Clifford Chance
Opportunities for Fund Managers – Relaxed Licence Scheme [Japanese version]
10 April 2012
To strengthen the foundations of the capital markets and financial business in Japan, the Financial Instruments and Exchange Act was amended* to, among other things: (a) consolidate the disclosure regulations for rights offerings, (b) expand the scope of disclosure permitted in English, (c) expand the scope of business in which banks can engage, (d) expand the scope of permitted borrowers of commitment line agreements, (e) introduce a relaxed registration scheme for qualified investors investment management business, and (f) introduce human resources requirements for investment advisory/agency businesses. In addition, fund managers must also pay attention to the related cabinet office ordinance which was amended to (g) introduce additional notification matters for the QII Special Exemption (as defined below) to accommodate the changes brought about by the Amendment.
This briefing note looks at the latter three changes which are closely related to the fund business - introduction of (i) the relaxed registration scheme for qualified investors investment management business, (ii) human resources requirements for investment advisory/agency businesses and (iii) additional reporting matters for the QII Special Exemption.
Note:
* The Amendment was enacted by the Diet on 17 May 2011 and promulgated on 25 May 2011 and the related cabinet order and cabinet office ordinance were promulgated on 15 February 2012.
