The report describes the progress made in the period between July 2007 and April 2008. It describes the four pillars the initiative is based upon, and outlines five areas the work focuses on.
The report describes the progress made with regard to the FSA's efforts toward "better regulation" in the period between July 2007 and April 2008. It describes the four pillars the initiative is based upon, and outlines five areas the work focused on. The FSA plans to publish a report on the progress of the initiative biannually.
The better regulation initiative centres on four pillars:
- Optimal combination of rules-based and principles-based supervisory approaches. The FSA agreed on fourteen "Principles in the Financial Industry" in April 2008, which will constitute the cornerstones of principles-based supervision.
- Timely recognition of priority issues and effective response, in particular with regard to measures for responding to the market turmoil.
- Encouraging voluntary efforts, such as Basel II (implemented ahead of most of other countries) and the Financial Inspection Rating System of January 2008.
- Improving the transparency and predictability of regulatory actions.
The FSA has been implementing measures on the following five areas of focus:
- Enhancing dialogue with financial institutions, for example by increasing opportunities for exchange of views with the financial industry, including foreign business organizations.
- Enhancing dissemination of information, through active use of lectures, speeches, interviews, and contribution of articles. Dissemination of information in English has also been enhanced, including on the FSA website.
- Strengthening cooperation with foreign authorities, including by contribution to international debate on the subprime mortgage problem at international fora, and by strengthened multilateral and bilateral framework for cooperation.
- Enhancing research functions to promptly grasp market developments, exemplified by the establishment of the Market Analysis Office in February 2008 in light of the growing impact of global economic and market developments on Japan's financial system.
- Redoubling efforts for human resource development, including through provision of intensive staff training as well as recruitment of experts and personnel exchanges with the private sector.
Press release
Progress report
© FSA Japan
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