Japan’s Financial Services Agency: Partial Revision Of The "Reference Cases", Etc. Regarding The "Independent Agent Exemption" Of Fund Managers

Under the amendment to the Cabinet Office Ordinance on Definitions under Article 2 of the Financial Instruments and Exchange Act, a foreign investment manager who has difficulty in continuing its business in the foreign country can continue the business temporarily in Japan based on an approval by the commissioner of the FSA.

In order to clarify the requirements of the "independent agents" regarding the foreign investment manager approved by the commissioner of the FSA, the FSA has held discussions with the Ministry of Finance's Tax Bureau and the National Tax Agency. Based on the discussions, it has been confirmed that whether the foreign investment manager approved by the commissioner of the FSA is treated as an "independent agent" should be determined as well as a domestic investment manager conducting certain investment activities under a discretionary agreement with an offshore fund. The FSA has partially revised the "reference cases", etc. regarding the determination of an "independent agent."