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06 June 2008

FSA Japan statement on amendments to Financial Instruments and Exchange Act


Japanese parliament passed the Bill for Amendment of the Financial Instruments and Exchange Act which puts into force a number of measures incorporated in the ‘Plan for Strengthening the Competitiveness’.

Japanese parliament passed the Bill for Amendment of the Financial Instruments and Exchange Act which puts into force a number of measures incorporated in the ‘Plan for Strengthening the Competitiveness’ of Japan's Financial and Capital Markets. The measures are intended to ensure that Japan's financial and capital markets appropriately meet the various needs of investors and fund-raisers, both domestic and foreign, making the markets more attractive to their participants.

 

The policy package puts together the measures necessary to raise the competitiveness of Japan's markets. Some of the main items of the amendment include:

- The Creation of new exchange markets exclusively for professional investors that are exempt from current disclosure requirements, while securities exchanges can set their rules regarding provision of information on their own initiatives.

- Diversification of exchange-traded funds (ETFs), by introducing ETFs investing in commodity futures.

- Review of the system of administrative monetary penalties, including raising the amount of penalties imposed and expanding the coverage of violations subject to these penalties.

- Revamp of the firewall regulations among securities firms, banks, and insurance firms.

- Broadening of the scope of businesses permitted to banking and/or insurance groups

 

Press release

Attachment 1 : Overview of the bill for amendment of the Financial Instruments and Exchange Act, etc

Attachment 2 : Outline of the Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets



© FSA Japan


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