Focal Points of “JSDA’s Major Work Plans”
July 1st, 2022

- Initiatives toward Addressing Social Issues -Stronger Support for Asset Building

Achievement of the SDGs

～Contribution to the Doubling Asset-based Incomes Plan～～Accelerate Green Transformation (GX)～ Take initiatives for fundamental expansion of the NISA Take initiatives to improve the defined contribution (DC)pension system (Corporate DC, iDeCo) Take initiatives to improve financial literacy grouping bygeneration and occupation (Promote collaboration with
the Japanese Bankers Association (JBA))HR Development

Promote sustainable finance
Enhance interactions and information exchange on transition
finance among stakeholders in Asia
Deliberate on contributing to the phased development of the
GX League
Further promote diversity, including women’s active
participation

to Carry Out the Actions

×
Enhancing Collaboration with

Stakeholders

Fostering Start-ups

inside/outside Japan Work toward consolidating the primary andsecondary markets for unlisted stocks
 Facilitate risk money supply to start-ups
 Bring measures into effect to improve the IPO
price-setting process×
Proactive Proposals and Initiatives for

the Realization ofa New Form of Capitalism

Provision of Financial Services
Fit for an Aging Society

Accommodating Digital Transformation (DX)
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Further promote paperless and digitalized
procedures in securities transactions
Deliberate on promoting securities firms’smooth adaption to DX
Properly respond to progress in financial
innovation
Provide support for cybersecurity measures atsecurities firms
Deliberate on expanding the use of the Social
Security and Tax Number System (“My Number”
System)Deliberate on more attentive financial services appropriate for elderly customers
Conduct studies on the ways for asset management and utilization of agents’ transactions in cases ofcognitive decline or impaired judgment
Smoothly inherit financial assets between generations

Toward Further Enhancement of Investor Trust and Functioning of Securities Markets

JSDA’s Major Work Plans for 2022-2023 (July 2022)
Investors(Individuals)

Strengthen support for household’s asset-building throughinvestment by conducting PR activities and contributing todeveloping suitable tax systems, etc.

1. Promote medium- and long-term asset building• Take initiatives for fundamental expansion of the NISA
• Undertake initiatives to improve the defined contribution (DC) pension system (Corporate
DC, iDeCo)• Promote asset-building through workplace
2. Promote the expansion of securities investment• Undertake initiatives toward the integration of financial income taxation (i.e. aggregation of
profits and losses including those of derivatives)• Conduct PR activities to raise public awareness of securities investment• Conduct PR activities for asset building through stock investment
3. Create an environment that promotes smooth inheritance of risk assets between
generations
4. Take initiatives to improve financial literacy (Promote collaboration with the Japanese
Bankers Association (JBA))• Promote financial and securities education in schools• Promote financial and securities education for working adultsMarket(Infrastructure)
1.
2.
3.
4.
5.
6.
7.
8.
9.

Properly respond to the progress in financial innovation
Facilitate risk money supply to start-ups
Work toward consolidating the primary and secondary markets for unlisted stocks andactivating their trading
Undertake initiatives for expanding and diversifying the corporate bond market
Take initiatives to achieve an established status as an international financial center
Undertake initiatives aimed to expand the use of the Social Security and Tax Number System(“My Number” System)
Provide support for cybersecurity measures at securities firms
Conduct drills to maintain market functions
Review the Sales Representative Registration and Qualification System

Global1.
2.
3.
4.

Strengthen financial and capital markets’ functions andcompetitiveness, including advancing financial innovation andJapan’s status as a global financial hub

MarketIntermediaries(Members)
1.

Promote the sustainable finance and accelerate the GX

2.

Create a fulfilling work environment and promote diversity

3.

Support economically vulnerable children

4.

Bolster partnerships with both Japanese and overseas parties towards the achievement of
the SDGs

5.

Support securities firms’ efforts to develop human resources toward solving social
issues6.

Carry out measures to ensure customer-oriented business conduct

7.

Respond to needs to provide financial services fit for an aged society

8.

Facilitate paperless and digitalized procedures in securities transactions

9.

