White & Case: “FSA’s Proposal to Prevent the Recurrence of the AIJ Scandal and the Results of Second Survey”

On September 4, 2012, the Financial Services Agency of Japan (“FSA”) published its proposal of measures to prevent the recurrence of the AIJ scandal while providing the opportunity to the public to provide their opinions regarding such measures by October 4, 2012. In addition to the foregoing, the FSA also published the interim results of the second survey that the FSA commenced this April regarding certain discretionary investment management companies (“DIMs”) selected by the FSA in accordance with the first survey.

FSA’s Proposal to Prevent the Recurrence of the AIJ Scandal

The FSA’s proposal consists of four parts: (1) establishing a system by which domestic trust banks can properly confirm the consistency of the fund NAV information provided by the administrator, the external auditor and the DIM; (2) improving the support system to assist clients (pension funds) to become aware of issues with respect to their investments; (3) revising the penalties and fines for certain illegal acts; and (4) reforming regulations governing the activities of DIMs generally.

White and Case, Tokyo Financial Services Group

Download the memo (click at lower right)

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