Japan’s FSA Releases Updated Program For Conducting Audits of Bank, Brokerages
By Toshio Aritake
TOKYO—The Japanese Financial Services Agency May 24 released an updated program for conducting audits and examinations of banks, brokerages and other financial services providers to achieve greater transparency and increased efficiency.
The program was last updated in 2008.
Audits and inspections are aimed at depositor protection and maintaining financial system stability. Among the institutions affected are commercial banks, insurance providers, bank and other financial services holding companies, loan companies and other financial service providers.
The updated program clarified definitions of bank audits and included release of draft audit plans and procedures before performing actual audits. and other related work, such as data collection and analysis.
The program said that the purpose is a more transparent process of examining the institutions to achieve a higher level of analysis of products and services and market, liquidity and credit risks. The new audit regime covers how penalties will be assessed including delivery of corrective actions; and how the institutions may respond to inquiries about regulations.
The FSA plan related to securities and exchange surveillance and supervision includes drafting inspection plans and procedures; and conducting inspections of financial instruments trading entities, the plan said.
The plan included an update clarifying that financial regulatory authorities’ duties will include detecting stock issues that have abruptly risen or fallen, to detect when such market activity results in significant impacts on investors and stated that the regulators can demand information and data from brokerages, banks and other financial units. …