一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contact
for Foreign Asset Management Firms
The lack of support available in English language has often been pointed out
as an entry barrier to the Japanese market. Both the central government andTMG have support services available as they try to attract more asset
management companies. This report outlines such initiatives and how they
can support overseas financial services related businesses set up a local office.
(Table of Contents)
1.

Background of promoting the use ofEnglish and the establishment of aSingle Point of Contact for Foreign
Asset Management Firms

2.

Initiatives of the Japanese government

2-a. Initiatives to promote the use of English infinancial administration
2-b. Initiatives to establish a Single Point ofContact for Foreign Asset ManagementFirms
3.
Initiatives of TMG
3-a. Initiatives to promote the use of English infinancial administration
3-b. Initiatives to establish a Single Point ofContact for foreign financial companies
4.

Voices from the companies using thesupport

1. Background of promotingthe use of English and theestablishment of a Single Pointof Contact for Foreign AssetManagement Firms
It is an urgent task to strengthen Japan’sfunctions as a global financial center inorder to create new employment andbusiness opportunities as well as economic
growth in Japan, and to make global
financial markets more resilient against
crises such as natural disasters throughgeographical diversification of financial
centers by promoting diversification offinancing, sophistication of asset
management, and evolution of financial
innovation.

For that purpose, it is important tofacilitate the entry of highly specialized
foreign asset management companies, etc.,
into the Japanese market; and as part ofthis effort, the promotion of use of English
in financial administration and establishinga Single Point of Contact for Foreign AssetManagement Firms have been underway.

2. Initiatives of the Japanese
government
2-a. Initiatives to promote the use ofEnglish in financial administration
Amendments to Cabinet Office Ordinanceto allow for completing application forregistration in English, etc.
The Cabinet Office Order to Partially Amend
Cabinet Office Order on Financial
Instruments Business, etc., the Ordinance toPartially Amend the Ordinance on Financial
Services Providers' Deposit for Operation
and Regulatory Notices along with the draftof the related public notice to be newly
established (the draft of the amendments to
the Cabinet Office Ordinance, etc.) were
published on November 6, 2020, and werepromulgated/enforced on January 12, 2021.

The purpose of these amendments is toallow foreign asset management companies,etc. newly entering the Japanese market tosubmit documents in English when applying
for registration as an operator of Type II
Financial Instruments Business (sales offunds, etc. managed by the company)
relevant to Investment Management
Business and Investment Advisory andAgency Business; and when undergoingpost-registration supervision.

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022

一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contact
for Foreign Asset Management Firms
Key points of the amendments are as follows.
⚫ (1) Applicants eligible for submitting
documents in English① Applicants who are authorized toconduct asset management businessor investment advisory business in aforeign jurisdiction or relevant
companies of such entities② Applicants who have worked in theabove entity as a senior officer oremployee (i.e. where he/she isnamed as a senior officer or an
important employee in theapplication documents)⚫ (2) Applicable business① Investment Management Business② Investment Advisory and Agency
Business③ Type-II Financial Instruments
Business relevant to asset
management business in either ofthe following cases:(i) where selling a beneficial
certificate of an investment trust ora fund established by itself(ii) where conducting a so-called
Deemed Type-II Financial
Instruments Business operated by
Asset Management Company of an
Investment Corporation or an
operator of Investment Management
Business for Qualified Investors⚫ (3) Examples of documents that can besubmitted in English⚫ Application for registration,
Notification of change to mattersspecified in application forregistration, Notification on changeof content or method of business,
Application for a registration ofchange, Notification of deposit foroperation, etc.
⚫ For the list of documents, pleaserefer to the following (in Japanese).
https://www.fsa.go.jp/news/r2/shouken/20201106-2/01.pdf⚫ (4) Supervision and inspection in English⚫ The amendments have made it
possible to use English at the timeof supervision and inspection of
newly registered foreign asset
management companies. The
documents that need to besubmitted to the authorities can beprepared in English, and thecommunication can be made in
English during the supervision andinspection.
Promoting the Use of English andEstablishing a Single Point of Contact
for Foreign Asset Management Firms
https://www.fsa.go.jp/en/news/2020/202
01106-2/20201106.htmlPublication of “Guidebook for
Registration of Investment
Management Business and Other
Financial Instruments Businesses”
In January 2020, the Financial Services
Agency (FSA) released Guidebook for
Registration of Investment Management
Business and Other Financial Instruments
Businesses both in Japanese and English
for the purpose of providing information
concerning the procedures for registration
as Investment Management Business andother Financial Instruments Businesses
operators. In easily understandable way,using flowcharts and illustrations, thisGuidebook explains the types ofregistration required for each of the major
business schemes related to asset
management business, while providing anoverview of the procedure for registration
screening and explanations on therequirements for registration.
Guidebook for Registration ofInvestment Management Business andOther Financial Instruments Businesses
https://www.fsa.go.jp/en/policy/marketent
ry/guidebook.html

