The FSA finalized the amendments to the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." after public consultation.
The amendment is mainly intended to provide necessary amendments to the said Guidelines to expressly set forth that when a materiality policy* is established for a settlor company of an investment trust, the materiality policy must set out the appropriate levels of NAVs as well as the need for disclosure to investors.
* "Materiality policy" is a provision that stipulates that a revision of the net asset value of an investment trust will only be taken when there is a material error in its calculation.
In addition, the amendment is also intended to provide necessary amendments to the said Guidelines to expressly set forth requirements for real estate-related fund managers, such as a requirement to keep appropriate records of the process, etc. of considerations, etc. related to property acquisitions, etc., and to establish a system to eliminate inappropriate approaches to real estate appraisers.
