Investment management services’for managers and their funds
Industry Issues
In the investment management industry, enhancement of the investment
management operations is vital in order to respond to the changing
environment and to serve investor needs.
The promotion to change investment trends ("from savings to investment") in
the Japanese financial market will expand the investment management
industry and markets in Japan, and investment managers are expected toplay more important roles in the industry value chain.
On the other hand, the investment management industry may be faced withmore radical industry turmoil than the of the past (e.g. globally strengthened
regulations and keen competition for growing markets), and accordingly,
investment managers are expected to enhance and upgrade their operations
to fulfill their fiduciary duties.
It is essential for investment managers in Japan to enhance their operations
to manage more sophisticated and complex financial products (e.g. global
asset management, development of financial products targeting specificrisks, finding new or alternative assets for investment) in response togrowing markets and to serving diverse needs of investors.

Enhancedregulations

Diverse needsof investors
Evolving
markets andsocialstructure

Changing environment

Issues• Need for improved investor protection, fair dealings• Enhanced disclosure and accountability requirements• Tighter regulatory supervision over investment funds• Understanding, analyzing and responding to Japanese andoverseas regulatory trends• Dealing with changes in laws / regulations and inspections• Building an appropriate governance• Changes in investors’ profile, needs and requirements
resulting form the demographic transformation,technological advancement and social shift• Accelerated trends (“from savings to investment”)• Flow of funds to investment with higher risk and return• Structural reform of the Japanese pension system• Global competition for growing markets• Investing based on investors’ needs• Earning high returns through long-term investment• Exploring new assets for investment globally• Contributing to the formation of investors’ assets• Fulfilling fiduciary duties• Achieving flexible and responsive operations

Helping You Grow

Asset Management GroupThe Asset Management Group in KPMG Financial Services Japan assists
investment managers to deal with the challenges they are facing utilizing ourdeep understanding of the business of investment managers.

HighQuality

With the expected changes in the investment management industry, KPMG
Japan established the Asset Management Group (AMG) to integrateknowledge and skills within the KPMG group to support investment
managers strategically to deal with the challenges they are facing.

MarketLeader

KPMG
Investment
Management
Practice

GlobalNetwork

StrongIndustry
Knowledge

The AMG provides professional services that address industry-specificissues, including fund (investment trusts and investment limited partnership)
audits, internal controls, risk management and regulatory advisory, as well as
supporting the enhancement of investment management operations to deal
with the challenges investment managers may face, by utilizing KPMG’sglobal network of firms.
©2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network ofindependent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Our Services
The AMG provides professional services addressing industry-specific issues including
supporting to enhance investment management operations.
Statutory auditsDesign and verification of internal controls

Financial statement audits of publicly-placed investment trusts under the Financial
Instruments and Exchange Act (FIEA)
Financial statement audits of asset management companies under the FIEA and theCompanies Act
Financial statement audits of Investment Limited Partners under the FIEA
Financial statement audits under the Limited Partnership Act for Investment

Establishment, evaluation and improvement of internal controls over financial reporting
Attestation of controls at service organizations (ISAE3402 / SSAE16)
Verification of Global Investment Performance Standards compliance
Advising on the establishment of internal controls related to financial regulations andfinancial instruments business operator’s regulations

Non-statutory audits

Development of the internal audit function

Financial statement audits of privately-placed investment trusts
pursuant to the FIEA
Financial statement audits of asset management companies to which
statutory audits are not applicable

Audit related services


Investigation of the value etc. of specified assets of investment
trusts and investment corporations

AssetManagementServices

FIEA related support






Development of risk management systems

Assisting in the registration of financial instrument business
operators and implementation of structures
Assisting to launch new and consolidated businesses
Advising on securities-related laws and regulation complianceRegulatory investigation and analysis

External evaluation of the internal audit function based on
Institute of Internal Auditors
Support for the development and improvement of theinternal audit function
Internal audit co-sourcing

Support for the evaluation and establishment of risk
management systems based on the Guideline forSupervision of Financial Instruments Business Operators etc.
Risk assessment and improvement support for enterpriserisk management systems

Evaluation and improvement of business processes

Investigation on relevant Japanese / overseas regulations (including joint
investigation with global KPMG member firms)
Analysis of impact of overseas regulations on investment management industry
Research on cross border regulations including funds passport and market
trendsSupport for the business strategies including overseas business development
and other support for oversea locations



Visualization of business processes, gap analysis in line with regulatory
requirements and best practices insight, in addition to remediation plans basedon the assessed risk
Operational due diligence for asset management products and industry

The companies we can provide with the services introduced in this brochure and the scope of such services may be limited from the perspective of the Certified Public Accountants Act,
independence rules and conflicts of interest, among others.

Our Global Network

KPMG Thought Leadership

In KPMG’s global network of firms, asset management professionals in various
countries are able to maintain strong relationship, which helps to accumulate industry
specific knowledge and provide information on current status of industry andregulatory changes for global clients.
KPMG’s Global network of firms
155 countries
over 174,000 staff

Netherland
SwedenFinland
United Kingdom
PolandCanada
IrelandGermany
FranceUnited States
Switzerland South Koreaof America
Italy
China
Japan
Spain Luxembourg
BermudaHong Kong
Cayman Islands
Singapore

Brazil

Evolving Investment
Management Regulation
In this report, we analyze thelatest trends of various
countries’ investment
management regulations anddiscuss the practicalchallenges affecting assetmanagers who address global
regulatory compliance issues.
Investing in the Future
In this report, we discuss theimplications invest managers
should consider whenaddressing global megatrends
that will affect the industry
sector.

Australia
South Africa

Financial Services
Asset Management Group
KPMG AZSA LLC
OTEMACHI FINANCIAL CITY South Tower
1-9-7 Otemachi, Chiyoda-ku
Tokyo 100-8172, Japan

The information contained herein is of a general nature and is not intended to address thecircumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of thedate it is received or that it will continue to be accurate in the future. No one should act onsuch information without appropriate professional advice after a thorough examination of theparticular situation.

TEL: +81 (3) 3548 5107
FAX: +81 (3) 3548 5109

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the JapaneseCertified Public Accountants Law and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swissentity. All rights reserved. 16-1108

financialservices@jp.kpmg.com

The KPMG name and logo are registered trademarks or trademarks of KPMG International.