Financial Services Agency

Capital Adequacy

Recession Fears Prompt Japan to Stress Test Major Financial Firms

By Editors | 22/10/2019

The BOJ and FSA will jointly coordinate stress tests on Japan’s three G-SIBs and four D-SIBs to assess how capital and liquidity could be affected if stocks fell and the yen spiked.

Resolution & Recovery

Japan, EU to Cooperate on Cross-border Resolution Planning

By Editors | 17/10/2019

Through an exchange of letters, Japan’s FSA and the EU’s SRB have agreed to cooperate to plan for and conduct orderly cross-border resolutions of banks.

Reporting & Disclosures

Japan Hosts First-ever TCFD Summit

By Editors | 09/10/2019

Speaking at the Summit, BOE governor Mark Carney lauded Japan’s support for the TCFD, but said more needs to be done globally to enhance climate-related financial disclosures.

Tokenisation

Japan Brokers Form New Body to Develop Rules for STOs

By Editors | 07/10/2019

The new association was formed by securities firms SBI, Nomura, Daiwa, Kabu.com, Monex and Rakuten and will seek FSA approval for status as a self-regulatory organisation.

Market Abuse

US SEC Settles Charges Against Nissan, Former CEO

By Editors | 24/09/2019

As settlement for underreporting CEO compensation, Nissan agreed to pay $15mn, while ex-CEO Carlos Ghosn will pay $1mn and get a 10-year officer and director bar.

Structural Regulation

ISDA Issues Guidance on Executing Trades on Recognised Venues

By Editors | 23/09/2019

The guides describe how cross-border trading will work following the CFTC-MAS, CFTC-FSA and EC-MAS agreements on mutual recognition of derivatives trading venues.

Conduct, Culture & Accountability

Japan Brokerage Sanctioned for Giving a Client Preferential Treatment

By Editors | 12/09/2019

A former baseball star and member of Japan’s Parliament was allowed to continue trading derivatives despite persistent margin shortfalls over about 9 months.

Credit Risk

Japan Regulators Seek Data on Financial Firms’ Risky Investments

By Editors | 10/09/2019

The BOJ and FSA are collecting data on financial firms’ holdings of collateralised loan obligations and leveraged loans to understand the risks they present.

Conduct, Culture & Accountability

Japan FSA to Revise Standards For Auditors of Listed Companies

By Editors | 05/09/2019

The revised standards will require auditors to disclose the reasons for issuing a qualified opinion in financial statements starting from March 2020.