Financial Services Agency

AboutFinancial Services Agency (FSA)
FSA's thePolicies"Finance "regulation
is like blood
the threehumanbody—anappropriate
funds ofenhancestheFinancialand circulatingsupervisioninhave
major
policy objectives:to supply
ensure ofstability
the financial
economypeople'ssystem;to andenhanceuser lives.
protection and user convenience; and to establish fair and transparent markets.
The
Financial
Services(FSA)
in financial
These policy objectives have Agency
been sharedfor aengages
long time among
the authorities of many countries around theregulation
with
the
aim
of
enhancingnational
welfareworld without essential changes. However, financial situations throughare constantly changing, as represented bysustainablecorporateand economic
growthofandstableasset
innovationof financial
technologies
and globalization
financialmarkets.
building,etc.,byachievingabalancebetween
The FSA faces a major policy challenge to adapt the methods of financial regulation and supervision to these(1)stability
financialsystemchanges,
andoftotheenhancetheirquality.and demonstration of financial
intermediation functions,(2) user protection and user convenience, andStrategy
Development
andManagement Bureau(3) market
fairness/transparency
and market
vigor
even amid the rapid changes in the financial environment.
The functions of the Strategy Development and Management Bureau are largely divided into the following
three.

Acting as the FSA's control tower
The
Role of the FSA
The Bureau makes overall coordination of matters concerning the entire FSA, such as strategic policy planning
amongofdepartments
within the
FSA. Fromthe viewpointof the FSA's
The and
FSAcommunicationis responsibleandfor coordination
ensuring stability
Japan’s financial
system,protectionof depositors,
insurance
operation of activities based on the PDCA cycle, the Bureau collectively summarizes and publishes the results ofpolicyholders and securities investors, and smooth finance through such measures as planning and policymaking
the FSAʼs policy in the previous program year and the strategic priorities for the current program year. It also
concerning
the financial system, inspection and supervision of private sector financial institutions, and surveillance
engages in the reform of the FSA in order to constantly enhance the quality of the FSAʼs policy.
of securities transactions. The FSA thereby plays extremely important roles for the sound development of thea central role in financial diplomacy
nationalPlaying
economy.
In order to deepen international collaboration in the financial sector, the Bureau contributes to discussions on

Act for international
Establishmentof theFinancialandServices
Agency(Extract)
financial
regulations
works tostrengthen
the network and cooperation with overseas authorities.
(Missions)
Determining hidden risks in the financial system
Article 3
The Bureau monitors the financial risks, stability, and other aspects of the overall financial system by(1) The Financial Services Agency has a mission to secure the stability of financial functions in Japanand protect
conducting inspections as well as creating databases and analyzing data. It also conducts cross-sectoraldepositors,
policyholders, securities investors, and any equivalent persons, and facilitating financing.
monitoring of issues common to financial institutions, such as anti-money laundering measures and cyber(2) Beyond
whatis specified
in the preceding
paragraph,the supervises
Financial Services
Agencyhasasacrypto
missionto assistsecurity measures.
In addition,
the Bureau
monitors and
FinTech firms,
such
asset
with
affairsoftheCabinetconcerning
specific
importantpoliciesoftheCabinetrelatingtothemissionexchange service providers and funds transfer service providers.
referred to in that paragraph.
(3) The Financial Services Agency is to assist the Cabinet Secretariat in carrying out the mission referred to in thepreceding paragraph.
4, etc. of the Act for Establishment
Affairs
handledthe FSA( Article)
Policy andMarkets by
Bureauof the Financial Services Agency
andapolicy
makingof financial
systemssystem and◆ Planning
Building
stableand vigorous
financialandsupervisionofprivatesector◆ Inspection
developing efficient and fair financialfinancial
marketsinstitutions, including banks, insurance companies,
and financial
instrumentbusiness
operators,
as wellparticipants,
includingexchanges
The Policy and Markets Bureau mainly engages
in as
the market
designingand planningof finance-related
laws,
of rulesfor trading in markets◆ Establishment
regulations, andsystems.
Specifically,
Bureauaccounting
sets rules tostandards
be observed
financial
institutions,etc. throughestablishment,of thebusiness
andbyothers
concerning
corporatefinance◆ Establishment
amendment,
andabolitionoffinance-related
laws
andregulations
such
as
the
BankingActandthe Financial◆ Supervision of certified public accountants (CPAs) and auditing firms
Instruments
andExchange
Act.
It
also
works
to
build
a
stableandvigorous
financialsystemanddevelopfinancial◆ Participation in activities of international organizations and bilateral and multilateral fora on efficientand fair financial markets so as to enable people to invest assets with a sense of security and companies toissuesto develop internationally consistent policysmoothly procure funds.
◆ Surveillance of compliance of rules in markets
In designing and planning laws, regulations, and systems, it is important to respond to changes in the ideal
forms of financial services and financial institutions in line with the progress of digitalization, etc. made in recent
years. Therefore, the Bureau formulates the grand design of the financial system in a forward-looking manner byincorporating the opinions of a wide range of stakeholders, including financial institutions and users, acquired
through discussions at the Financial System Council and solicitation of public comments.
The inFSA'ssymbolmark has been
designedfrom "FSA"—thelettersofofCPAs,
the Financial
The Bureau is also
chargeof supervising
corporate
governancereform andinitialactivities
audit
Services
Agency.
corporations, etc.,
examiningand making dispositions on annual securities reports and other disclosure
The middlefinancial"S" represents
a smoothflow of finance, which is being guarded from both sides.
documents, and supervising
instruments
exchanges.

