On Mar. 28, 2025, JPN FSA issued 42 public comments received and its responses.
Clarified that investment management businesses must set up their own compliance department as before, unless they outsource all investment management-related business as per the Supervisory guidelines for financial instrument business operators.
Executives/employees who are able to properly supervise investment management business entrusted to investment management business contractors, must understand such business and be capable of giving proper instructions to contractors.
An investment management business' compliance department can concurrently serve as the supervisor of investment management operations when the investment management business entrusts investment management operations to a contractor.
The cabinet order, ordinance, supervisory guidelines will be valid from May 1, 2025.
On Jan. 17, JPN FSA proposed an order re investment management.
JPN FSA proposed a cabinet order as per the implementation of the Act amending financial instruments and exchange act and act on investment trusts and corporations.
In addition, issued a regulatory impact analysis (RIA) report to analyze expected costs, benefits, and other impacts of measures and regulations, prior to their introduction.
Follows JPN FSA Mar. 2024 submitted revisions re FIEA and trusts, see #204716.
Overview of Proposed Cabinet Order
Lower capital and net asset requirements from JPY 50mn to JPY 10mn for investment management business that do not receive deposits of money from customers.
Revamp regulations on investment management-related consignment businesses, investment management businesses, special brokerage of unlisted securities.
Regulatory Impact Analysis
A review will be conducted within five years of the implementation of the revisions; if necessary, required measures will be taken according to the results of such review.
JPN FSA will conduct a comprehensive assessment of the supervisory response status re the regulations to be relaxed, verify the costs, effects, and indirect impacts.
Consultation Period
Comments shall be submitted by Feb. 16, 2025.
Mar. 2025 Public Comments
On Mar. 28, 2025, JPN FSA issued 42 public comments received and its responses.
Clarified that investment management businesses must set up their own compliance department as before, unless they outsource all investment management-related business as per the Supervisory guidelines for financial instrument business operators.
Executives/employees who are able to properly supervise investment management business entrusted to investment management business contractors, must understand such business and be capable of giving proper instructions to contractors.
An investment management business' compliance department can concurrently serve as the supervisor of investment management operations when the investment management business entrusts investment management operations to a contractor.
The cabinet order, ordinance, supervisory guidelines will be valid from May 1, 2025.
Regulators
JPN FSA
Entity Types
B/D; Bank; Fiduciary; Inv Co
Reference
RF, FS, 3/28/2025; CP, Rp, PR, 1/17/2025; Law 79 of 2023; Law 32 of 2024; FIEA;
