What is investment management business?
Updated: July 2025, 10
"Investment management business" is a type of financial instruments business, and refers to "the management of money or other assets as investments in securities or rights related to derivative transactions, based on investment decisions based on an analysis of the values of financial instruments, etc."
Simply put“License to invest and manage assets in securities, etc.”.
The investment management business is classified into the following four types depending on the management activities performed.
① Investment corporation asset management business
Operations that involve concluding a trust agreement with a registered investment corporation, investing in securities or derivative transactions, and managing money and other assets.
② Discretionary investment business
Business that concludes discretionary investment contracts with investors, invests in securities or derivative transactions, and manages money and other assets.
③ Investment trust management business
Business of investing in securities or derivative transactions and managing money and other assets as part of the management of trust assets of investment trusts.
④ Fund management (self-management) business
Investment and management of funds contributed by holders of certain rights, such as collective investment scheme interests, primarily in securities or derivative transactions
For example, if you want to manage the fund's assets in securities etc. under the discretion of a fund, you will need to be classified as a ``discretionary investment business'' within the investment management industry.
Main application documents
The main application documents when applying for investment management business registration are as follows.
| Registration application form (pages 1 to 11) |
| business procedure |
| Rules, etc. cited in the business method manual |
| A set of other internal regulations (related to financial instruments trading operations) |
| Organization |
| A document that describes the business execution system such as personnel composition |
| Registration applicant's oath |
| The following documents regarding officers and important employees: ①Resume ②Written oath ③Residence card ④Identification card |
| Document stating the status of specific parties |
| Articles of Incorporation |
| A set of recent financial statements |
| A document stating the amount of net assets |
| Document stating the trade name, etc. of major shareholders |
| Non-applicable documents (for real estate-related specific investment management business) |
| Registration license tax (payment certificate) |
| Overview/Attachment |
| Scheme diagram |
| Income and expenditure forecast (for the next 3 years) |
| Office seating map |
| Other items that the official in charge has instructed you to submit. |
*The internal regulations that should be created differ depending on the content of the financial instruments transaction operations.
Generally, we create about 20 to 30 types of internal regulations.
Examples: Organizational regulations, division of duties regulations, authority regulations, investment management regulations, risk management regulations, compliance regulations,
Customer management regulations, conflict of interest management regulations, complaint handling regulations, internal audit regulations, executive and employee service regulations, etc.
At our company, we will propose a set of internal regulations that are suitable for your company after hearing the details of the financial products transaction business you conduct.
If you have any problems with registering as an investment management business or creating internal regulations, please contact us.
Difference between “Investment Management Business” and “Investment Advisory/Agency Business”
The players that appear when investors invest and manage their assets include the "investment management business" and the "investment advisory/agency business (investment advisory business)."
The decisive difference between the two licenses is“Who makes the final investment decision?”.
In the case of investment advisory and agency business (investment advisory business), although investment advice is provided, the final investment decision is made by the investor himself/herself.
On the other hand, in the case of investment management businesses, the responsibility including final investment decisions is greater, and registration requirements and conduct regulations are stricter than in investment advisory and agency businesses. .
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