FSA's symbol markThe light blue color expresses the smooth flow of finance and the transparency of the FSA's
policy.

15

Financial Services Agency

History of the FSA
June 1998

The Financial Supervisory Agency was established as an administrative organ (external organ of the Prime Minister’s
Office) responsible for inspection and supervision of private sector financial institutions and surveillance of securities
transactions. With the establishment of the Financial Reconstruction Commission (FRC) in December of the same year,
the Financial Supervisory Agency became an organization under the jurisdiction of the FRC.

July 2000

The Financial Services Agency (FSA) was established under the jurisdiction of the FRC throughreorganization of the Financial Supervisory Agency. With this change, the FSA became responsible forplanning of the financial system for which the Ministry of Finance had been responsible.

January 2001

By the reorganization of central government ministers, the FSA became an external organ of the Cabinet
Office and, with concurrent abolishment of the FRC, the FSA took over the business concerning dispositionof failed financial institutions.

Organizational Changes
Ministry of Finance

Until July
1992

July 1992
toJune 1998

June 1998
toDecember 1998

Securities Bureau

Banking Bureau
Inspection Department

Insurance Department

Ministry of Finance
Minister's Secretariat

Securities Bureau

Banking Bureau

Financial Inspection Department

Insurance Department

Prime Minister's Office

Ministry of Finance

Financial Supervisory Agency

Financial System Planning Bureau

Securities and Exchange Surveillance Commission
Prime Minister's Office

December 1998
toJune 2000

Ministry of Finance

Financial Reconstruction Commission
Financial Supervisory Agency
Secretariat

January 2001
toMarch 2004

Ministry of Finance

Financial Reconstruction Commission
Financial Services Agency
Secretariat

Financial System Stabilization Division,
Minister's Secretariat*

Securities and Exchange Surveillance Commission

Cabinet Office

Ministry of Finance

Financial Services Agency

Financial System Stabilization Division,
Minister's Secretariat*

Securities and Exchange Surveillance Commission

Cabinet Office

Current

Financial System Planning Bureau

Securities and Exchange Surveillance Commission

Prime Minister's Office

July 2000
toJanuary 2001

Securities and Exchange
Surveillance Commission

Financial Services Agency
Securities and Exchange Surveillance Commission

Ministry of Finance
Financial System Stabilization Division,
Minister's Secretariat*
Certified Public Accountants and Auditing Oversight Board* Concurrently responsible for planning and policymaking concerning the system for disposal of failed financial institutions and concerning financial risk management.

