Japan's Financial Services Agency Publishes ''Eleven Misunderstandings About The Internal Control Report System''

The Internal Control Report System, which is applied from fiscal years beginning on or after April 1, 2008, aims to strike a balance between efficiency and effectiveness so as to avoid imposing excessive cost burdens on relevant companies.

It is said, however, that there are still cases in the practice where excessively conservative attitudes are apparent. To address the situation, the Financial Services Agency (FSA) reiterated the original intent of the Internal Control Report System by publishing “Eleven Misunderstandings about the Internal Control Report System” on March 11, 2008.

The FSA also published the outline of administrative measures for smooth implementation of the Internal Control Report System.

(Attachment 1)	Eleven Misunderstandings about the Internal Control Report System (Provisional translation)(PDF:40K)
(Attachment 2)	Administrative Measures for Smooth Implementation of the Internal Control Report System (Provisional translation)(PDF:54K)