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Clifford Chance

Clifford Chance

Briefings

Recent and potential changes to the Japanese Insider Trading Regulations

26 April 2013

As part of the amendments to the Financial Instruments and Exchange Act (FIEA) promulgated on 12 September last year (the Amendment) revisions were made to the provisions of the FIEA regarding insider trading and the related monetary penalty (kachoukin) system (the Insider Trader Regulations). The enforcement date of the Amendment will occur sometime before 12 September 2013 and will be specified by Cabinet Office Ordinance.

Following the Amendment, the "Working Group on the Insider Trading Regulations", a working group of the Financial System Council, published a report titled "Development of Systems concerning the Insider Trading Regulations based on Recent Violations and Financial and Corporate Practices" (the 2012 Report). In response to the 2012 Report, on 16 April 2013, a bill to further amend the FIEA (the 2013 Draft Bill) was submitted to the Diet.

In this Client Briefing we provide an outline of the Amendment focusing on the upcoming changes to the Insider Trading Regulations. We also highlight potential changes to the Insider Trading Regulations recommended in the 2012 Report and proposed by the 2013 Draft Bill.

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