Properly respond to the changes in financial services
・ Review self-regulation considering the current state of solicitation for structured bond sales
・ Review self-regulatory rules based on the current reality of private placements of bonds

10. Exercise effective self-regulatory functions
・ Conduct agile and effective inspections of association members
・ Continue efforts to prevent insider trading
・ Compile FAQs responding to the revisions of regulations on Best Execution Policies, etc.

11. Bring measures into effect to improve the IPO price-setting process
12. Ease regulations on public offerings for M&A purposes
13. Work to reduce mistakes and failures in securities transactions and facilitate the post-survey
and report operations for such incidents
14. Participate in the review of the firewall regulations, etc. from the viewpoint of the sounddevelopment of capital market

JSDA

Enhance global outreach and cooperation

Conduct overseas PR activities on the attractiveness and potential of Japanese markets
Enhance international cooperation and collaboration, including support for emerging
markets and information exchange on transition finance
Respond to the global regulatory agenda
Respond to enhanced demand for English-based communication in JSDA’s operations

Take active steps towards the achievement of SDGs and theacceleration of Green Transformation (GX), promotecustomer-oriented business conduct, and improve market
intermediaries’ functions and credibility.

1.
2.
3.

Pursue measures and operations adapted to the DX

Further increase the efficiency of JSDA’s operations tapping into the initiatives adapted to
the Digital Transformation (DX) era
Sustain and strengthen JSDA’s business continuity plan (BCP) and cybersecurity measures
Strategically develop qualified human resources and improve staff members’ work-lifebalanceJSDA’s Major Work Plans(2022-2023)

July 1, 2022

Investors (Individuals)
Strengthen support for household’s asset-building through investment by conducting PR activities
and contributing to developing suitable tax systems, etc.
1. Promote medium- and long-term asset building• Take initiatives for fundamental expansion of NISAWork with related parties seeking fundamental reform of NISA in order to shift individual financial assets from savings
to investments across all generations.

Conduct PR activities to promote medium- and long-term asset-building targeted at a wide range of people, including
online advertisements for Tsumitate (dollar-cost averaging) NISA and promotional activities for NISA on "Day of NISA".
• Undertake initiatives to improve the defined contribution (DC) pension system (Corporate DC, iDeCo)Work with related parties to improve the system/operations related to the DC pension (Corporate DC, iDeCo).
• Promote asset-building through workplace
Conduct PR activities through workplace targeted at companies and municipalities to promote asset-building using
incentive systems such as Tsumitate NISA and DC pension system for working people including those who are notinterested in investment.

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Investors (Individuals)
2. Promote the expansion of securities investment• Undertake initiatives toward the integration of financial income taxation (i.e. aggregation of profits and losses
including those of derivatives)
Work with related parties to respond to the discussion on financial income taxation.
• Conduct PR activities to raise public awareness of securities investment
Conduct PR activities mainly through the JSDA website in order to deepen the understanding of the significance andobjectives of securities investment among those who are not interested in investment (focusing on younger
generation).
• Conduct PR activities for asset building through stock investment
Implement PR activities targeted at a wide range of people through the JSDA website and SNS to promote their assetbuilding , highlighting the attractiveness of stock investments.

3. Create an environment that promotes smooth inheritance of risk assets between generations
Further review the valuations for inheritance tax and work with related parties to support the transfer of financial
assets between generations.
Conduct studies necessary to ensure efficient management of financial assets, effective utilization of agents, as wellas smooth asset inheritance between generations fit for the aged society.
2Investors (Individuals)
4. Take initiatives to improve financial literacy (Promote collaboration with theJapanese Bankers Association（JBA)）• Promote financial and securities education in schools
Continue activities to support financial and securities education in schools by assisting teachers (of Social Studies injunior high schools and Civics and Home Economics in high schools), which includes providing supplementarymaterials and related information, as well as conducting seminars for the teachers.
In addition, conduct surveys and research to grasp the actual situation and issues in financial and economic
education at schools under the changing circumstances including the newly introduced National Curriculum Standards
and the advances in ICT.
• Promote financial and securities education for working adults
Conduct activities to support financial and securities education for working adults, which includes conducting
seminars, providing online contents for young adults, substantially increasing the number of financial and securities
instructors and offering onsite lectures, with the aim of widely disseminating securities knowledge among
inexperienced and novice investors.
In addition, strengthen collaboration with related parties, including the joint use of the Financial and Securities
Instructors with the JBA, and enhance various approaches to improve financial literacy targeting at a wide range ofgenerations and occupations.
4Market (Infrastructure)
Strengthen financial and capital markets’ functions and competitiveness, including advancing financial
innovation and Japan’s status as a global financial hub
1. Properly respond to the progress in financial innovation
Conduct discussions and measures on tokenized securities (i.e. stocks and bonds that utilize blockchain
technology) as necessary from the perspective of investor protection and sound development of the markets.
Collect information about the ongoing financial innovation collaborating with related parties, and conduct further
research on its impact on the securities industry.

