June 14, 2024
Publication of the draft “Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements,” etc. for public consultation
<Summary>
The FSA proposed the draft “Cabinet Office Order to Amend the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements” (hereinafter referred to as the “proposal”) for public consultation.
The proposal is mainly intended to provide consequential amendments to the matters to be considered in handling the Regulation on Financial Statements, Guidelines for the “Regulation on Terminology, Forms and Preparation Methods of Financial Statements” and other guidelines for other relevant and applicable regulations, in response to Practical Solution No.46, the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules (available only in Japanese), published by the Accounting Standards Board of Japan (ASBJ).
Public comments will be accepted until 5:00 p.m. [JST], July 16, 2024.
The original press release is available in Japanese.
June 14, 2024
Publication of the draft “Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc.” for public consultation
<Summary>
The FSA proposed the draft “Cabinet Office Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions, etc.” (hereinafter referred to as the “proposal”) for public consultation.
The proposal intends to provide amendments to the criteria for exempting the decisions made by the business execution decision-making body of a listed company, etc., regarding the issuance of shares, etc., as stock-based compensation, from the scope of material facts under the insider trading regulation.
In particular, the criteria will be amended to allow the exemption for the said decisions in one of the following cases:
– The share dilution ratio is expected to be less than one percent.
– The total value (market value) of the shares is expected to be less than JPY 100 million.
Public comments will be accepted until 5:00 p.m. (JST), July 16, 2024.
The original press release is available in Japanese.
Press Releases
Publication
Councils
June 20, 2024
Publication of the agenda and handouts of the 29th 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 29th meeting of the “Working Group on Capital Market Regulations” of the Financial System Council, which was held on June 21, 2024.
The Working Group members engaged in discussion regarding the draft report for a summary of discussions of the meetings held (from April to June 2024) by the Working Group.
The original press release is available in Japanese.
June 17, 2024
Publication of the agenda of the 24th meeting of the “Expert Panel on Sustainable Finance”
<Summary>
The FSA published the agenda of the 24th meeting of the “Expert Panel on Sustainable Finance,”* which was held on June 17, 2024.
*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.
Securities
June 18, 2024
Administrative monetary penalty against Quadeye Trading LLC for using fraudulent means regarding stocks of Nomura Real Estate Master Fund, Inc., and five other stocks
<Summary>
On June 17, 2024, the FSA issued an order to impose an administrative monetary penalty against Quadeye Trading LLC, a high speed trader registered with the Kanto Local Finance Bureau, for using fraudulent means regarding stocks of Nomura Real Estate Master Fund, Inc., and five other stocks,* in violation of the “Financial Instruments and Exchange Act.”
* The five other stocks are: Nippon Shinyaku Co., Ltd., DISCO CORPORATION, Renesas Electronics Corporation, KOSE R.E. Co., Ltd., and Nintendo Co., Ltd.
The original press release is available in Japanese.
June 18, 2024
Administrative monetary penalty against ARDEPRO Co., Ltd. for making false statements in its quarterly securities report
<Summary>
On June 17, 2024, the FSA issued an order to impose an administrative monetary penalty against ARDEPRO Co., Ltd. for making false statements in its quarterly securities report, in violation of the “Financial Instruments and Exchange Act.”
The original press release is available in Japanese.
Insurance
Others
June 20, 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 lists of Japan-based entities and foreign-based entities).
These lists also include 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.
June 19, 2024
Establishment of telephone consultation services regarding fraudulent investments
<Summary>
The FSA’s Counseling Office for Financial Service Users has established telephone consultation services regarding fraudulent investments,* mainly to respond to inquiries and/or consultations from persons who were defrauded in or who detected activities, etc. of fraudulent investment solicitations.
* There has been an increasing number of cases of fraudulent investment solicitation related to financial products, including crypto-assets (virtual currencies) and FX (Foreign Exchange) reported, in which people are being solicited to invest in such financial products by people they meet on SNS, dating apps, etc., or by people who impersonate or use the names of celebrities through fake online-advertisements, and are having trouble withdrawing their funds, etc. as a result of trading with the foreign business operators they have been introduced to.
The original press release is available in Japanese.
June 14, 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 May 2024. (Available only in Japanese).
Common topics across the groups were:
– publication of the outline of proceedings, etc. of an opinion exchange meeting with disabilities associations and financial institution-related associations (including bank associations of deposit taking financial institutions)
– shortening of the maturity length of bills (negotiable instruments), [e.g. sight bills, usance bills, bulk factoring, electronically recorded monetary claims, etc.] in response to a request from the Japan Fair Trade Commission and the Small and Medium Enterprise Agency
– tentative responses that have been taken so far and are to be taken in terms of AML (Anti-Money Laundering) measures
– Japan Financial Literacy and Education Corporation (J-FLEC), and
– Japan Weeks 2024.
Notable issues discussed by most but not all groups were:
– the AML (Anti-Money Laundering)/CFT (Countering Financing Terrorism)/CPF (Countering Proliferation Financing) Action Plan (FY2024-2026) published by the FSA (currently available only in Japanese)
– International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP)
* 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 May 2024, opinion exchange meetings were held with each of the following four groups: major banks, etc.; the Regional Banks Association of Japan and the Second Association of Regional Banks; The National Association of Shinkin Banks; and the Labor banks sector.
The original press release is available in Japanese.
June 14, 2024
Administrative action against CoinBest K.K.
<Summary>
The Kanto Local Finance Bureau took administrative action against CoinBest K.K. (hereinafter referred to as “the entity”), a crypto-asset exchange service provider, ordering the suspension of the entity’s business operations in regard to services associated with IEO (Initial Exchange Offering) in which a crypto asset exchange service provider sells crypto-assets issued by an issuer on behalf of the issuer, from June 14, 2024, to December 13, 2024, and the improvement of its business operations, pursuant to the “Payment Services Act” (PSA).
The administrative action was mainly based on the results from an on-site inspection conducted by the said Bureau, where the entity’s business management system, internal control system (including sales system of new crypto-assets), internal audit system, and AML (Anti-Money Laundering)/CFT (Countering Financing of Terrorism) risk management system were ascertained to have material issues, constituting a violation of the PSA.
The original press release is available in Japanese.
June 14, 2024
Warning issued to LBank Exchange that is operating crypto-asset (virtual currency) exchange business without proper registration
<Summary>
The FSA issued a warning to LBank Exchange that is operating crypto-asset (virtual currency) exchange business without proper registration in violation of the “Payment Services Act.”
