JBA compiled its opinion on draft cabinet/ministerial ordinances concerning the Financial Instruments and Exchange Law on May 21 and submitted it to the Financial Services Agency on the same day.
The JBA opinion consists of 49 requests and 275 questions for confirmation. The following are the principal requests.
- So-called school bonds are designated as securities to be regulated by the Financial Instruments and Exchange Law. However, syndicated loans to schools by financial institutions should not be regarded as quasi-securities.
- The selling, buying or conducting of other transactions involving the securities of corporations on its own accounts, based on obtained information thereof is prohibited. However, credit default swaps, etc. should be exempted from this prohibition lest these transactions be endangered.
- Transactions of financial products based on undisclosed information which has been obtained through the business of the registering financial institution and such are prohibited. However, the scope of the undisclosed information should be limited since a total ban may disrupt business.
- A certain amount of time is required to develop a system for producing legally required business records. Therefore, a transfer period of about one-year should be prepared to avoid confusion in regular operations.