JAPAN: Japan Regulatory defines “Independent Agent of Fund Managers”

Friday June 27 2008

The Japanese Regulatory (FSA) has issued “reference cases” and a set of Q &A’s with regards to `Independent Agent Exemption` Of Fund Managers`.

The Reference cases contain scenarios illustrating the differing role of an Independent Agent of Fund Managers while the Q and A consists of Questions and Answers by way of examples that further clarify the role of an independent Agent.

The FY2008 Tax Reform introduced a provision that would exempt `independent agents` from those agents treated as permanent establishments (agent-PE) under domestic law (presumably related to Article 290 of the Cabinet Order for implementing the Income Tax Act and Article 186 of the Cabinet Order for implementing the Corporation Tax Act).

The FSA expects that these `reference cases` and the `Q &A` will contribute to making the Japanese financial markets more attractive internationally.