Overview of the new exemptions for fund managers operating in Japan

21 October 2021 | Applicable law: Japan

On December 23, 2020, as part of the International Financial Center Initiative – an initiative to further revitalizing the investment funds industry in Japan – the Working Group Committee of the Financial Services Agency of Japan (the JFSA) published proposed amendments to the Financial Instruments and Exchange Act of Japan (the FIEA) to introduce new exemptions: (1) the Foreign Investor Article 63 Exemption ; and (2) the Foreign Investment Manager Transition Exemption. The background of the two exemptions were discussed in the previous article Promotion of the Investment Management Industry of Japan: A Discussion on the Proposed New Exemptions by the JFSA Working Group Committee.

On May 19, 2021, the National Diet of Japan enacted amendments to the FIEA to implement these two exemptions (the “Amendments”) and on August 6, 2021, the JFSA released the draft language of the proposed regulations, which set forth further details to the Amendments that are anticipated to take effect later this year.

While further clarification is anticipated to be forthcoming from the JFSA through the release of its public comments, for the purposes of this Client Alert, we will provide a general overview of the two new exemptions based on publicly available information and discuss how these exemptions may impact the investment funds industry in Japan. Please kindly click here for the overview.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.