Focal Points of “JSDA’s Major Work Plans for 2019-2020(July 2019)”

Realize a securities market that
contributes to the SDGs

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Promote medium- and long-term asset building through the NISA
schemes, etc.
Promote the expansion and dissemination of securities investment,
as well as the smooth transfer of assets between generations
Continue efforts toward financial and securities education

Deliberate the nature of the securities business inregional communities
Carry out initiatives that bolster the transparency andfairness of the markets
Carry out initiatives that ensure customer-oriented
business conduct
Review self-regulatory rules, etc. that contribute to
the efficiency of the securities business, based upon
the principles-based approach
Increase the use of unlisted stock

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Promote the proliferation of financial instruments
contributing to the SDGs (such as SDG bonds)
Promote the creation of a fulfilling workplaceenvironment as well as the empowerment of women
Support economically vulnerable children
Bolster relations and collaboration with overseasorganizations
Implement efforts to contribute to the SDGs throughcollaboration with universities, etc.

JSDA’s Major Work Plans for 2019-2020 (July 2019)
Promote individual financial asset-building that can support 100 years of life

Materialize the efforts towards the SDGs

1.

1.

2.

3.

Promote medium- and long-term asset building•
Ensure that the NISA schemes (general-type NISA, Dollar-Cost
Averaging NISA, Junior NISA) are made permanent, etc.
•
Actively popularize the Dollar-Cost Averaging NISA through TV
commercials, etc.
•
Promote asset building in the workplace•
Further develop the defined contribution (DC) pension plansystemPromote the expansion of securities investment•
Promote PR activities for asset building through stock investment•
Work toward the integration of financial income taxation (i.e.
aggregation of profits and losses including derivatives)
Create an environment that promotes the smooth transfer of risk
assets between generations

Investors(Individuals)

Spread and deepen financial and securities knowledge

1.
2.
3.

Promote financial and securities education in schools
Promote financial and securities education for working adults
Implement PR activities to prevent scams involving fake sales of stocks or corporate
bonds

Enable people to become more interested in securities investment

1.
2.

Conduct PR activities that improve the image of securities investment
Conduct activities related to the SDGs and social contributions through “Securities
Investment Day”

Strengthen financial and capital markets’ functions and competitiveness

1.
2.
3.
4.

5.
6.
7.

Respond to financial innovation
Increase the use of unlisted stockMarketUndertake initiatives aimed at the smooth introduction of the system(Infrastructure)
for requesting a paper copy under the electronic provision ofshareholders meeting materials
Improve the environment for expanding and diversifying thecorporate bond market
Respond to the establishment of a comprehensive exchange
Collaborate with the promotional activities of Organization of Global Financial
City Tokyo (FinCity.Tokyo)
Undertake initiatives aimed at ensuring and expanding the use of the Social
Security and Tax Number System

2.
3.
4.
5.
6.

Promote the proliferation of financial instruments contributing to theMarketSDGs (SDG bonds)
Intermediaries
Promote the creation of a fulfilling workplace environment and the(Members)
empowerment of women
Support economically vulnerable children
Undertake initiatives to increase the awareness and understanding of
the SDGs
Bolster relations and collaboration with overseas organizations (via the Asia Securities
Forum (ASF), etc.)
Implement efforts to contribute to the SDGs through collaboration with universities, etc.

Improve intermediaries’ functions and credibility

1.
2.
3.
4.

5.
6.
7.

Undertake initiatives to foster customer-oriented business conduct, etc.
Respond as necessary toward providing financial services that are fit for an aging
society
Conduct discussions in the “Committee for Thinking about the Future of the Securities
Business rooted in Regional Communities”
Exercise effective self-regulatory functions•
Make appropriate alterations to self-regulatory rules based on changes to thefinancial services environment•
Conduct agile and effective inspections of member firms•
Endeavor to further prevent insider trading
Undertake initiatives to combat money laundering
Find and analyze the problems in the use of financial services
Review self-regulation using the principles-based approach

Enhance global outreach and cooperation

1.

Actively conduct overseas public relations on the attractiveness andpotential of Japanese markets
Enhance cooperation and collaboration with relevant overseasorganizations, including support for emerging markets
Undertake initiatives to bolster collaboration between the Chineseand Japanese securities markets
Respond to global regulatory issues
Expand the provision of information in English

2.
3.
4.
5.

Overseas

Improve JSDA’s operations

1.
2.
3.

