Added provisions to the public notice that a type I financial instruments business proposing to disclose non-public information of an issuing company to itself or a third party based on the latter's consent, does not violate article 2 item 5(a) and (b).
A Type I business having taken measures to ensure that it will not provide non-public information to other entities, will not use its shares/voting rights when proposing to an issuer disclosure of non-public information does not breach article 2 item 5(a) and (b).
JPN GVT also posted Q&As re amendments and the list of Japanese listed firms subject to advance notification of inward direct investment under the Foreign exchange act.
On Feb. 9, JPN GVT proposed revising foreign investment screening.
JPN GVT proposed revisions to Foreign exchange and foreign trade act (FEFTA)-related cabinet orders and public notices, including Cabinet order on inward direct investment.
Overview of Revisions
Classify foreign investors with obligations to cooperate with foreign governments in collecting information re Japan's national security based on agreements as type-A.
Plus, entities controlled by such foreign investors through 50% or greater ownership of voting shares or through appointment of 1/3 or more of the entities' board members.
Prior notification is mandatory for investments by type-A in all designated industries.
Classify foreign investors whose decision is controlled by type-A investors as type-B.
Or whose main office is located in a country other than the country of incorporation and activities are affected by local laws/regulations re information collection activities.
For type-B, prior notification is mandatory for investments in specific core businesses; extra standards to existing exemption apply to investments in other core industries.
Lastly, classify companies which are designated as specified essential infrastructure service providers under the Economic security promotion act and conduct business activities in the core sectors under FEFTA as designated core business entities.
Designated core business entities will be posted on the Ministry of Finance's website.
Consultation End
Comments shall be submitted by Mar. 11, 2025.
Apr. 1, 2025 Finalized Cabinet Order
On Apr. 1, 2025, JPN GVT said relevant Cabinet order was approved by the Cabinet.
Revisions mainly concern specific core businesses, specific foreign investors, those who are equivalent to specific foreign investors, exemptions, prior notice with assessments.
The Cabinet order and related ministerial order and notices are expected to be published on Apr. 4, and they are expected to be effective from May 19, 2025.
Added provisions to the public notice that a type I financial instruments business proposing to disclose non-public information of an issuing company to itself or a third party based on the latter's consent, does not violate article 2 item 5(a) and (b).
A Type I business having taken measures to ensure that it will not provide non-public information to other entities, will not use its shares/voting rights when proposing to an issuer disclosure of non-public information does not breach article 2 item 5(a) and (b).
JPN GVT also posted Q&As re amendments and the list of Japanese listed firms subject to advance notification of inward direct investment under the Foreign exchange act.
Regulators
JPN GVT
Entity Types
Corp; Inv Co
Reference
FS, FAQ, PR, 4/4/2025; Dec, PR, 4/1/2025; CP 395122504, Trsl, 2/9/2025; Ord 331 of 2024; Law 43 of 2022; FEFTA;