2

FSA's Organization Chart and Local Finance Bureaus
Organization of the FSA
Minister of State for Financial Services

State Minister

Parliamentary Vice-Minister

Financial Services
AgencyCommissioner

Local Finance Bureaus
The FSA Commissioner delegates a part of the authority for
inspection and supervision of local private financial institutions,etc. to the Directors-General of Local Finance Bureaus, etc. (local
branch organs of the Ministry of Finance) based on laws andregulations. The FSA Commissioner directs and supervises the
Directors-General of Local Finance Bureaus, etc. with regard toaffairs related to the delegated authority.
Fukuoka Local
Kinki Local
Finance Branch Bureau Finance Bureau
Saga Local Finance Office
Nagasaki Local Finance Office

Kyusyu Local
Finance Bureau

Oita Local Finance OfficeMiyazaki Local Finance Office
Kagoshima Local Finance Office

Tohoku Local Finance Bureau

Aomori Local Finance OfficeMorioka Local Finance Office
Akita Local Finance Office
Yamagata Local Finance Office
Fukushima Local Finance Office

Chugoku Local
Finance Bureau

Kanto Local Finance Bureau
Mito Local Finance Office
Utsunomiya Local Finance Office
Maebashi Local Finance Office
Chiba Local Finance Office
Tokyo Local Finance Office

Shikoku Local Finance Bureau Tokai Local Finance Bureau

Tokushima Local Finance Office
Kochi Local Finance Office
Matsuyama Local Finance Office3

Hakodate Local Finance Office
Asahikawa Local Finance Office
Kushiro Local Finance Office
Obihiro Local Finance OfficeOtaru Sub-OfficeKitami Sub-Office

Hokuriku Local
Finance Bureau

Otsu Local Finance OfficeToyama Local Finance Office
Kobe Local Finance Office
Fukui Local Finance Office
Wakayama Local Finance Office
Kyoto Local Finance Office
Nara Local Finance Office

Tottori Local Finance Office
Matsue Local Finance Office
Okayama Local Finance Office
Yamaguchi Local Finance Office

Hokkaido Local
Finance Bureau

Gifu Local Finance Office
Shizuoka Local Finance Office
Tsu Local Finance Office

Yokohama Local Finance OfficeNiigata Local Finance Office
Kofu Local Finance Office
Nagano Local Finance Office

Okinawa
General Bureau

Financial Services Agency

Resources Management Division
Planning and Management Division

Strategy Development
andManagement Bureau

Strategy Development Division
Risk Analysis Division
Director for Risk Analysis Division
Planning and Management Division

Policy and Markets
BureauVice Minister forInternational Affairs

Financial Markets DivisionCorporate Accounting and Disclosure Division
Planning and Management Division
Banking Business Division I

Supervision Bureau

Banking Business Division II
Insurance Business Division
Securities Business Division

Administrative
Law Judges
Planning and Management DivisionMarket Surveillance Division
Securities Business Monitoring Division

Securities and Exchange
Surveillance Commission

Executive Bureau

Director for Securities Business Monitoring DivisionMarket Misconduct Investigation Division
Disclosure Inspection Division
Criminal Investigation Division

Certified Public Accountants
andAuditing Oversight Board

Planning, Management and CPA Examination Division

Executive Bureau
Monitoring and Inspection Division* The chart shows the organization as provided above the Cabinet Office Ordinance for Organization of the Financial Services Agency.

4

FSA's Policies
Financial regulation and supervision have three major policy objectives: to ensure stability of the financial
system; to enhance user protection and user convenience; and to establish fair and transparent markets.
These policy objectives have been shared for a long time among the authorities of many countries around theworld without essential changes. However, financial situations are constantly changing, as represented byinnovation of financial technologies and globalization of financial markets.
The FSA faces a major policy challenge to adapt the methods of financial regulation and supervision to thesechanges, and to enhance their quality.

Strategy Development and Management Bureau
The functions of the Strategy Development and Management Bureau are largely divided into the following
three.

Acting as the FSA's control tower
The Bureau makes overall coordination of matters concerning the entire FSA, such as strategic policy planningand communication and coordination among departments within the FSA. From the viewpoint of the FSA's
operation of activities based on the PDCA cycle, the Bureau collectively summarizes and publishes the results of
the FSAʼs policy in the previous program year and the strategic priorities for the current program year. It also
engages in the reform of the FSA in order to constantly enhance the quality of the FSAʼs policy.

Playing a central role in financial diplomacy
In order to deepen international collaboration in the financial sector, the Bureau contributes to discussions on
international financial regulations and works to strengthen the network and cooperation with overseas authorities.

Determining hidden risks in the financial system
The Bureau monitors the financial risks, stability, and other aspects of the overall financial system byconducting inspections as well as creating databases and analyzing data. It also conducts cross-sectoral
monitoring of issues common to financial institutions, such as anti-money laundering measures and cybersecurity measures. In addition, the Bureau monitors and supervises FinTech firms, such as crypto asset
exchange service providers and funds transfer service providers.