2. Facilitate risk money supply to start-ups
Deliberate on the tax reform requests that promote the supply of growth capital to start-ups.

3. Work toward consolidating the primary and secondary markets for unlisted stocks andactivating their trading
Deliberate on how to develop primary and secondary markets of unlisted stocks for professional investors and how tovitalize their trading from the perspective of contributing to the expansion of fund supply to start-ups at later stages.
Consider establishing a system to promote the distribution and transfer of unlisted stocks in order to revitalize local
businesses and support their business succession.
Enhance PR activities to raise awareness of the unlisted stock trading system.

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Market (Infrastructure)
4. Undertake initiatives for expanding and diversifying the corporate bond market
Respond to various issues for implementing corporate bond repo transactions in line with the "Milestones for theDevelopment of the Corporate Bond Repo Market" published in April 2022.
Conduct periodical assessment regarding the impacts of reporting and publication rules for corporate bondtransactions on market liquidity, and review the rules as necessary.

5. Take initiatives to achieve an established status as an international financial center
Deliberate on measures to enhance Japan’s status as a global financial hub in Asia and a global financial center, andsupport the efforts by city authorities, including Tokyo and Osaka, in order to increase the global presence of theJapanese financial and capital markets.

Work on including profits and losses from derivative transactions in the scope of aggregation of profits and losses
under the tax system in order to activate derivative transactions from the perspective of encouraging investment by
individual investors in Japan's market and enhance Japan’s status as an international financial city.

6. Undertake initiatives aimed to expand the use of the Social Security and Tax Number System(“My Number” System)
Continue to conduct PR activities to encourage customers to submit My Number, as well as to consider specificmeasures and work with related parties to expand the scope of use of My Number in the securities industry.

6Market (Infrastructure)
7. Provide support for cybersecurity measures at securities firms
Undertake necessary actions based on the government’s strategic direction for economic security.

Coordinate member firms’ participation in the government’s cybersecurity exercises, in addition to sharing cyberincident information from member firms and providing them with information about cybersecurity measures taken by
the government.
Provide support for enhancing each firm’s cybersecurity standards to prevent fraudulent access so that customers
can conduct their securities transactions with a greater sense of security.

8. Conduct drills to maintain market functions
Conduct BCP drills for the entire securities market to ensure that the communication network covering the entire
industry functions well in the event of a large-scale disaster.

9. Review the Sales Representative Registration and Qualification System
Proceed with specific reviews toward implementing online training courses for renewal of sales representative
qualification.

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Market Intermediaries (Members)
Take active steps towards the achievement of SDGs and the acceleration of Green Transformation(GX), promote customer-oriented business conduct, and improve market intermediaries’ functions
and credibility.
1. Promote the sustainable finance and accelerate the GX
Through discussions at the "Advisory Board for the Securities Industry to Achieve Carbon Neutrality", deliberate on andimplement initiatives to develop market participants’ capacities with regards to sustainable finance includingtransition finance, as well as to promote sustainable finance to individual investors. Also, strengthen cooperation andcollaboration with domestic and overseas counterparts.
Work with related parties to realize the request for special tax measures for investment in SDG bonds such as green
bonds and social bonds.

