Japan Compliance
Financial Instruments and Exchange Law (“FIEL”)
Enacted in 2006
- To substantially reform pre-existing securities regulations
- To have more comprehensive regulation of investment services including investor protection
Expansion of the Definition of Securities
- Traditional Securities – Bonds, shares etc
- Deemed Securities – Trust beneficiary interest, interests in collective investment structure
Application of FIEL to structured real estate finance transactions
- Deemed Securities – Instrumental to structured real estate finance transactions
- Registration of Financial Instruments Business Firm (“FIBF”) – Essential for conducting structured real estate finance business
| Category | Classification | Comments |
|---|---|---|
| Brokerage / Placement | Type 1 FIBF | Brokerage & public offering/private placement of traditional securities such as bonds and shares previously categorized as Securities Broker. |
| Brokerage / Placement | Type 2 FIBF | Limited to brokerage & public offering/private placement of Deemed Securities. More popular in real estate related industry. |
| Investment Management | Discretionary Investment Management | Conduct discretionary investment management business. Fund managers for mutual funds, J-REITs etc. |
| Investment Management | Investment Advisory | Limited to provide investment advice only. |