JAPAN: Japan FSA amends Financial Instruments and Exchange Act

Thursday December 8 2011

Further to the previous update, the FSA published the a Draft Cabinet Order for Partial Amendment of the Order for Enforcement of the Financial Instruments and Exchange Act on 24 June 2011, and solicited public opinions until 25 June 2011. On 26 August 2011, the Japan FSA published the results of public comments. The Cabinet Order was decided by the cabinet on 26 August 2011, and was promulgated on 30 August 2011, together with a related Cabinet Office Ordinance. The Cabinet Order and Cabinet Office Ordinance will came into force on 1 December 2011.The key points of the Cabinet Order and Cabinet Office Ordinance are as follows:

1. All participants in the public offering are prohibited from using the offered shares to settle a short position taken during the pricing period.

2. Securities companies are obligated to deliver documents intended to make public the content of the regulation mentioned in 1. above before allotting new shares.

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Previous Update – http://www.markets.funds-axis.com/newsArticle.asp?type=2&id=2007