Publication of the finalized amendments to the „Cabinet Office Order on Disclosure of Corporate Affairs“ and others (in regard to the notification prior to the approval of listing) after public consultation

The FSA has recently concluded a public consultation and subsequently finalized amendments to the „Cabinet Office Order on Disclosure of Corporate Affairs“ and related regulations, particularly concerning the notification process preceding the approval of listing.
These amendments are primarily in response to recommendations made in the interim report of the Working Group on Corporate Disclosure (FY 2021) of the Financial System Council, which was published in June 2022. This interim report was based on findings from the „Working Group on the IPO (Initial Public Offering) Pricing Process“ by the Japan Securities Dealers Association (JSDA) in February 2022.
The JSDA’s report identified the need for improvements in the IPO pricing process and emphasized the importance of simultaneously advancing regulatory responses. It highlighted the necessity to streamline the listing schedule and proposed that a securities registration statement, referred to as a „pre-approval notification,“ be submitted to the FSA before listing approval. Additionally, it recommended that practical considerations be given to the requirements of this pre-approval notification. Consequently, the finalized amendments include revisions to the fill-in requirements for the pre-approval notification.
These amendments are scheduled to come into effect on 1 October 2023, and aim to enhance the IPO pricing process, make the listing schedule more flexible, and ensure that regulatory measures are in place to support these changes.