13 February 2008

FSA plan for strengthening the competitiveness of Japan's financial and capital markets

The FSA Japan has published the Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets.

The Plan incorporates specific measures to strengthen the competitiveness in the following four policy areas:

- Creation of vibrant markets investors can have confidence in.

A market infrastructure needs to be put in place that enhances diversity in financial services and raises customer benefits, while ensuring market fairness and transparency. The measures to be taken to achieve this objective include introducing a bill to the Diet (Japan's parliament) that will enable diversification of exchange-traded investment funds and establishment of markets in which professionals are engaged in vigorous transactions.

- Business environment that vitalises the financial services industry and promotes competition.

The FSA intends to put in place a competitive environment that can meet the needs of the times, which enables provision of diverse and high-quality services. Various measures will be taken to this end, including introduction of a bill to the Diet that will revamp the firewall regulation among banking, securities, and insurance groups, as well as broaden the scope of businesses permitted to banking and insurance groups.

- Improving the regulatory environment (better regulation).

The FSA aims to enhance the effectiveness, efficiency, and transparency of financial regulation by improving its supervisory method. This will include intensive dialogue with the industry with a view to sharing the principles for financial regulation, as well as close monitoring of market developments and effective supervisory response.

- Improving the broader environment surrounding the markets.

The measures include developing internationally competitive human resources specializing in finance, law, accounting, etc., and improving the urban infrastructure suitable for an international financial center.

Outline of the Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets

The Plan for Strengthening the Competitiveness of Japan's Financial and Capital Markets (Available in Japanese)

© Graham Bishop