 2024. 
The secretariat of the expert panel (i.e. the FSA) gave a briefing on objectives of the meeting, whereupon the expert panel members engaged in a discussion mainly on matters related to fraudulent insurance claims.

The original press release is available in Japanese.open new window
March 25, 2024 Publication of the agenda and handouts of the first meeting of the "Working Group on Sustainability Disclosure (Reporting) and Assurance" (provisional English title) of the Financial System Council
<Summary>
The FSA published the agenda and handouts of the first meeting of the "Working Group on Sustainability Disclosure (Reporting) and Assurance" (provisional English title) of the Financial System Council, which was held on March 26, 2024. 
In the first meeting, the secretariat (i.e. the FSA) gave a briefing on the background to the establishment of the said Working Group and on key issues in sustainability disclosure (reporting), followed by a discussion.

The original press release is available in Japanese.open new window

Banks

March 27, 2024 Approval of the updated business adaptation plan filed by THE KYOTO CHUO SHINKIN BANK
<Summary>
The FSA approved and published the updated business adaptation plan filed by THE KYOTO CHUO SHINKIN BANK pursuant to the "Industrial Competitiveness Enhancement Act."

The original press release is available in Japanese.open new window
March 26, 2024 Publication of statistics regarding unlawful reimbursement of deposits (as of the end of December 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.open new window
March 25, 2024 Publication of the updated Business Revitalization Plan filed by SBI Shinsei Bank, Limited
<Summary>
The FSA accepted the updated Business Revitalization Plan filed by SBI Shinsei Bank, Limited* pursuant to the "Act on Emergency Measures for Early Strengthening of Financial Functions," etc.
*This trade name was formerly Shinsei Bank, Ltd., and was changed to SBI Shinsei Bank, Limited on January 4, 2023.

The original press release is available in Japanese.open new window
March 22, 2024 Publication of the implementation reports of the Business Strengthening Plans and the relevant plans filed by financial institutions (as of September 2023)
<Summary>
The FSA published the implementation reports of the Business Strengthening Plans and the relevant plans filed by financial institutions (as of September 2023) pursuant to the "Act on Special Measures for Strengthening Financial Functions."

The original press release is available in Japanese.open new window
March 22, 2024 Publication of implementation reports in regard to the "fund-grant system" filed by financial institutions (as of September 2023)
<Summary>
The FSA published five implementation reports in regard to the "fund-grant system" respectively filed by the following parties (as of September 2023), pursuant to the "Act on Special Measures for Strengthening Financial Functions": 
(1) THE FUKUHO BANK, LTD.,
(2) The Aomori Bank, Ltd. alongside THE MICHINOKU BANK, LTD.
(3) The Aichi Bank, Ltd. alongside The Chukyo Bank, Limited.
(4) The Hachijuni Bank, Ltd. alongside THE NAGANO BANK, LTD., and
(5) Habataki Shinkumi Bank.

The original press release is available in Japanese.open new window

Others

March 25, 2024 International Forum of Independent Audit Regulators published the Report on 2023 Survey of Inspection Findings
March 22, 2024 Updated list of entities that are operating financial instruments businesses without proper registration (The Kanto Local Finance Bureau)
<Summary>
The FSA and the Kanto Local Finance Bureau issued warnings to entities that are operating financial instruments businesses without proper registration. (See the updated list of EXCELforeign-based entitiesopen new window).
The list also includes the warned non-registered entities with untraceable/unidentified addresses. (Postal and/or web addresses on the list of the warned non-registered foreign-based entities reflect those shown on their respective webpages, not necessarily the addresses that could be traced and identified).

The original press release is available in Japanese.open new window
March 22, 2024 Japan Weeks 2024

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