Others,Comprehensive Guidelines for Supervision of Financial Service Intermediaries

The FSA has published the English version of guidelines for conducting on-site inspections of financial institutions to eliminate regulatory gray zones and ensure a transparent and fair financial environment. Financial service intermediaries are vital in meeting diverse customer needs and gaining public trust. To achieve this, they should offer original, customer-centric services and strengthen governance with a focus on customer protection and risk management.
The guidelines facilitate supervision by providing comprehensive reference material for supervisory staff. They cover the entire inspection process, including presenting inspection orders, conducting on-site inspections, and completing the inspection procedures. The FSA has also set up a system for receiving and responding to inquiries from financial institutions, with the inquiry and response disclosed publicly on the FSA website.
Additionally, the guidelines establish procedures for requesting data in advance of on-site inspections. The inspection team must make efficient use of existing data and limit new data requests to the minimum necessary. Procedures for completing on-site inspections include confirming details of dialogues with the financial institution and identifying challenges observed during the inspection.
The FSA’s supervisory policies complement the guidelines and encompass theme-specific approaches, annual policies, and recommendations to industry associations. During the supervision process, clear explanations are provided to financial service intermediaries regarding the different purposes of these policies.
The guidelines aim to ensure sound management while respecting the voluntary efforts of financial service intermediaries. They cater to various types of intermediaries, considering their unique challenges. Deviations from the guidelines‘ literal definition may be acceptable as long as they do not compromise public interest and user protection, recognizing the individual circumstances of each intermediary.
The comprehensive and cross-sectoral structure of the guidelines minimizes overlap and addresses common points of attention, specific supervisory evaluation points, and administrative procedures. Furthermore, the guidelines include specific points of attention unique to each business operation type, encompassing deposit, insurance, securities, and loan intermediary business operations.
Effective supervision requires careful review of the relevant sections based on the specific type of financial service intermediary under oversight. By adhering to these guidelines and policies, the FSA aims to promote healthy innovations, protect customers, and maintain a competitive and reliable financial sector.