Japan FSA is pushing the globalization of administration, together with paperwork in English
The Financial Services Agency stands ready to encourage administrative globalization to attract more foreign investors, sources said.
In order to raise the profile of the Japanese financial and capital markets, the FSA will, among other things, enable the submission of approval and registration applications in English and accelerate the processing time.
The measures will be included in the FSA’s forthcoming financial management guidelines for the year beginning July.
The guidelines, which the FSA publishes each year, explain its guidelines for promoting and overseeing financial institutions and markets.
This year’s guidelines, which will be the first since FSA Commissioner Ryozo Himino took office last month, are essentially intended to follow previous financial management guidelines while reflecting the mindset of Himino, the FSA’s deputy minister for international affairs, so the sources said Wednesday.
Although Japan has relaxed financial regulations, the procedures related to administrative services at the FSA are conducted in Japanese, which is a stumbling block for large institutional investors, banks and securities firms in English-speaking countries and regions wishing to enter Japanese markets.
Alluding to mounting tensions in Hong Kong, the sources say the forthcoming guidelines will state that Japanese markets can help hedge international risks at a time when geopolitical and other risks are mounting.
The guidelines will show the agency’s commitment to taking steps, including those related to taxation, to persuade foreign investors and financial institutions to choose Japanese markets, the sources said.
As for the coronavirus, the agency will look at how financial institutions are helping companies finance and operate. It will review the size of the banks’ operations while relaxing the regulations they need to play a role in revitalizing the regional economy, the sources said.
Also prompted by the pandemic, the FSA will review the financial industry’s longstanding practice of relying on Hanko (personal seals), paper documents, and personal procedures.
The agency will also work to develop efficient financial processing systems like the Zengin Data Telecommunications System, an interbank money transfer system that has long had high commissions.
In addition, the FSA will help promote conversations between companies and investors about digital transformation or reforming systems through digital technologies.
The FSA will also reform itself by promoting online financial management and strengthening its ability to properly grasp the state of the financial industry, develop guidelines and analyze data.
In a time of misinformation and too much information, Quality journalism is more important than ever.
By subscribing you can help us get the story right.