Publication of the draft amendments to the „Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.“ for public consultation

On 27 January 2023, the Financial Services Agency (FSA) issued a press release, informing about its proposing of draft amendments to the „Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.“ for public consultation.
The proposal is mainly aimed at providing amendments to the aforementioned Guidelines in response to recommendations made by the Financial Stability Board (FSB) and the International Organization of Securities Commission (IOSCO) in terms of the following:
1. Updating rules to require fund managers and specially permitted business for qualified institutional investors (SPBQII) to file monitoring reports on the funds they manage. This proposal is in response to a policy recommendation made in 2019 by the FSB on structural vulnerabilities arising from activities of the asset management sector, followed by a recommendation by the IOSCO on a framework for assessing the leverage of investment funds in 2020.
2. Updating rules to require Money Reserve Fund (MRF) and Money Market Fund (MMF) managers to develop contingency plans to address any vulnerabilities in their MRFs and MMFs. This proposal is in response to a policy proposal made in October 2021 by the FSB to improve the resilience of MMFs, followed by the voluntary amendments to the self-regulatory rules of Investment Trusts Association, Japan, aimed at encouraging investment managers to take appropriate measures for contingency plans stipulated in its rules, thereby improving the resilience of MMFs, etc.
Public comments will be accepted until 5:00 p.m. (JST) on 27 February 2023.
You can submit your feedback online on the E-GOV public comment website.