2012年-IMF国际货币组织全球_Japan_IOSCO_Objectives_and_Principles_of_Securities_Regulation_Detailed_Assessment_of_Implementation_107页_1mb

Summary of Japan: IOSCO Objectives and Principles of Securities Regulation—Detailed Assessment of Implementation

Core Content

This document provides a detailed assessment of the implementation of the International Organization of Securities Commissions (IOSCO) objectives and principles in the Japanese securities market, conducted as part of the Financial Sector Assessment Program (FSAP) in 2011. The assessment was completed in August 2012 and outlines the current legal and regulatory framework, institutional structure, and key findings regarding compliance and effectiveness.

Main Viewpoints

• Legal and Regulatory Framework: Japan has a robust legal and regulatory framework that largely aligns with IOSCO principles. The Financial Services Agency (FSA), Securities Exchange and Surveillance Commission (SESC), and Certified Public Accounting and Auditing Oversight Board (CPAAOB) are the main regulatory bodies.
• Regulatory Independence: While there are legal features that could potentially affect the independence of the FSA (such as its budget being controlled by the Ministry of Finance), there is no evidence of day-to-day interference. The FSA has a strong accountability framework.
• Market Structure: Japan has a multi-exchange system with the Tokyo Stock Exchange (TSE) as the dominant equity market. The Osaka Stock Exchange (OSE) is the main derivatives market. A merger between TSE and OSE is expected to be completed by 2013.
• Supervision and Enforcement: The FSA has taken steps to enhance its capacity to monitor systemic and emerging risks. However, there are concerns about the effectiveness of ongoing supervision and enforcement, particularly for smaller firms and intermediaries.
• Investor Protection: The FSA and SESC have systems in place to review offering documents and periodic reports, ensuring compliance with disclosure obligations. However, there are gaps in the timely notification of insider transactions and the deterrent effect of penalties.

Key Information

Legal and Regulatory Framework

• Main Laws: The Financial Instruments Exchange Act (FIEA) and the Investment Trust and Investment Corporations Act (ITIC) form the basis of securities regulation.
• Registration Requirements: Securities activities require registration as a Financial Instruments Business Operator (FIBO), with different categories (Type I, II, IMBO, etc.) and corresponding responsibilities.
• Disclosure Obligations: Publicly listed companies and investment trusts must disclose corporate events and financial information regularly, in line with IOSCO principles.

Institutional Structure

• Regulatory Bodies:
  • FSA: Main regulatory authority responsible for policy, off-site monitoring, and enforcement.
  • SESC: Conducts on-site inspections and market surveillance.
  • CPAAOB: Oversees auditors and ensures compliance with accounting standards.
• Delegation of Authority: The FSA delegates functions to the SESC and CPAAOB, and further to local finance bureaus for monitoring and inspections.
• Self-Regulatory Organizations (SROs): Several SROs, including the TSE SRO, JSDA, and ITAJ, perform important self-regulatory functions. The JSIAA and Type II FIA are newer and have not been fully assessed.

Market Participants and Structures

• Equity Markets: Over 3,647 companies are listed across Japan’s six exchanges, with the TSE being the largest. There are 12 foreign companies listed, and the TSE plans to integrate Tokyo AIM into its structure by 2012.
• Bond Markets: Bond trading is mainly conducted in OTC markets, with the TSE listing a limited number of debt instruments.
• Collective Investment Schemes (CIS): Investment trusts manage over ¥98 trillion in assets, with the majority being publicly offered. CIS managers must register with the FSA and meet capital and organizational requirements.
• Securities Intermediaries: There are 322 Type I FIBOs, 1,293 Type II FIBOs, 1,122 Investment Advisory and Agency Businesses, and 322 IMBOs as of November 2011. The FSA has a system for consolidated supervision of large firms.

Enforcement and Supervision

• Supervision Gaps: The FSA lacks a comprehensive framework to identify and assess risks posed by individual firms, which affects the intensity of regulatory intervention.
• Inspection Coverage: The FSA’s on-site inspection program has limited coverage for smaller firms, which are more prone to conduct issues.
• Enforcement Measures: The FSA is using stronger enforcement tools, such as suspensions, in addition to traditional measures. However, the balance between different types of enforcement needs to be reviewed.
• Penalties: Administrative money penalties are not sufficient in terms of deterrent effect and the scope of applicable misconducts needs to be expanded.

Recommendations

• Strengthen Ongoing Supervision: Develop a framework to identify and assess risks, and expand inspection coverage for smaller firms.
• Enhance Enforcement Balance: Review the enforcement program to ensure a proper balance between different regulatory measures.
• Improve Penalty Framework: Ensure penalties are deterrent and expand the types of misconduct they can apply to.
• Boost FSA Governance and Resources: Strengthen the FSA’s legal independence and ensure it has sufficient resources and expertise.
• Systematic Risk Assessment: Establish a more comprehensive and systematic method for identifying and assessing risks, including the use of the Office of Securities Business Monitoring (OSBM).

Conclusion

The Japanese securities market has a strong legal and regulatory framework that aligns well with IOSCO principles. However, there are areas for improvement, particularly in supervision, enforcement, and risk assessment, to ensure that the regulatory system is both effective and robust in the face of evolving market dynamics and global financial challenges. Continued efforts are recommended to address these gaps and enhance the regulatory environment for securities markets in Japan.