On Jun. 27, JPN FSA proposed revisions re M&A consulting functions.
JPN FSA proposed revisions to Comprehensive guidelines for supervision of small, medium-sized, regional financial institutions, and of cooperative financial institutions.
Guidelines for supervision of major banks, and credit business of fishery cooperatives.
Follows JPN FSA, GVT Nov. 2023 issued a request for business support, see #192628.
Also follows JPN METI Mar. 2024 issued PMI practical tools, guidebook, see #206942.
Proposed Revisions
Clarify the focus of financial institutions in implementing their consulting functions for businesses, as they are expected to become more proactive in supporting M&A.
Clarify the framework that financial institutions should develop, as it has been pointed out that management guarantees are an obstacle to M&A and business succession.
Consultation Period
Comments shall be submitted by Jul. 31, 2024.
In Jun. 2024, JPN FSA issued report on regional banks' client support, see #217533.
Aug. 2024 Response to Comments
On Aug. 30, 2024, JPN FSA issued 14 public comments received and its responses.
For guarantee agreements concluded before Mar. 2023, financial institutions are advised to provide explanations to guarantors promptly, while executing loans.
Where a new guarantee agreement is concluded with a new CEO in place of a former CEO, the Guidelines on management guarantees and special provisions of Guidelines on management guarantees that focus on business succession may be applied.
The revised supervisory guidelines will be implemented from Oct. 1, 2024.
Plus, JPN FSA requested public, private financial institutions to promote M&A support, including handling of management guarantees during M&A and business succession.
Understanding special provisions of Guidelines on management guarantees focused on business succession; reviewing approach to Guidelines on management guarantees.
Improving a system using case studies; handling loans with credit guarantees.