2. Create a fulfilling work environment and promote diversity
Plan and conduct seminars and lectures for executives and employees of securities firms to improve working practices
and bolster diversity in the industry.
Delete the gender column on the application for registration of sales representatives and delete gender informationon the registry and other records of sales representatives kept in the JSDA in response to the revision of the Cabinet
Office Ordinance.

8Market Intermediaries (Members)

3. Support economically vulnerable children
Support economically vulnerable children to foster their hope for the future through the "Securities Industry Network
for Supporting Children," a platform that connects securities firms with NPOs supporting children in need.
In order to further increase awareness for addressing the poverty issue among children and youth in the securities
and banking industries, deliberate on and implement industry-wide initiatives in cooperation with the Japanese
Bankers Association, while the entire securities industry continuing to participate in the “Used Book Sale Donations
for Children’s Future.”

4. Bolster partnerships with both Japanese and overseas parties towards the achievement of
the SDGs
Manage the “Shareholders Incentives Endowment Fund for the SDGs” that utilizes social contribution-type shareholder
incentives, and work on advancing the collaboration with universities, etc.

9Market Intermediaries (Members)
5. Support securities firms’ efforts to develop human resources toward solving social issues
Support securities firms' efforts to develop human resources by providing training programs that contribute toachieving the SDGs and offering financial services fit for an aging society, through the "JSDA Training Hub," a trainingsite for the executives and employees of securities firms.

6. Carry out measures to ensure customer-oriented business conduct
Based on the current state of “Customer-Oriented Business Conduct,” consider and provide necessary responses.

7. Respond to needs to provide financial services fit for an aged society
Undertake initiatives as necessary to provide financial services according to each elderly customer’s attributes andstatus.
Enhance the contents of “Booklet on Elderly Customers” distributed in June 2022, sharing case studies among
member firms, and continue to engage in relevant information dissemination. Also, ensure appropriate solicitation
practices for elderly customers by introducing a system to relay the complaints received by the FINMAC from relativesof elderly customers to member firms.

10Market Intermediaries (Members)
8. Facilitate paperless and digitalized procedures in securities transactions
Work with related parties to further facilitate the transition to paperless and digitalization in the securities industry,including documents to be delivered to customers.

Deliberate on promoting smooth Digital Transformation (DX) in securities firms.
Work with related parties to simplify documents attached to the application for registration of sales representatives inorder to enhance operational efficiency in the registration procedure.
Conduct PR activities among the securities industry and work with related parties in order to smoothly introduce theelectronic provision of shareholders meeting materials, which is to be newly introduced under the revised Companies
Act.

9. Properly respond to the changes in financial services•

Review self-regulation considering the current state of solicitation for structured bond sales

Fully remind association members of the alert notification regarding structured bonds issued in June 2022. Consider
and provide necessary responses depending on the products that they are selling as well as their solicitation practices
for such products.

•

Review self-regulatory rules based on the current reality of private placements of bonds

Based on the implementation status of “Rules Concerning Dealing, Etc. of Private Placement, Etc. of Corporate Bonds”
and actual practices in dealing with private placements of bonds by association members, deliberate on the review ofthe said rules as necessary.
10Market Intermediaries (Members)
10. Exercise effective self-regulatory functions•

Conduct agile and effective inspections of association members

Continue to conduct agile and effective inspections of association members according to their businesse operations,status of assets, and other information in order to check and monitor their compliance with laws and self-regulatory
rules, as well as the appropriateness of their internal administration.
•

Continue efforts to prevent insider trading

Continue to collaborate with market-related entities to encourage listed companies to participate in the Japan Insider
Registration & Identification Support System (J-IRISS) and deliberate on and implement further initiatives to prevent
insider trading.
•Compile FAQs responding to the revisions of regulations on Best Execution Policies, etc.

In response to the revisions of regulations on Best Execution Policies, etc., compile FAQs to assist securities firms in
preparing Best Execution Policy and Best Execution Manual.