Strengthen business continuity planning (BCP) and cybersecurity
measures
Develop qualified human resources through strategic recruitment andtraining
Improve staff members’ work life balance

JSDA’sOperations

JSDA’s Major Work Plans(2019-2020)

July 1, 2019

© Japan Securities Dealers Association. All Rights Reserved.

Promote individual financial asset-building that can support 100 years of life

Investors(Individuals)

1.Promote medium- and long-term asset building• Ensure that the NISA schemes (general-type NISA, Dollar-Cost Averaging NISA, Junior NISA) are madepermanent, etc.

In order to promote asset building by citizens, work with related parties to ensure that the NISA
schemes (general-type NISA, Dollar-Cost Averaging NISA, Junior NISA) can be made permanent.
• Actively popularize the Dollar-Cost Averaging NISA through TV commercials, etc.
To promote medium- and long-term asset building, release a TV commercial for the Dollar-Cost

Averaging NISA, and implement other PR activities targeted at a wide range of people.
• Promote asset building in the workplace
In order to promote asset building through the Dollar-Cost Averaging NISA and the defined
contribution pension plan, etc. in the workplace, including for those who are not interested ininvestment, conduct publicity activities for companies and municipalities.
• Further develop the defined contribution (DC) pension system
Work with related parties to improve the system/business related to the DC pensions, in order tofurther proliferate the DC pension system.
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Promote individual financial asset-building that can support 100 years of life

Investors
投資者(Individuals)（個人）

2. Promote the expansion of securities investment• Promote PR activities for asset building through stock investment
Deliberate on and implement measures to spread the benefits of holding stocks, such as shareholder
incentives or dividend interest.

Through the JSDA website or social media outlets, implement publicity activities targeted at a wide
range of people specifically highlighting the appeal of stock investments to promote asset building.
• Work toward the integration of financial income taxation (i.e. aggregation of profits and losses including
derivatives)

In order to increase the investment options, as well as provide for more flexible investment (to avoidrisk), work with related parties to integrate financial income taxation.

3. Create an environment that promotes the smooth transfer of risk assets between generations
To facilitate the transfer of assets between generations, further the research on inheritance tax valuations,and work with relevant parties for necessary revisions of the taxation.
Also, based on the results of the studies into the joint account structure in the United States, conduct
further studies to support the efficient management and use of assets, as well as the smooth inheritance ofassets between generations amid an aging society.
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Spread and deepen financial and securities knowledge

Investors
投資者(Individuals)（個人）

1. Promote financial and securities education in schools
In order to enrich financial and securities education in primary and secondary education, continue toprovide information and supplementary materials to educators and schools. At the same time, deliberate
on further measures for support to schools after the implementation of the next school year’s curriculum,
which delves deeper into finance and securities ( junior high school: FY2021, high school: FY2022).

2. Promote financial and securities education for working adults
Conduct promotional and dissemination activities targeted at inexperienced and novice investors, suchas holding nationwide seminars, dispatching lecturers to workplaces/regional communities, or providing
information via the JSDA website.

3. Implement PR activities to prevent scams involving fake sales of stocks or corporate bonds
Carry out public street campaigns in major cities nationwide in collaboration with police, member firms,
regional finance bureaus, and consumer agencies to warn people about scams involving the fraudulent
sale of stocks or bonds.
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Enable people to become more interested in securities investment

Investors
投資者(Individuals)（個人）

1. Conduct PR activities that improve the image of securities investment
In order to increase the reputation of securities investment, conduct PR activities specifically aimed atthose who are not interested in investment (especially younger people), such as releasing a mini-TV
series or using the internet or radio.

2. Conduct activities related to the SDGs and social contributions through “Securities Investment Day”
Deliberate on and implement possible measures to support the activities for each securities firm in“Securities Investment Day”.
Also, in line with “Securities Investment Day”, provide an opportunity for those who are not interested ininvestment (especially younger people) to start thinking about securities investment by conducting eventsand releasing newspaper advertisements.
Moreover, in order to spread the awareness of securities firms’ activities related to CSR and the SDGs,
deliberate on and implement the creation of an “SDG/CSR Report” (tentative name).
Additionally, hold a networking event for the start of the platform connecting securities firms and NPOs, etc.
that support children.

