◆ Invigorating financial and capital markets◆ Promoting asset-building through investment

JSDA's Major Work Plan for 2017-2018（July 3, 2017）

Contributing to individuals’ medium- and long-term asset building

Raising financial literacy

1. Promoting financial and economic education• Tackling the challenges associated with revision of the school
curriculum guideline• Conducting activities taking into consideration the asset-building
supporting system such as NISA and iDeCo• Enriching contents targeting youngsters and women
2. Fostering understanding of needs and the importance of investment
3. Conducting public relations to prevent scams involving fake sales ofshares or corporate bonds

1. Working toward smooth launch of Installment- type NISA andpopularizing and promoting NISA and Junior NISA
2. Perpetuating and expanding NISA
3. Improving and popularizing defined contribution pension plans(including iDeCo)
4. Facilitating intergenerational transfer of risk assets
5. Supporting moves to integrated taxation on financial income

Strengthening financial and capital markets’
functions and competitiveness1. Establishing Tokyo’s status as a global
financial center
2. Shortening the settlement cycle of JGB’s,stocks, etc.
3. Improving the environment toward expanding
and diversifying the corporate bond market
4. Developing an off-exchange trading systemand expanding the use of unlisted stock markets
5. Formulating domestic rules to implement Asia
Region Funds Passport
6. Promoting basic studies on financial and capitalmarkets• Facilitating intelligence sharing about
FinTech• Promoting interaction with academic
researchers and market stakeholders

Enhancing global outreach and cooperation

Improving intermediaries’ functions and credibility

Investors(individuals)Intermediaries(Members)

Market(Infrastructure)

1. Actively conducting overseas public relations on theattractiveness and potential of Japanese markets
2. Enhancing cooperation and collaboration with relevant
overseas organizations
3. Responding to global regulatory reform
4. Expanding the provision of information in English

Overseas

JSDA’sOperations

1. Fostering customer-oriented business practices
2. Studying and researching member firms’ businessmanagement
3. Exercising proper self-regulatory functions• Conducting agile and effective inspections of memberfirms• Making continuous efforts for preventing insider trading• Excluding anti-social forces from capital markets
4. Supporting member firms’ preparation for institutionalchanges• Encouraging firm establishment of the Social Security
and Tax Number System and its wider use• Appropriately addressing requirements under CRS(Common Reporting Standard formulated by OEDC)
and FATCA (Foreign Account Tax Compliance Act inthe United States)
5.Adopting measures and frameworks for preventing
troubles in the use of financial services
6. Tackling social responsibilities as the securities industry

Improving JSDA’s operations

1. Actively distributing information about issues tackled by the securities industry
2. Developing and strengthening business continuity planning （BCP）andcybersecurity measures
3. Enhancing communication with local stakeholders
4. Reviewing and improving organizational structure and operations• Investigating office relocation• Developing qualified human resources through strategic recruitment and training• Improving staff’s work-life balanceJSDA’s Major Work Plans for
2017-2018- Invigorating financial and capital markets- Promoting asset-building through investment

July 3, 2017

© Japan Securities Dealers Association. All Rights Reserved.

Contributing to individuals’ medium- and long-term asset building
1. Working toward smooth launch of Installment-type NISA and popularizing and promoting
NISA and Junior NISA

Investors(individuals)

Assist member firms to smoothly launch Installment-type NISA to be introduced from January 2018. Concurrently,
encourage NISA account holders to inform their financial institutions of their individual numbers under the Social
Security and Tax Number System, as well as conduct PR and review the operations of NISA (including workplace NISA),Junior NISA and Installment-type NISA aiming to popularize and promote these schemes.
2. Perpetuating and expanding NISATo encourage people’s asset building through self-reliant efforts, work on the parties concerned toward
perpetuating and expanding NISA systems (including NISA, Junior NISA and Installment-type NISA).

3. Improving and popularizing defined contribution pension plans (including iDeCo)
Aiming to popularize the defined contribution pension plans (including iDeCo), examine the challenges for
improving their systems and operations, and work on the parties concerned.

4. Facilitating intergenerational transfer of risk assets
With the aim of facilitating intergenerational transfer of risk assets, conduct researches and studies including
surveying the impact of taxation on asset building, review the valuation in inheritance tax, and work on theparties concerned.

