RegTech Intelligence

RegDelta alert no 2: Latest FIEA FAQ published

JWG analysis.

This month the Japanese Financial Services Agency published their latest FAQ on the Financial Instruments and Exchange Act (FIEA).

The current version of FIEA was approved and enacted in June 2006.  It aims to: make Japanese financial and capital markets more adaptive to environmental change; promote investor protection and improve competition; ensure that markets work correctly to fully promote investment in Japanese markets. 

We have this latest FAQ loaded in our RegDelta trading library and will incorporate it into our analysis as we continue to model G20 regulatory reform.   

By using our detailed RegDelta trading ontology, we can bring you some initial analysis of this latest regulatory document:

  • In terms of topic areas, the FAQ shows substantial cross-over with the EU’s recently published MiFID II.  Our RegDelta trading ontology shows 89% of the topics discussed in the FIEA FAQ also come up in MiFID II
  • The most eye-catching areas of cross-over include disclosures to clients and investors, governance and controls and reporting
  • There is, however, a huge amount in MiFID II that the FAQ does not cover, most notably algo trading, clearing and transparency.

Since the FAQ relates to a pre-existing regulation, the advice contained within it is effective as of now.

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