• On December 2023, 12, the government formulated the "Plan to Realize an Asset Management Nation" with the following pillars in order to reform the asset management industry and asset ownership, which are responsible for managing household financial assets.
  
  　① Reform of the asset management industry ② Reform of asset ownership
  　③ Supply of growth capital and diversification of investment targets ④ Substantialization of stewardship activities
  　⑤Strengthening external information dissemination and communication

• The government has previously stated that ``cash deposits, which account for more than half of Japan's household financial assets, will be directed toward investment, and the benefits of increased corporate value will be returned to households, leading to further investment and consumption.'' In order to realize a ``virtuous cycle,'' we have implemented the ``Plan to Double Asset Income (November 2022)'' and ``Action Program to Substantiate Corporate Governance Reform (April 11).'' Ta. Specifically, we are promoting various initiatives such as the fundamental expansion of NISA and the enhancement of financial and economic education, and we plan to continue promoting these initiatives in the future.

• On the other hand, as the remaining piece of the investment chain, it is necessary to reform the asset management industry and asset ownership, which are responsible for the management of household financial assets, etc., in addition to the existing efforts, so we have formulated the Plan to Realize an Asset Management Nation. . The Plan to Realize an Asset Management Nation specifically stipulates the following initiatives, and plans to confirm the progress of each by around June 2024.
  

(Source: From the Financial Services Agency's "Asset Management Nation")

(reference)

·Financial Services Agency“About an asset management nation”
·Cabinet Secretariat“Plan to Realize an Asset Management Nation”
·Financial Services Agency“Plan to Realize an Asset Management Nation (Summary)”
-Financial Services Council “Market System Working Group”/“Task Force on Asset Management” Report と Overview

■ Specific initiatives based on the “Plan to Realize an Asset Management Nation” and their impact　　

The Plan to Realize an Asset Management Nation lists specific measures for each of the five pillars, as shown below.
Let's take a look at the specific measures, including the impact on existing financial instruments business operators.

(Source: From the Financial Services Agency's "Asset Management Nation")

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■Impact on major financial groups
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• In major financial groups that play a major role in asset management, we are developing and securing operational systems (including affiliated asset management companies and sales companies) that take into account the best interests of customers, as well as management personnel to improve management capabilities. There is a need to formulate and publish a plan to improve governance and strengthen the system.

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■Impact on asset management companies, etc.
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• In order to support asset management companies in properly structuring and managing products, ensuring transparency, etc., we will focus on asset management company product governance based on the "Principles for Customer-Oriented Business Operations," including disclosure of the names of asset managers. Our policy is to add descriptions and work to realize (thoroughly) this.
  
  
• By the summer of 2024, we will formulate common principles related to investment, governance, and risk management (Asset Owner Principles) for a wide range of asset owners, including public pensions, mutual aid associations, corporate pensions, insurance companies, and university funds. At the same time, regarding corporate pensions, with a view to improving their operational capabilities, we will ``revise the guidelines to promote periodic evaluation and review of investment management contractors for defined benefit corporate pensions (DB)'' and ``revise the guidelines for promoting the regular evaluation and review of management companies for defined benefit corporate pensions (DB)'' and ``revise the guidelines for corporate defined contribution pension plans (DB)''. Measures such as "visualization of information related to designated investment methods and composition of investment products, etc." in DC) are planned.
  
  
• In order to promote the supply of funds to venture companies, measures such as ``formulation of principles for VC,'' ``promotion of fair value evaluation of unlisted stocks,'' and ``relaxation of regulations regarding investment-type crowdfunding'' are planned.
  
  
• Amendments to the Self-Regulatory Rules of the Investment Trusts Association of Japan, which allow for the "incorporation of unlisted stocks into investment trusts" and the "incorporation of unlisted foreign investment trusts that engage in alternative investments, etc. into domestically domiciled publicly offered investment trusts," etc. The goal is to diversify investment targets, including alternative investments and sustainable investments.
  
  
• In addition, the spread of single-party accounting for investment trust NAVs and other deregulation measures, which will be described in "Impact on new entrants to the asset management industry" below, are also expected to have an impact on existing asset management companies. .