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022

一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contactfor Foreign Asset Management Firms
2-b. Initiatives to establish a Single
Point of Contact for Foreign AssetManagement Firms
Establishment of theFinancial Market Entry Office
In January 2021, the FSA and Local
Finance Bureaus (”LFBs”) jointly
established the ”Financial Market Entry
Office” (the Office). The Office seamlessly
provides one-stop service in English forpre-registration consultation, registration
procedures, and post-registration
supervision for foreign asset managementcompanies newly entering the Japanesemarket. The Office also conducts online
pre-registration consultation, including
consultation from overseas, using videoconferencing.
The Financial Market Entry Office offers
one-stop services as follows.
⚫ (1) Pre-registration consultation⚫ The Office accepts inquiries fromall foreign financial businesses,
including asset managementcompanies, regarding theinterpretation of laws and businessmodels in advance of registration
as a financial instruments business
operator, and inquiries regarding"Guidebook for Registration ofInvestment Management Businessand Other Financial Instruments
Businesses." This service is offeredin both English and Japanese.
⚫ (2) Registration procedures⚫ The Office handles registration
procedures in English for foreign
asset management companies
newly entering the Japanesemarket, if they meet therequirements.

⚫ (3) Post-registration supervision⚫ The Office conducts supervisionand inspections in English ofoverseas asset managementcompanies, etc. that havecompleted the registration
procedures in English. In
anticipation of an increase in thenumber of registered firms in thefuture, the necessary systems forsupervision and inspection will bedeveloped.
Financial Market Entry Office⚫ Office hours: 9:30 a.m. to 6:15 p.m.
(JST) on weekdays⚫ E-mail : marketentry@fsa.go.jp⚫ Phone number: (+81) 3-6667-0551

Promoting the Use of English in Financial
Administration and Establishing a Single Point ofContact for Foreign Asset Management Firms
Foreign asset management firms, etc.
newly entering the Japanese market

Financial Market Entry Office

FSA

LFBs

Consultation for new market entry,
Registration examination / Acceptanceof applications for registration,
Post-registration supervision,
Public relations and promotion activities
for overseas businesses

Created based on the Financial Services Agency,
The Financial Market Entry Office

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022

一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contactfor Foreign Asset Management Firms
3. Initiatives of TMG
3-a. Initiatives to promote the use ofEnglish in financial administration
Publication of “Guidance to the AssetManagement Industry in Japan”
In September 2017, the TMG, under thesupervision of the FSA, compiled an
English-language guidebook in order toprovide easy-to-understand explanationsof Japan's financial-related laws,
regulations, and procedures for applyingfor registration as a Financial Instruments
Business operator.
In April 2021, the TMG revised thisguidebook and released "Asset Managers& FinTech Companies Registration
Guidebook“ in English with a view tofacilitating a smooth entry into theJapanese market by FinTech companies,in addition to overseas asset managementcompanies considering businessdevelopment in Japan, in light of thechanging environment surrounding
international finance.
Guidance to the Asset Management
Industry in Japan
https://www.investtokyo.metro.tokyo.lg.jp/en/for_foreign/guidebook.php

3-b. Initiatives to establish a Single
Point of Contact for foreign financial
companies
Financial One-Stop Support Service ofthe Business Development CenterTOKYOThe Business Development Center TOKYO
was established in April 2017 under thesupervision the FSA to provide freeadministrative support and comprehensive
consulting services to foreign financial
companies considering establishing a basein Tokyo. The Financial Desk Consultants
provide consultation services to foreign
financial companies, etc., and introduce
them to financial experts, etc., according totheir needs.
Business Development CenterTOKYO⚫ Office hours: 9:30 a.m. to 5:30 p.m.
(JST) on weekdays⚫ E-mail : contactus@bdc-tokyo.org⚫ Phone number: (+81) 3-6269-9981

4. Voices from the companies
using the support services
The support services offered by theJapanese government and the TMG arebeing used by foreign companies in variousways. Below are some of the commentsfrom the companies that have actually used
the services.
Use cases of theFinancial Market Entry Office⚫ Affirmative Investment Management
Partners (Asset manager, UK)✓ We had heard that it would take six
months to a year to obtain a financial
license and that the procedures arecomplicated, so we were prepared fora lengthy process. However, by using
the Financial Market Entry Office, wewere able to complete the acquisitionof an Investment Advisory and Agency
Business license in two and a halfmonths from the submission of thewritten overview.
✓ During the video interview with theFinancial Market Entry Office, many
staff members from the FSA and Kanto
Local Finance Bureau participated andgave us explanations in English.
Therefore, the executives from our UK
head office were able to clarify anyquestions directly with the FSA on thespot without using an interpreter.

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022

一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contactfor Foreign Asset Management Firms⚫ Columbia Threadneedle Investments(Asset manager, US)✓ The registration procedures in English
through the Financial Market Entry
Office went much smoother than we
had expected.
✓ "Guidebook for Registration ofInvestment Management Businessand Other Financial Instruments
Businesses" was very helpful. Theflowcharts and other detailedexplanations enabled us to check
where our business model fit in.
✓ We were also able to exchange
questions with the Financial Market
Entry Office in English, which madethe process much faster.

