Japan’s Financial Services Agency (FSA) announced its priorities over the next year to June 2026 across three pillars: contributing to sustainable growth through enhancing financial functions; ensuring trust in a stable, fair and secure financial system; continuously evolving as a financial regulator that serves the public.
In pillar 2, the FSA discussed contributing to global regulatory and supervisory discussions. “As crypto-asset trading and non-bank financial intermediaries (NBFIs) continue to grow globally, discussions surrounding international standard-setting bodies are gaining momentum. In order to ensure effective and consistent global regulations, the FSA will actively participate in discussions at international forums and reinforce our cooperation with regulators in other jurisdictions to bolster our policy influence. Through these efforts, the FSA will aim to contribute to global discussions by offering constructive proposals rooted in domestic deliberations and leverage insights gained from international policy dialogues to address domestic challenges.”
In terms of addressing emerging risks, the FSA wrote: “In the context of societal and technological transformation, [financial institutions] are increasingly exposed to a wide range of risks and challenges that extend beyond traditional domains, such as credit and market risks. In response to the non-financial risks that are commonly faced by a large number of [financial institutions], such as money laundering and cyber threats, the FSA will implement necessary measures across the financial sector in coordination with relevant industry associations.”
Under the third pillar, the FSA aims to reorganize the Supervision Bureau into a two-bureau structure to “promote the sound development of businesses, foster innovation, and further enhance the sophistication of its supervision”.
This will involve “establishing a bureau responsible for asset management and insurance supervision to closely coordinate the supervision of both sectors and restore trust in the insurance sector”, with another bureau for “banking and securities supervision to further enhance group-wide supervision”.