{
  "title": "Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds",
  "publication": "IMF Staff Country Reports, May 13, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/05/10/japan-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-548810",
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  "summary": "This technical note reviews the functioning and effectiveness of the regulation, supervision, and systemic risk monitoring of investment funds in Japan.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- This technical note reviews the functioning and effectiveness of the regulation, supervision, and systemic risk monitoring of investment funds in Japan.\n- Focus areas: valuation, segregation and safekeeping of fund assets, liquidity risk management, and redemption of fund units.\n- Publication date: May 13, 2024.\n- Pages: 37\n- Volume: 2024\n- Issue: 114\n- Series: Country Report No. 2024/114\n- DOI: https://doi.org/10.5089/9798400276347.002\n- Stock No: 1JPNEA2024006\n- ISBN: 9798400276347\n- ISSN: 1934-7685"
    },
    {
      "heading": "Key findings",
      "content": "- Investment Management Business Operators that are part of major financial groups dominate the industry.\n- The majority of assets under management are invested in equities via securities investment trusts.\n- The regulatory framework has been recently enhanced with relation to liquidity risk management.\n- The Financial Services Agency (FSA) has increased its data collection efforts and launched a number of targeted initiatives to gain better insight into the industry.\n- The FSA identifies certain practices that require more attention, such as liquidity risk management."
    },
    {
      "heading": "Regulatory and supervisory developments",
      "content": "- Authorities have recently implemented a new supervisory approach that relies on an enhanced offsite monitoring of firms.\n- The regulatory framework enhancements specifically relate to liquidity risk management."
    },
    {
      "heading": "Industry structure and exposures",
      "content": "- Dominance by Investment Management Business Operators that are part of major financial groups.\n- Concentration of assets under management in equities through securities investment trusts."
    },
    {
      "heading": "Data, monitoring, and supervisory practice",
      "content": "- The FSA has increased data collection efforts.\n- The FSA has launched targeted initiatives to obtain better industry insights, particularly on practices the FSA determines require more attention.\n- The new supervisory approach emphasizes enhanced offsite monitoring of firms."
    },
    {
      "heading": "Policy recommendations and supervisory priorities",
      "content": "- Authorities should ensure a broader coverage of their onsite inspection program while maintaining their offsite enhancement focus.\n- Continued attention to liquidity risk management practices is warranted given recent regulatory enhancements and supervisory focus.\n\nSource: Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds, May 13, 2024 — International Monetary Fund (DOI: https://doi.org/10.5089/9798400276347.002).\n\n---\n\n Content in this bundle\n\n- 1jpnea2024006\n  - 1jpnea2024006 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1jpnea2024006 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: May 13, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400276347.002",
    "This technical note reviews the functioning and effectiveness of the regulation, supervision, and systemic risk monitoring of investment funds in Japan.",
    "Focus areas: valuation, segregation and safekeeping of fund assets, liquidity risk management, and redemption of fund units.",
    "Publication date: May 13, 2024.",
    "Pages: 37",
    "Volume: 2024",
    "Issue: 114",
    "Series: Country Report No. 2024/114",
    "DOI: https://doi.org/10.5089/9798400276347.002",
    "Stock No: 1JPNEA2024006",
    "ISBN: 9798400276347",
    "ISSN: 1934-7685",
    "Investment Management Business Operators that are part of major financial groups dominate the industry.",
    "The majority of assets under management are invested in equities via securities investment trusts.",
    "The regulatory framework has been recently enhanced with relation to liquidity risk management.",
    "The Financial Services Agency (FSA) has increased its data collection efforts and launched a number of targeted initiatives to gain better insight into the industry.",
    "The FSA identifies certain practices that require more attention, such as liquidity risk management.",
    "Authorities have recently implemented a new supervisory approach that relies on an enhanced offsite monitoring of firms.",
    "The regulatory framework enhancements specifically relate to liquidity risk management.",
    "Dominance by Investment Management Business Operators that are part of major financial groups.",
    "Concentration of assets under management in equities through securities investment trusts.",
    "The FSA has increased data collection efforts.",
    "The FSA has launched targeted initiatives to obtain better industry insights, particularly on practices the FSA determines require more attention.",
    "The new supervisory approach emphasizes enhanced offsite monitoring of firms.",
    "Authorities should ensure a broader coverage of their onsite inspection program while maintaining their offsite enhancement focus.",
    "Continued attention to liquidity risk management practices is warranted given recent regulatory enhancements and supervisory focus.",
    "**1jpnea2024006**"
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