5. Supporting moves to integrated taxation on financial income
From the viewpoint of broadening choices for investors and allowing them to make flexible investments foravoiding risk, work on the parties concerned for furthering moves to integrated taxation on financial income.
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Raising financial literacy

Investors(individuals)

1. Promoting financial and economic education• Tackling the challenges associated with revision of the school curriculum guideline

Along with the revision of the school curriculum guideline, work on and provide information to the parties
concerned aiming to expand financial and economic education in schools.

• Conducting activities taking into consideration the asset-building support systems such as NISA and iDeCo
Promote activities such as dispatching lecturers and holding seminars for inexperienced and novice investors in
response to the spread of asset-building support systems such as NISA and iDeCo.

• Enriching contents targeting youngsters and women

Enrich web contents and other sources, and distribute practical information through SNS in order to stimulateinterest in and foster understanding of securities investment among youngsters and women whose holding ratio ofsecurities is low.

2. Fostering understanding of needs and the importance of investment
Consider measures to promote awareness of needs and the importance of investment among a wide range of people
including those who are not interested in investment.

3. Conducting public relations to prevent scams involving fake sales of stocks or corporate bonds
Carry out public street campaigns in major cities nationwide in collaboration with the police, member firms, regional
finance bureaus and consumer agencies to warn of scams involving disguised sales of stocks or corporate bonds.
2Strengthening financial and capital markets’ functions and competitivenessMarket(infrastructure)

1. Establishing Tokyo’s status as a global financial center
Toward implementing the recommendations listed in the reports of “The Council for Tokyo Global Financial Center
Promotional Activities” and “The Working Group on Asset Management” put together by JSDA, discuss with theparties concerned and move measures forward.

2. Shortening the settlement cycle of JGBs, stocks, etc.
Realize smooth transition to the T+1 settlement cycle for JGBs and T+2 for stocks, etc. by the established target dates(JGBs: May 1, 2018, Stocks, etc.: at the earliest possible date in 2019).

3. Improving the environment toward expanding and diversifying the corporate bond market
Continue to examine and review the reporting and publishing systems for information on corporate bond trading.
Also review statistics and seek optimal methods for bond management based on market stakeholders’ opinions
toward increasing trade volume in the primary market and diversifying issuers of bonds, including those with low
credit ratings.

4. Developing an off-exchange trading system and expanding the use of unlisted stock markets
Regarding margin transactions on PTSs, support discussions among the parties concerned and consider
development of the necessary framework. Concurrently, improve the trading halt mechanism in off-exchange
markets including PTSs. Also monitor and conduct PR on equity-type crowdfunding and shareholders’ community
system to achieve increased and appropriate use of those systems.
3Strengthening financial and capital markets’ functions and competitivenessMarket(infrastructure)

5. Formulating domestic rules to implement Asia Region Funds Passport
Take necessary steps including reviewing self-regulatory rules in light of amendments to laws with respect to Asia
Region Funds Passport by the agreed deadline (end of 2017) to establish domestic rules in each participating
economy.

6. Promoting basic studies on financial and capital markets• Facilitating intelligence sharing about FinTech
Continue to widely collect information on and analyze the current status of Fintech, and share those deliverables withmember firms running the Survey Group for Research on the Securities Industry and FinTech in collaboration with theJapan Securities Research Institute (JSRI).

• Promoting interaction with academic researchers and market stakeholders
Through management of the JSDA Capital Market Forum and the Visiting Fellowship System, nurture young scholars,promote interaction between academic researchers and market experts, as well as support academic studies.

4Improving intermediaries’ functions and credibilityIntermediaries(members)

1. Fostering customer-oriented business practices
Assist member firms in establishing practices in accordance with “Principles for Customer-Oriented Business Conduct”
formulated by the Financial Services Agency.

2. Studying and researching member firms’ business management
Study and research measures for streamlining member firms’ business as well as their revenue bases in light of thetrends in financial and capital markets and securities business environment.

3. Exercising proper self-regulatory functions• Conducting agile and effective inspections of member firms
Continue to conduct agile and effective inspections of member firms according to their business model, asset
profiles and other factors in order to verify compliance with laws and self-regulatory rules and check their internal
administrative framework.