4Strengthen financial and capital markets’ functions and competitivenessMarket(Infrastructure)

1. Respond to financial innovation
Based on the trends of financial innovation in Society 5.0, while furthering collaboration with relatedparties and gathering information, conduct research/studies on the impacts of financial innovation on the

securities industry.
Respond and adjust as necessary to the revisions to the Financial Instruments and Exchange Act, which
implement new regulations related to derivative transactions for crypto-assets and fundraisingtransactions.

2. Increase the use of unlisted stock
From the perspective of facilitating a smoother supply of risk money, deliberate on the nature offundraising that utilizes unlisted stocks (including the shareholders’ community system), while concurrently
considering the invigoration of local economies.
Monitor and conduct awareness raising activities regarding the equity-based crowdfunding andshareholders’ community system to ensure appropriate use of these schemes.

3. Undertake initiatives aimed at the smooth introduction of the system for requesting a paper copy
under the electronic provision of shareholders meeting materials
As underlined in the “Outline for the Companies Act Revision”, under the system for electronic provision ofshareholders meeting materials, deliberate on the method for the request for a paper copy of said materials.
5Strengthen financial and capital markets’ functions and competitivenessMarket(Infrastructure)

4. Improve the environment for expanding and diversifying the corporate bond market
Continue to review the reporting and publishing systems for corporate bond transactions, examining theirimpacts on corporate bond liquidity.

5. Respond to the establishment of a comprehensive exchange
Establish and make adjustments as necessary to the Articles of Association and self-regulatory rules
accompanying the establishment of a comprehensive exchange, and respond as necessary for themembership of Specified Business Members.

6. Collaborate with the promotional activities of Organization of Global Financial City Tokyo(FinCity.Tokyo)

In order to increase the international presence of the Japanese financial and capital markets, participate in

the Organization of Global Financial City Tokyo as both a voting member and a board member, andcollaborate with its promotional activities.

7. Undertake initiatives aimed at the sound introduction and expansion of use of the Social Security
and Tax Number System
Deliberate on the practical response to the tax reforms of FY2019 for the Social Security and Tax Number
System. Also, conduct awareness activities related to both the reformed system and the submission of theSocial Security and Tax Number to securities firms by customers.

6Materialize the efforts towards the SDGs

MarketIntermediaries(Members)

1. Promote the proliferation of financial instruments contributing to the SDGs (SDG bonds)
Undertake initiatives to further proliferate financial instruments contributing to the SDGs, in order tocontribute to the resolution of social challenges through the securities industry.

2. Promote the creation of a fulfilling workplace environment and the empowerment of women
To further promote improvements in working conditions and women’s participation in the
securities industry, establish a network for working women in the securities industry (the“Women’s Network”), and conduct seminars, lectures, etc. for the officers and employees ofmember firms.
3. Support economically vulnerable children
Undertake various initiatives by the securities industry as a whole that support and nurture
underprivileged children so they have hope for the future, such as participating in the “Used Book
Sale Donations for Children’s Futures”, managing the “Shareholders Incentives Endowment Fundfor the SDGs” that utilizes social contribution-type shareholder incentives, etc., as well as creatinga platform to connect member firms with NPOs, etc. that work on supporting children.
7Materialize the efforts towards the SDGs

MarketIntermediaries(Members)

4. Undertake initiatives to increase the awareness and understanding of the SDGs
In order to increase awareness of the SDGs among officers and employees of member firms, take actions
such as distributing SDG pin badges or information leaflets.
In order to increase awareness and understanding of the SDGs both in and outside Japan, engage inactivities such as working through the media (for example, releasing the SDG-themed television program“Future Runners”) to communicate information, as well as hosting/planning events.

5. Bolster relations and collaboration with overseas organizations(via the Asia Securities Forum (ASF), etc.)
To enhance the presence of the Japanese securities industry in contributions to the SDGs and effectively
carry out the various initiatives, actively engage in information sharing through activities such as
participating in UN-organized events. Also, within the Asia-Pacific region, accelerate the initiatives promoting
the SDGs in the ASF, as well as hold the third Green Bond Conference (co-hosted with ICMA) in Tokyo.
Actively undertake SDG-related initiatives at events or conferences outside of the Asia-Pacific region as well.

6. Implement efforts to contribute to the SDGs through collaboration with universities, etc.
In order to implement efforts to contribute to the SDGs through collaboration with universities, etc.,
deliberate and respond accordingly.
8Improve intermediaries’ functions and credibility

MarketIntermediaries(Members)

1. Undertake initiatives to foster customer-oriented business conduct, etc.
Compile and publish on a quarterly basis a list of securities firms which have adopted the “Principles for
Customer-Oriented Business Conduct”, and which publish their respective business approaches and KPIs,
pay close attention to trends in initiatives, and consider necessary responses.

