The FSA published the finalized version of the „Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business, etc.“ following a period of public consultation. This regulatory development encompasses amendments deemed necessary to facilitate compliance for special financial instruments business operators falling under Type I (with total assets surpassing one trillion yen). The amendments specifically address the adherence to various consolidation regulations outlined in the IFRS and other relevant and applicable standards.
Moreover, the finalized Cabinet Office Order stipulates that Type I financial instruments business operators and registered financial institutions are exempt from submitting a „Report on Affiliated Companies“ if they do not have any affiliated companies that necessitate reporting. This provision streamlines reporting requirements for entities falling under these categories and aligns with the broader regulatory framework.
The effective date for the enforcement of the finalized Cabinet Office Order is set for 31 March 2024. This timeline establishes a clear deadline for affected entities to adapt their practices and operations in accordance with the amended regulations. As financial markets continue to evolve and global standards influence regulatory frameworks, these adjustments signify a proactive approach by regulatory authorities to ensure compliance and transparency in the financial instruments business sector.
Of note, the original press release in only available in Japanese.