Policy and Markets Bureau
Building a stable and vigorous financial system anddeveloping efficient and fair financial markets
The Policy and Markets Bureau mainly engages in the designing and planning of finance-related laws,
regulations, and systems.
Specifically, the Bureau sets rules to be observed by financial institutions, etc. through establishment,
amendment, and abolition of finance-related laws and regulations such as the Banking Act and the Financial
Instruments and Exchange Act. It also works to build a stable and vigorous financial system and develop efficientand fair financial markets so as to enable people to invest assets with a sense of security and companies tosmoothly procure funds.
In designing and planning laws, regulations, and systems, it is important to respond to changes in the ideal
forms of financial services and financial institutions in line with the progress of digitalization, etc. made in recent
years. Therefore, the Bureau formulates the grand design of the financial system in a forward-looking manner byincorporating the opinions of a wide range of stakeholders, including financial institutions and users, acquired
through discussions at the Financial System Council and solicitation of public comments.
The Bureau is also in charge of supervising corporate governance reform and activities of CPAs, audit
corporations, etc., examining and making dispositions on annual securities reports and other disclosure
documents, and supervising financial instruments exchanges.

5

FF ii nn aa nn cc ii aa ll SS ee rr vv ii cc ee ss A
A gg ee nn cc yy

History of the FSASupervision Bureau

The Financial Supervisory Agency was established as an administrative organ (external organ of the Prime Minister’s

Office)responsibleadministration
for inspection and supervision
private sector financial
institutions and surveillance of securities
Conducting
supervisoryusing ofcontinuous
monitoring
June
1998

transactions. With the establishment of the Financial Reconstruction Commission (FRC) in December of the same year,

The purpose of financial inspection and supervision is to achieve the sound and appropriate operation of
the Financial Supervisory Agency became an organization under the jurisdiction of the FRC.
services of financial institutions in order to maintain their credibility, ensure protection for depositors, etc., andfacilitate financing, thereby contributing to the sound development of the national economy.
The Financial Services Agency (FSA) was established under the jurisdiction of the FRC through
The Supervision Bureau carries out continuous monitoring by gaining an understanding of actual conditions
reorganization of the Financial Supervisory Agency. With this change, the FSA became responsible forJuly 2000
and holding dialogue,
accordingto eachinstitution's
size,hadcharacteristics,
and probability ofplanningetc.
of thefinancial system
for financial
which the Ministryof Financebeen responsible.
occurrence of serious problems in financial soundness or compliance. Based on the monitoring results, theBureau implements supervisory measures or takes other actions as necessary to prevent occurrence of serious
By the reorganization of central government ministers, the FSA became an external organ of the Cabinet
problems, and encourages financial institutions to make various voluntary efforts for realizing better practices
Office and, with concurrent abolishment of the FRC, the FSA took over the business concerning disposition
January 2001
through dialogue,ofetc.
failed financial institutions.
The FSA aims to establish transparent and fair policy based on clear rules, in principle. Therefore, the Bureau
formulates and publishes Supervisory Guidelines, which systematically organize matters such as the basic
concept for inspection and supervision, points of attention in the conduct of administrative processes, andsupervisory evaluation points, as manuals for officials engaging in the inspection and supervisory work.

Organizational Changes
Ministry of Finance

Until July
1992

Securities Bureau

Banking Bureau
Inspection Department

Insurance Department

Securities and Exchange Surveillance Commission

Ministry of FinanceActing as the guardian of the market
July 1992
The
Securities
and Exchange
Surveillance
Minister's
Secretariat
Securities
Bureau Commission
Banking(SESC)
Bureau is to secure fairness andto mission of thetransparencyinmarkets
andprotect
investors.
The
SESC
consistsofachairmanandSecurities
two commissioners
and Exchange
June 1998