2. Respond as necessary toward providing financial services that are fit for an aging society
In order to further promote intermediaries’ initiatives that make it possible to provide financial
instruments/services that are fit for an aging society, respond as necessary.

3. Conduct discussions in the “Committee for Thinking about the Future of the Securities Businessrooted in Regional Communities”
To provide opportunities for the management of the firms whose main business base is rooted in regional
communities to gather and conduct discussions about the future of the securities business from a broad
perspective, hold the “Committee for Thinking about the Future of the Securities Business rooted in Regional
Communities” and exchange views.

9Improve intermediaries’ functions and credibility

MarketIntermediaries(Members)

4. Exercise effective self-regulatory functions• Make appropriate alterations to self-regulatory rules based on changes to the financial services
environment
Review the JSDA’s self regulatory functions in response to advancements of business models affected byenvironmental changes, including making the methods of delivery/explanation for the document
delivered prior to the conclusion of a contract more logical, efficient, and easily understood.

• Conduct agile and effective inspections of member firms
Continue to conduct agile and effective inspections of the member firms looking at their businesses,
status of assets, and other garnered information in order to verify and check compliance with laws andself-regulatory rules, as well as to check on their internal administrative framework.
• Endeavor to further prevent insider trading

Continue to collaborate with market-related institutions to encourage listed companies to participate
in the Japan Insider Registration & Identification Support System (J-IRISS).

5. Undertake initiatives to combat money laundering
Toward the upcoming 4th Round of Mutual Evaluations of Japan by the FATF, implement initiatives tosupport appropriate response of securities firms to measures for anti-money laundering and countering thefinancing of terrorism.

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Improve intermediaries’ functions and credibility

MarketIntermediaries(Members)

6. Find and analyze problems in the use of financial services
Deliberate effective measures to prevent problems in the use of financial services by finding and analyzing
their details, and then undertake necessary countermeasures.

7. Review self-regulation using the principles-based approach
Comprehensively examine whether current self-regulatory rules are sufficiently effective using theprinciples-based approach, and review the regulations as necessary.

11Enhance global outreach and cooperation
Overseas

1. Actively conduct overseas public relations on the attractiveness and potential ofJapanese 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 others on the current situation and steps
being taken in the markets.

2. Enhance cooperation and collaboration with relevant overseas organizations, including
support for emerging markets
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. Exercise leadership topromote the role of the Asia Securities Forum (ASF), aiming to have the capital markets in the Asia-Pacificregion contribute to sustainable economic development. Concurrently, enhance technical assistance given
to related organizations in emerging markets by tapping into the Japanese markets’ expertise andexperience.

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Enhance global outreach and cooperation
Overseas

3. Undertake initiatives to bolster collaboration between the Chinese and Japanese securities markets
In addition to exhibiting leadership in collaboration with other organizations in hosting the China-Japan
Capital Market Forum in Japan, based on the cooperation framework agreement signed with the Securities
Association of China (SAC), bolster collaboration between the Chinese and Japanese markets primarily
through exchange of information, staff visits, and customized trainings.

4. Respond to global regulatory issues
Actively participate in discussions in the International Organization of Securities Commissions (IOSCO) andother international forums as well as appropriately respond to and collect information about global
regulatory issues pertaining to financial and capital markets in collaboration with related domestic andinternational organizations.

5. Expand the provision of information in English
Provide more information in English regarding the JSDA’s public documents as well as boards and otherconsultative bodies.
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Improve JSDA’s operations
JSDA

1. Strengthen business continuity planning (BCP) and cybersecurity measures
Ensure the effectiveness of BCP drills and continue to endeavor to sustain/increase the use of PDCA cycle(plan-do-check-act).
Concurrently, in order to properly cope with cyber attacks, enhance cyber resilience against the recent surge
in Targeted Email Attacks.

2. Develop qualified human resources through strategic recruitment and training
Develop personnel who can contribute to international affairs and interactions as well as securities
business by sending staff to overseas postgraduate schools. Also actively recruit female staff, aiming at
women’s empowerment.

3. Improve staff members’ work life balance
For every employee to fully demonstrate their capacity and continue to work with peace of mind, takesteps to strike a balance between work and private life.

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