Japan’s Financial Services Agency (FSA) will be rolling out an initiative aimed at attracting more asset management firms into its shores as the country makes its way toward becoming a global financial center in Asia.
In an advisory by the Japan Information and Culture Center (JICC), the FSA and local finance bureaus (LFB) said they will be establishing a “financial market entry office” in January next year.
The office is set to handle pre-application consultation, registration and supervision for new entrants. It is a single point of contact and with all communications available in English, the advisory read.
The FSA is set to amend relevant regulations to allow documents written in English. At the same, the agency and LFBs will have to improve their capacities.
The proposed amendment on the policies was published on November 6; public consultations were held until December 7, it said. The amendments will take effect in January next year.
The JICC noted that the types of business eligible to apply in English are investment management, investment advisory and agency and other categories mentioned under Japan’s Financial Instruments and Exchange Act.
“These measures are expected to accelerate the registration process for newly entering asset management firms and a part of initiatives [in relation to, for example, taxation, human capital, business environment and administrative services in English]to promote Japan’s financial market and to attract more foreign financial business operators and professionals to Japan,” the JICC said.
“We believe strengthening Japan’s functions as a global financial center will help global financial markets become more resilient against crises such as natural disasters through geographical diversification of business headquarters and therefore the FSA is making its utmost effort to improve the business environment in Japan for foreign asset managers,” it added.
In a speech, Japanese Prime Minister Suga Yoshihide said that the measure is seen creating new employment and business opportunities, which can boost economic growth in the country.
Suga has said before the Diet session ended last week they would “decide upon economic measures that will open up a new path for economic growth by maintaining employment, continuing businesses and restoring the economy in order to protect people’s lives and livelihoods.”
“What Japan needs is a source of economic growth in the post-coronavirus world,” the Prime Minister said in a news conference last December 4. “Going green and going digital will be the major pillar for this.”