TITLE: Japan's Financial Services Agency Opens Consultation on Financial Instruments Transaction Act Amendment Regulations
BODY:
On July 10, 2026, Japan's Financial Services Agency (FSA) launched a public consultation on draft cabinet office ordinances implementing amendments to the Financial Instruments and Exchange Act (Act No. 79 of 2023) and the Act on the Transfer of Bonds, Shares, and Other Securities (Act No. 80 of 2023). These amendments will take effect within three years of June 2023.
The proposed ordinances establish necessary provisions relating to the digitalization of administrative monetary penalty procedures under the Financial Instruments and Exchange Act and the Certified Public Accountants Act. The FSA is seeking to modernise its enforcement mechanisms by implementing digital processes for penalty proceedings, which will streamline administrative procedures and improve efficiency in financial market oversight. These amendments apply to financial instruments trading businesses, certified public accountants, and other entities subject to the FSA's administrative monetary penalty regime. The consultation focuses on two specific areas: amendments to cabinet office ordinances governing monetary penalties under Chapter 6-2 of the Financial Instruments and Exchange Act, and amendments to ordinances governing monetary penalties under the Certified Public Accountants Act.
The comment period closes on August 10, 2026, at 5:00pm Japan Standard Time. Submissions may be made by post to the FSA's Market Division, Planning and Markets Bureau, or via the e-Gov website. Respondents should include their name or organisation name, occupation or business type, contact details, and reasoned comments. The FSA will not provide individual responses to submissions. Following the consultation period, the FSA will proceed through necessary procedures before publishing and implementing the ordinances.