On Jun. 27, JPN FSA proposed revisions re digital, security tokens.
JPN FSA proposed revisions to relevant cabinet orders and cabinet office ordinances regarding the Act to partially amend the financial instruments and exchange act, etc.
Follows JPN FSA Mar. 2023 submitted a bill for 211th Diet session, see #166160.
Proposed Revisions
Concern the duty to consider best interests of customers; review of analog regulations based on the comprehensive review plan of regulations, in light of digital principles.
Review of security token-related matters; as well as the duty to publish online the method of publicizing customer solicitation policies set out by financial product sellers.
Consultation Period
Comments shall be submitted by Jul. 27, 2024.
Oct. 2024 Response to Comment
On Oct. 30, 2024, JPN FSA issued consultation feedback after receiving 76 comments.
Mainly clarified scope and finalized revisions, which are effective Oct. 30 or Nov. 1.
FSA also stated that revisions related to Enforcement order on the act on the provision of financial services and improvement in the environment for their use would be finalized at a later date, said it send related request letters to industry associations.
The relevant orders and ordinances were published on the Official Gazette same day.
Nov. 2024 Revisions Finalized
On Nov. 20, 2024, JPN FSA issued three public comments received and its responses.
Plus, the enactment of Cabinet office ordinance on the method of publicizing solicitation policies for the sales of financial products; JPN FSA recommended financial product sellers to provide information that is easily accessible and easy to understand.
Clarified that where financial product sellers have 21 or more employees and a website for advertising products, their solicitation policy must be posted on their website.
Financial product sellers with 20 or fewer full-time employees including sales staff will be exempt from the obligation to post their solicitation policy on their website.
The revised order and the enacted ordinance will be effective from Dec. 15, 2024.