11. Bring measures into effect to improve the IPO price-setting process
Deliberate on specific measures for the systemic revision to implement measures for the improvement of the IPO
price-setting process based on the report published by the "Working Group on the Public Offering Price Setting
Process."11

Market Intermediaries (Members)
12. Ease regulations on public offerings for M&A purposes
Continue to deliberate on easing current regulations on public offerings for M&A purposes (the current requirements for
issuers to utilize the raised funds for M&A within one year in principle and to disclose an alternative use of the funds), in
order to contribute to the growth of business enterprises through M&A.

13. Work to reduce mistakes and failures in securities transactions and facilitate the post-survey
and report operations for such incidents
Continue to make improvements in the “Handbook for Sales Representatives on Prevention of Securities Incidents”

sent to association members in July 2021, based on the survey of association members conducted in December
2021.
Conduct smooth operations for the incident examination/ the incident report by digitalizing the “Incident Report”
submitted to the authorities in case that the amount of compensation paid to customers for the incident does notexceed JPY 1,000,000.

14. Participate in the review of the firewall regulations, etc. from the viewpoint of the sounddevelopment of capital market
Undertake necessary actions such as conveying member firms’ opinions regarding investment advice and firewall
regulations to the Working Group on Capital Market Regulations of the Financial System Council.
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GlobalEnhance global outreach and cooperation

1. Conduct overseas PR activities on the attractiveness and potential of Japanese markets
Conduct PR activities to update overseas investors, issuers and other related parties on the current situation and steps

being taken in the markets to further raise the global presence of the Japanese financial and capital markets.

2. Enhance international cooperation and collaboration, including support for emerging markets
and information exchange on transition finance
While taking COVID-19 situations into consideration, exercise leadership to enhance interactions and informationexchange between the Asia Securities Forum (ASF) members with the aim of fostering financial and capital markets in
the Asia-Pacific that can contribute to achieving a sustainable economy and society in light of the significance oftransition finance.
Actively engage in international fora, such as the International Council of Securities Associations (ICSA) to respond tocommon global challenges and provide feedback to domestic related parties as necessary.
Undertake initiatives regarding cooperation between the Japanese and Chinese securities markets in collaboration
with related parties, and provide technical assistance and cooperation to related entities in emerging markets.

13Global

3. Respond to the global regulatory agenda
Actively participate in discussions and investor protection initiatives in the International Organization of Securities
Commissions (IOSCO), etc. Follow the global regulatory agenda pertaining to financial and capital markets, andrespond as necessary in collaboration with related domestic and international entities.
Further facilitate the discussion and information sharing regarding the accounting, audit, and sustainability disclosure
standards within the securities industry.

4. Respond to enhanced demand for English-based communication in JSDA’s operations
Conduct English-based communication in JSDA’s operations for new member firms that submit an application forregistration in English to the administrative authorities.
Further promote the translation of JSDA’s self-regulatory rules, notices, etc. into English.

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JSDA
Pursue measures and operations adapted to the DX
1. Further increase the efficiency of JSDA’s operations tapping into the initiatives
adapted to the Digital Transformation (DX) era
Further improve the efficiency of JSDA’s operations through further development of Robotic Process Automation (RPA)
and expansion of digital conference platforms.
Raise awareness of the latest initiatives regarding the DX that JSDA and related parties in the securities industry haveenvisioned or carried out.

2. Sustain and strengthen JSDA’s business continuity plan (BCP) and cybersecurity measures
Enhance cyber resilience against the recent surge in targeted email attacks in order to cope with cyber-attacks properly.
Continue to endeavor to sustain/increase the effectiveness of BCP, including the responses to COVID-19 and otherevents of disaster, through the PDCA (plan-do-check-act) cycle.

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JSDA

3. Strategically develop qualified human resources and improve staff members’ work-life balance
Enrich training programs and educational activities with the aim of developing staff members who have fundamental IT
knowledge and skills in light of the environment where such expertise is becoming essential.
Develop personnel who can contribute to works related to international affairs, international exchange projects andsecurities business practice, by schemes such as sending staff to overseas graduate schools. Also, actively recruit
female staff, aiming at women’s active participation.

Take steps to strike a balance between work and private life, to enable every employee to realize their potential andcontinue to work with ease.

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