• Making continuous efforts for preventing insider trading
Continue to collaborate with market infrastructures encouraging listed companies to participate in the Japan Insider
Registration & Identification Support System (J-IRISS), which aims to prevent unintended insider trading throughchecking of registered executive officers and employees of listed companies.
• Excluding anti-social forces from capital markets
Endeavor to thoroughly eliminate anti-social forces from capital markets by utilizing the “anti-social forces
identification system”.
5Improving intermediaries’ functions and credibility

Intermediaries(members)

4. Supporting member firms’ preparation for institutional changes• Encouraging firm establishment of the Social Security and Tax Number System and its wider use
Promote understanding of the Social Security and Tax Number System and encourage the private sector’s wider
use of the system. Also explore measures to encourage customers to provide financial institutions with theirindividual numbers.

• Appropriately addressing requirements under CRS (Common Reporting Standard formulated byOECD) and FATCA (Foreign Account Tax Compliance Act in the United States)
Encourage member firms to establish internal systems toward smooth implementation of the CRS. Concurrently,
support member firms’ trouble-free adaptation to the FATCA disseminating guidance published by the USauthorities.

5. Adopting measures and frameworks for preventing troubles in the use of financial services
Through surveying and analyzing troubles associated with the use of financial services, consider effective
measures and frameworks to prevent such troubles and take necessary steps.

6. Tackling social responsibilities as the securities industry
Consider the industry’s contribution to the Sustainable Development Goals (SDGs: adopted by the United Nationsin January 2016) supported by the Japanese Government.
6Enhancing global outreach and cooperation
Overseas

1. Actively conducting overseas public relations on the attractiveness andpotential of the Japanese markets
In order to further raise the global presence of the Japanese financial and capital markets, actively conduct PR
activities by holding overseas events to update the current situation and steps being taken in the markets.

2. Enhancing cooperation and collaboration with relevant overseas organizations
In order to provide member firms with information about overseas market trends and tackle common global
issues, actively exchange information in a number of international forums such as the Asia Securities Forum(ASF), International Council of Securities Associations (ICSA) and International Forum for Investor Education(IFIE) as well as through contacts with other overseas organizations/entities. Concurrently, enhance technicalassistance to related organizations in emerging economies by tapping into the Japanese markets’ expertise andexperience.

3. Responding to global regulatory reform
Actively take part in discussions in the International Organization of Securities Commissions (IOSCO) and otherinternational forums as well as appropriately respond to and collect information about global regulatory reforms
pertaining to financial and capital markets in collaboration with related domestic and international organizations.

4. Expanding the provision of information in English
Provide more information in English regarding JSDA’s public documents as well as boards and other consultativebodies.
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Improving JSDA’s operations

JSDA’soperations

1. Actively distributing information about issues tackled by the securities industry
Actively disseminate information on the industry’s activities and efforts to maintain and increase the fairness andsoundness of the financial and capital markets as well as social contributions through the JSDA website and othermedia. Also raise awareness of Investment Day.

2. Developing and strengthening business contingency planning (BCP) and cybersecurity measures
Under environmental changes assuming crises, reexamine key operations and business contingency planning(BCP) and conduct drills to ensure the effectiveness of BCP. Concurrently, in order to properly cope with cyberattacks, enhance cyber resilience against the recent surge in targeted email attacks.

3. Enhancing communication with local stakeholders
Through wide-ranging opinion exchanges with local stakeholders in addition to member firms and market stakeholders,
precisely assess the business trends of member firms and changes in market environment and optimally utilize suchassessments for strategic consideration and operation.

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Improving JSDA’s operations

JSDA’soperations

4. Reviewing and improving organizational structure and operations• Investigating office relocation
For enhancing the security of the head office, business continuity and usability, consider office relocation.

• Developing qualified human resources through strategic recruitment and training
Develop human resources who can contribute to international affairs and interactions as well as securities businessby sending staff to overseas postgraduate schools. Also actively recruit female staff.

• Improving staff’s work-life balance
In order for each staff to fully demonstrate their capacity and continue to work with peace of mind, take steps tostrike a balance between work and private life.

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