Surveillance Commission
Financial
Inspection
Department
Insurance
Department
appointed by the Prime
Minister,and performs
duties independently fromthe FSA.
The SESC's Executive Bureau engages in operations including market surveillance and monitoring of Financial
Instruments Business Operators, etc., investigation of market misconduct such as insider trading, inspection ofPrime Minister's Office
Ministry of Financedisclosure
June1998 documents, and criminal investigations against serious and malicious violations.
Financial
Supervisory
Financial System
Planning
BureauIf any statutory violation
is identified
as aAgency
result of these inspections or investigations,
the SESC
may
make
to
recommendations
to the Commissioner of the FSA etc. to take administrative disciplinary actions or recommend
December
1998
Securities and Exchange Surveillance Commission
for administrative monetary penalty payment order.
Prime Minister's Office

December 1998
toJune 2000

Ministry of Finance

Financial Reconstruction Commission
Financial Supervisory Agency
Secretariat

Financial System Planning Bureau

Securities and Exchange Surveillance Commission

Certified Public Accountants and Auditing Oversight Board
Prime Minister's Office

Ministry of Finance

Ensuring
in AuditJuly
2000 Confidence
Financial Reconstruction Commission
Financial System Stabilization Division,
The Certified Public Accountants and Auditing Oversight
Board(CPAAOB)
consistsofa chairperson
and nine
toFinancial
Services
AgencyMinister's
Secretariat*
commissioners
appointed by the Prime Minister. The CPAAOB exercises its authority independently from theJanuary
2001
Secretariat

Securities and Exchange Surveillance Commission

FSA.
The CPAAOB reviews and examines reports on Quality Control Reviews on audit firms conducted by theJapanese Institute of CertifiedCabinet
PublicOffice
Accountants, and if necessary, conducts on-site inspections.
In case that
Ministry of Finance
January
2001 deficiencies are found in the firm’ s quality control, the CPAAOB recommends that the Commissioner
the serious
Financial
Services Agency
Financial System Stabilization Division,of to
the FSA take administrative
actions.
Minister's Secretariat*
March
2004
The
CPAAOB is also responsible for the fair and smooth implementation of CPA examinations as well as the
Securities and Exchange Surveillance Commission
examination/deliberation of disciplinary actions against CPAs and audit firms. Through these activities, it
endeavors to ensure and improve the quality of audits and secure the reliability of accounting audit in Japan.
Moreover, it also works to Cabinet
ensure Office
and improve the quality of global audits through active
participation
Ministryof Finance in theInternational Forum of Independent Audit Regulators (IFIAR),* for example.
Financial System Stabilization Division,
Financial financial
Services Agency
organization that has its secretariat in Japan (Tokyo).
* IFIAR is the only international
Minister's Secretariat*
Current
Securities and Exchange Surveillance Commission

Certified Public Accountants and Auditing Oversight Board* Concurrently responsible for planning and policymaking concerning the system for disposal of failed financial institutions and concerning financial risk management.

62

National Diet Bldg.

CabinetOfficeKasumigaseki
Bldg.

Ko
k
Ko
(M kai-g
aru ijidkkno om(C ai-g
uc ae
hiy ijidhi
Lin Sta
od om
e) .
a a
Lin e
e) Sta.

Financial
Services
AgencyMinistry of Education,
Culture, Sports, Science andTechnology / Board of Audit

Ministry ofLand,
Infrastructure,
Transport andTourism
Ministry ofInternal Affairs
andCommunications

CentralGovernment
Bldg. No. 4
Ministry ofForeign
Affairs

Ministry of
Finance

Kasumigaseki Sta.
(Hibiya Line)
Ministry ofAgriculture,
Forestry and
Fisheries
Ministry of
Health,Labour andWelfareKasumigaseki Sta.
(Marunouchi Line)

Kasumigaseki Sta.
(Chiyoda Line)

Toranomon Sta.
(Ginza Line)

Ministry of
Economy,Trade andIndustry

Tokyo Court
Complex

Bar
Association
Bldg.

Financial Services Agency
Central Government Bldg. No. 7, 3-2-1 Kasumigaseki,
Chiyoda-ku, Tokyo 100-8967, Japan
TEL: +81-3-3506-6000 (main)

Access(By subway)● 6-minute walk from Toranomon Station on Ginza Line (G07)● 6-minute walk from Kasumigaseki Station on Chiyoda Line (C08) or
Hibiya Line (H07)● 9-minute walk from Kasumigaseki Station on Marunouchi Line
(M15)
● 7-minute walk from Kokkai-gijidomae Station on Marunouchi Line
(M14) or Chiyoda Line (C07)

Published in March 2023