Use cases of the Business
Development Center TOKYO (BDCT)⚫ Shift Technology（FinTech company,France）✓ Through the BDCT, the TMG
provided us with the necessary
information and contacts for legal
procedures, administrative
procedures, financial procedures,
office rental, and various othermatters related to the establishmentof our Japanese corporation.
✓ For a foreign company newly
established in Japan, hiring local
staff can be tough, but the TMG also
provided support for recruiting
human resources.
✓ The BDCT helped us understandhow to do business in Japan basedon their insight into how foreigncompanies work. The BDCT's
support has not only facilitated theestablishment of Shift Technology
Japan, but has also attracted
Japanese talent to work with us in
the InsureTech industry.

⚫ Global X Management Company (Assetmanager, US)✓ The first and foremost challenge forasset management companies like
us is to obtain a license because weoperate in a regulated industry
domain. For this, the BDCT
introduced us to an experienced
consultant who gave us a lot of
useful advice on the application.
Thanks to this, the application
process went very smoothly,
allowing us to complete theprocedures quickly.
✓ The BDCT's consultants also assisted
us in using the subsidy system forwhich Global X Japan is eligible.
While we had a lot of work to do toprepare the environment for the
kick-off, such as building the internal
structure and creating internal
regulations for Global X Japan tocarry out operations, the advice
from the BDCT on the specificprocedures to follow in applying forthe subsidy was very helpful inmaking the application process more
efficient.
⚫ Distributed Ledger Technologies（FinTech company, Singapore）✓ We had struggled to open a bankaccount for about a month; but after
consulting with the BDCT, we wereable to open a bank account within a
few days. We had to spend a monthtrying to get approval frommegabanks and internet banks
probably due to the fact that ourCEO lives overseas and our
registered address is the one ofvirtual office. Our Japanese advisor
informed us of the BDCT. Afterconsulting with the BDCT, we wereintroduced to a bank. With thegenerous support of the BDCT, wecould make a presentation to thebank and open an account with thatbank.

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022

一般社団法人 東京国際金融機構(FinCity.Tokyo)

FY2021 Monthly Market Report vol.6 –January 2022

Promoting the Use of English and Establishinga Single Point of Contactfor Foreign Asset Management Firms
Sources:
Financial Services Agency, Case Studies (AIM Japan) June 2021, Jun. 2021
https://www.fsa.go.jp/internationalfinancialcenter/en/case-studies/interview_01.html
Financial Services Agency, Case Studies (Columbia Threadneedle) November 2021, Nov. 2021
https://www.fsa.go.jp/internationalfinancialcenter/en/case-studies/interview_02.html
Financial Services Agency, Finalization of Cabinet Office Order to Partially Amend Cabinet Office Order on Financial
Instruments Business, etc., the Ordinance to Partially Amend the Ordinance on Financial Services Providers’ Deposit forOperation and Regulatory Notices, Jan. 2021
https://www.fsa.go.jp/en/news/2021/20210112/20210112.html
Financial Services Agency, Guidebook for Registration of Investment Management Business and Other Financial Instruments
Businesses, Jan. 2020
https://www.fsa.go.jp/en/policy/marketentry/guidebook.html
Financial Services Agency, List of documents which can be prepared in English for post-registration (including attachments),
Jan. 2021
https://www.fsa.go.jp/en/policy/marketentry/List-of-documents_post-registration.html
Financial Services Agency, List of documents which can be prepared in English for registration (including attachments), Jan.
2021
https://www.fsa.go.jp/en/policy/marketentry/List-of-documents.htmlFinancial Services Agency, Promoting the Use of English and Establishing a Single Point of Contact for Foreign AssetManagement Firms, Nov. 2020
https://www.fsa.go.jp/en/news/2020/20201106-2/20201106.html
Financial Services Agency, Public Consultation on Cabinet Office Order to Partially Amend Cabinet Office Order on Financial
Instruments Business, etc., the Ordinance to Partially Amend the Ordinance on Financial Services Providers' Deposit forOperation and Regulatory Notices, Jan. 2021
https://www.fsa.go.jp/en/news/2020/20201106/20201106.html
Financial Services Agency, The Financial Market Entry Office, Jan. 2021
https://www.fsa.go.jp/en/policy/marketentry/index.html
Tokyo Metropolitan Government, Guidance to the Asset Management Industry in Japan is Revised, Apr. 2021
https://www.metro.tokyo.lg.jp/tosei/hodohappyo/press/2021/04/22/10.html
Invest Tokyo, Case Studies, Viewed in Jan. 2022
https://www.startup-support.metro.tokyo.lg.jp/for_foreign/bdc_tokyo/en/case_studies/
Invest Tokyo, Guidance to the Asset Management Industry in Japan, Viewed in Jan. 2022
https://www.investtokyo.metro.tokyo.lg.jp/en/for_foreign/guidebook.php
Invest Tokyo, Support for companies in all sectors. Viewed in Jan. 2022
https://www.startup-support.metro.tokyo.lg.jp/for_foreign/bdc_tokyo/en/

Copyright: The Organization of Global Financial City Tokyo (FinCity.Tokyo)

January, 22, 2022