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■Impact on new entrants to the asset management industry
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• The heavy burden of establishing systems for middle and back-office operations has been pointed out as one of the reasons why new investment managers are slow to enter the market. Therefore, it is planned to improve the environment for the spread of single-party accounting in response to the ``double counting problem related to the NAV of investment trusts''.
  

• In order to encourage new entry, a program (Japanese version of EMP) will be formulated to facilitate the supply of funds to emerging asset managers through public-private collaboration, and financial institutions will be requested to proactively utilize emerging asset managers. We also plan to provide a list (entry list) of emerging asset managers. Deregulation measures are also included, such as ``outsourcing middle and back office operations to external contractors that ensure appropriate operational quality'' and ``specializing in fund management functions by entrusting all investment instruction authority.'' .

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■Other noteworthy measures
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1. “Establishment of a special financial and asset management zone”

• The Financial Services Agency and ambitious local governments will work together with related ministries and agencies to promote the sophistication and competitiveness of financial and asset management services in specific regions, etc. Establishment is planned. At the end of 2023, the Financial Services Agency will announce the outline of the "Special Financial and Asset Management Zone," invite interested local governments, and plan to formulate and publish the special zone package by the summer of 2024.

2. Other measures

• As part of our efforts to promote business operators, we plan to expand our central point of contact, including a financial start-up support network and a branch establishment support office to support entry from overseas.
  
  
• In order to enhance the attractiveness of the Japanese market, we work with TSE to follow up on efforts by companies to formulate, disclose, and implement plans. We also plan to promote substantial engagement efforts by institutional investors, including consideration of reviewing systems such as the large-volume ownership reporting system.
  
  
• We plan to launch an asset management forum in collaboration with domestic and foreign asset management companies, related businesses, investors, etc., and to establish a preparatory committee within 2023. Furthermore, through dialogue with local governments, investors, etc., we plan to exchange opinions on measures to become an asset management nation and consider deepening the measures.

■ Expectations for the future, etc.　　

• Since the June 2023 cabinet decision “Basic Policy 6” stated the goal of “realizing an asset management nation,” various organizations such as national and local governments, industry groups, etc. have been considering issues and concrete measures to realize this goal. Measures are being decided and preparations are being made.
  
  It has been decided that the new NISA system will be drastically expanded and made permanent, and various measures to follow are steadily progressing. In fact, among the financial license consultations we handle, the number of consultations that are in line with these national policies is increasing, and we are experiencing a wave of major change.
  
  
• In the future, various policies and principles, including laws and supervisory guidelines, will be formulated, and each time it will be necessary to review internal systems, management systems, regulations, policies, etc., including for existing businesses (mainly investment management companies). There is a possibility that a survey will be conducted to inquire about the status of response to various revisions, etc., and it is expected that responses to such regulations will occur to a certain extent.
  
  On the other hand, although regulatory revisions (including legal revisions) have been relatively frequent in the financial industry, the contents included in the latest "Plan to Realize an Asset Management Nation" are based on a more fundamental system. There are many elements that will lead to revisions, and this could be a great opportunity not only for new entrants but also for existing businesses. For example, you should actively consider using this as a new opportunity to expand your business, such as reconsidering entering the investment management business that you had given up on due to concerns about management costs.
  
  In particular, Tokyo has been taking measures to attract foreign financial companies (providing various subsidies, establishing FinCity.Tokyo, etc.) in order to "establish its position as an international financial city". We are promoting a variety of measures and initiatives, including measures to develop asset managers and asset managers (creating a Tokyo version of the EMP fund, holding a Tokyo independent business dojo, etc.). With the recent creation of a special financial and asset management zone as a tailwind, we expect more changes and results than ever before.
  
  
• As someone who has been involved in financial licensing practices for many years, I have high expectations for the on-site response (new financial instruments business registration practices, etc.) to realize these policies.
  
  While the government is promoting new entry from Japan and abroad, including new investment management companies, in the field of license registration, issues such as ``lengthening of the period required for registration/differences in response depending on jurisdiction and officer'' are being faced. There is a difference in temperature. It is a major premise that the business applying for the application should respond to the registration requirements and other requests in the supervisory guidelines, etc., and improve the level of document preparation, etc., and the administrative personnel responsible for responding to and accepting such requests should promote understanding. I feel that it is also extremely important to develop a system for early registration.

Above

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