JPN FSA Securities Transactions Rules

Published on: Apr 16, 2025

On Apr. 11, JPN FSA proposed revisions re securities transactions.

  • JPN FSA proposed revising Cabinet office ordinance on definitions under article 2 of the financial instruments and exchange act and on restrictions on securities transactions.
  • Plus, the Ordinance on solicitation to exercise voting rights of listed shares by proxy.
  • Revisions re Article 2 of the FIEA
  • Expand the scope of members of director/employee shareholding associations to include directors/employees of an issuer's affiliated firms, so that shareholding association-based rights will be excluded from collective investment scheme interests.
  • Clarify that an issuer's subsidiaries correspond to the issuer's affiliated companies.
  • Revisions re Securities Transactions
  • Exempt short selling regulations for short selling conducted within the quantity of shares allocated through in-kind dividends of subsidiary shares, which is similar to exemptions already in place for corporate restructuring such as company splits.
  • Exclude the application of shareholding association's trading reports associated with the sale of shares less than 1 unit when each member withdraws from the association.
  • Where a decision to sell listed shares is made by an issuer's decision-making body prior to the purchase, the issuer must wait until at least one business day has passed after the public announcement of such decision before conducting the purchase.
  • Add transfers of shares between individuals and their asset management companies as minor cases not subject to disclosure requirements re decision to accumulate shares.
  • Revisions re Exercise of Voting Rights
  • Where electronic provision was taken for items to be stated in shareholder meeting reference materials, no need to include the same items in proxy reference documents.
  • When electronic provision was taken for all shareholders of an issuer re the matters that should be stated in shareholder meeting reference materials and voting form, the submission of such documents to the local finance bureau is also not required.
  • Effectiveness
  • Comments shall be submitted by May 11, 2025.
Regulators
JPN FSA
Entity Types
B/D; Corp; Inv Co
Reference
CP 4/11/2025; Ord 87 of 2023; Ord 83 of 2024; Ord 8 of 2025; FIEA;
Functions
Compliance; C-Suite; Financial; Legal; Operations; Reporting; Risk; Technology; Trade Reporting; Trading
Countries
Japan
Category
State
N/A
Products
Corporate; Equity; Fund Mgt; Securities; Short Sale; Stock Lending
Rule Type
Proposed
Regions
AP
Rule Date
Apr 11, 2025
Effective Date
May 11, 2025
Rule ID
250782
Linked to
N/A
Reg. Last Update
Apr 11, 2025
Report Section
International