Governmentjp Official institution
Japan's FSA finalizes capital rule change on cancellable leases for securities firms
The Financial Services Agency (FSA) announced on October 30, Reiwa 8 that it had finalized changes to rules on how financial instrument business operators calculate their capital adequacy ratio. The draft was open for public comment from July 31 to August 31, Reiwa 8, and the FSA received 27 comments. The Cabinet Office ordinance and the notice took effect on the announcement date.
What does it mean?
Securities firms in Japan must hold enough of their own capital to cover risks, and this change sets how certain cancellable leased assets are counted against that capital. The rule is final and took effect on October 30, Reiwa 8.
Who is affected?
Financial instrument business operators and their subsidiaries that hold cancellable leases.