Financial Services AgencyFSA Weekly Review No.588

May 31, 2024

What’s New on the FSA Website

Week of May 17, 2024 - May 23, 2024

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

Public Comments

May 17, 2024 Publication of the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act, etc." after public consultation
<Summary>
The FSA published the finalized "Cabinet Office Order to Amend the Regulation for Enforcement of the Banking Act, etc." after public consultation.
The finalized Cabinet Officer Order mainly provides amendments in response to requests for deregulation from the financial sector and relevant industry organizations, particularly in terms of the following:

- to review procedures for establishing business offices of banks, etc. [Amendments to the "Regulation for Enforcement of the Banking Act, etc."]

- to add intermediary service of credit card issuance business (cashing function) of credit card companies to incidental operations of banks, etc. [Amendments to the "Regulation for Enforcement of the Banking Act, etc."]

- to expand the scope of business of a company conducting financial services (finance-related services) that concurrently engages in general business in foreign countries [Amendments to the "Regulation for Enforcement of the Banking Act, etc., and to the "Regulation for Enforcement of the Insurance Business Act"]

- to review regulations concerning the handling of individual customer information by bank agents, etc. and measures taken by the principal bank [Amendments to the "Regulation for Enforcement of the Banking Act," and to the "Comprehensive Guidelines for Supervision of Major Banks, etc."] 

- to clarify agency and intermediary services, such as training services, consulting services, and research services, for other businesses conducted by bank subsidiaries and fellow subsidiaries as incidental services for banks, etc. [Amendments to the "Comprehensive Guidelines for Supervision of Major Banks, etc." and to the "Comprehensive Guidelines for Supervision of Insurance Companies"].


The finalized Cabinet Officer Order was enforced on May 18, 2024, alongside the finalized amendments to the relevant and applicable Comprehensive Guidelines for Supervision.

The original press release is available in Japanese.open new window
May 17, 2024 Publication of the finalized amendments to the regulatory notice on application by electronic data processing system and others after public consultation
<Summary>
The FSA finalized the amendments to the regulatory notice on application by electronic data processing system and others after public consultation.
The finalized amendments are in 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. 
The finalized amendments took effect on May 17, 2024.

The original press release is available in Japanese.open new window
May 17, 2024 Publication of the finalized amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers after public consultation
<Summary>
The FSA finalized the amendments to the "Guidelines for Administrative Processes" regarding prepaid payment instruments issuers and funds transfer service providers after public consultation. 
The finalized amendments mainly set forth the following in the Guidelines:

- Response to the revision of the regulations on posting notices, stipulated in relevant and applicable Cabinet Office Orders that are within the purview of the FSA, and

- Measures that should be taken against unregistered financial services providers (those who engage in funds transfer transactions without obtaining a license under the "Banking Act" or registration as a funds transfer service provider under the "Payment Services Act").


The finalized amendments took effect on May 17, 2024.

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

Press Releases

Publication

May 22, 2024 PDFFSA publishes English translation of monthly magazine, Access FSA No.246

Councils

May 23, 2024 Publication of the agenda and handouts of the 28th 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 28th meeting of the "Working Group on Capital Market Regulations" of the Financial System Council, which was held on May 24, 2024.
The Working Group members engaged in discussion regarding product governance initiatives taken by financial institutions, and other relevant topics.

The original press release is available in Japanese.open new window
May 23, 2024 Publication of the agenda and handouts of the third 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 third meeting of the "Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector" (provisional English title), which was held on May 24, 2024. 
The FSA issued a business improvement order to the four major non-life insurers regarding alleged cartels that were organized to prearrange corporate insurance premiums on December 26, 2023. The Expert Panel members engaged in discussion mainly in regard to issues identified in the investigation of the aforementioned alleged cartels.

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

Securities

May 17, 2024 Administrative action against Alpha Capital, Inc.
<Summary>
The Kanto Local Finance Bureau took administrative action against Alpha Capital, Inc., an investment advisory and agency 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 facts found to be in violation of the FIEA, such as where the entity failed to file mandatory business reports (i.e. "jigyo-hokokusho" in Japanese), and failed to file reports in response to the order by the Bureau.

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

Insurance

May 21, 2024 License granted to Yamap Naturance Inc. to conduct non-life insurance business
<Summary>
The FSA granted a license to Yamap Naturance Inc.* to conduct non-life insurance business pursuant to the "Insurance Business Act." 

* The said entity formally changed its trade name anew to "Yamap Nature-Insurance Inc." after it obtained the insurance business license. 


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

Others

May 22, 2024 Bank of Japan Review Foreign Currency Liquidity Risk Management at Japanese Major Banks: Efforts and Enhancement
May 17, 2024 Submission method of accompanying documents for applications, notifications, etc.
<Summary>
The FSA now accepts documents issued by a public body (e.g. official copies of resident records, etc.) as accompanying documents for applications and notifications to the FSA in a PDF (Portable Document Format) or an image data format through its electronic application and notification systems, etc., as opposed to the original (official) documents that were previously required for submission.

The original press release is available in Japanese.open new window
May 17, 2024 Publication of the main issues raised by the FSA at opinion exchange meetings with relevant associations in the financial sector
<Summary>
The FSA has published the main issues raised by the FSA at opinion exchange meetings* held with relevant associations in the financial sector in April 2024. (Available only in Japanese).

The common topic across the groups was:

- a report on the results of implementing the development of systems in terms of taking measures for AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) and a factual survey on the development of those systems.


Notable issues discussed by most but not all of the groups were:

- the continued use of the FSA's operational support integrated system (which was created to facilitate and optimize operational efficiency by integrating the FSA’s multiple systems for monitoring and on-/off-site inspections)

- the program year 2023 interim report of monitoring results pertaining to the implementation status of customer-oriented business conduct by distributors of financial instruments, such as investment trusts, and

- Japan Financial Literacy and Education Corporation (J-FLEC)

 

* To enhance the transparency of its administration and to share its awareness of issues in the financial sector in a timely manner, every month the FSA publishes the main issues raised by the FSA at opinion exchange meetings with the relevant associations** in the financial sector. Opinion exchange meetings are held with the respective associations on a regular basis.

** In April 2024, opinion exchange meetings were held with each of the following five groups: major banks, etc., the Regional Banks Association of Japan and the Second Association of Regional Banks, Trust Companies Association of Japan, the Japan Securities Dealers Association (JSDA), and Japan Financial Services Association.


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

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