meta_id 3165360

On May 19, 2026, Japan's Financial Services Agency (FSA) published amendments to the Cabinet Office Ordinance concerning electronic settlement means traders and related regulations. The FSA conducted a public consultation on the proposed amendments from February 3, 2026 to March 5, 2026, receiving 16 comments from stakeholders. The amendments introduce two key changes to Japan's electronic settlement means framework. First, the FSA expands the scope of foreign trust beneficiary rights that qualify as electronic settlement means by establishing equivalence criteria with Japan's electronic settlement means legal system. This expansion allows foreign trusts established under foreign laws that meet equivalence standards to be designated as electronic settlement means. The amendments also clarify that electronic settlement means traders must assess foreign electronic settlement means based on equivalence with Japan's legal framework. Second, the FSA amends provisions to exclude certain foreign trust beneficiary rights from classification as securities under the Financial Instruments and Exchange Act, provided they meet the equivalence criteria. The FSA considered all comments received during the consultation period and published its responses alongside the final amendments. Comments unrelated to the proposed amendments will inform future financial administration policy. The Cabinet Office Ordinance amendments and accompanying operational guidelines take effect on June 1, 2026. Electronic settlement means traders and financial institutions handling foreign electronic settlement means should review the updated operational guidelines to ensure compliance with the new equivalence standards and expanded scope of qualifying foreign trust beneficiary rights.