• Delay of the Effective Date to the Amendments to the Article 63 Exemption
  • August 6, 2014 | Authors: Tomoko Fuminaga; Yoshiyuki Omori; Christopher P. Wells; Koji Yamamoto
  • Law Firm: Bingham McCutchen Murase Sakai Mimura Aizawa Foreign Law Joint Enterprise - Tokyo Office
  • This Client Alert is an update to our client dated May 20, 2014 with respect to the proposed amendments (“Proposed Amendments”) to the regulations with respect to the “Special Business Activities for Qualified Institutional Investors” (the “Article 63 Exemption”) as set forth under Article 63 of the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended or supplemented from time to time).

    Notwithstanding that the original “anticipated effective date” of the Proposed Amendments set forth on the website of the Financial Services Agency of Japan (the “Japan FSA”) was August 1, 2014, the Japan FSA has yet to confirm the final language of the Proposed Amendments or publish its answers to public comments with respect to the Proposed Amendments.

    Over the past several days, our office has contacted the Japan FSA to confirm the status of the public comments and the effective date of the Proposed Amendments. In response to our inquiries about the effective date, the officer of the Japan FSA noted that the effective date of the Proposed Amendments is still “undetermined”. No information was provided as to the anticipated new effective date of the Proposed Amendments.

    Bingham Tokyo is closely monitoring the situation and will provide a further update when additional information concerning the new anticipated effective date of the Proposed Amendments is announced.

    As always, Bingham Sakai Mimura Aizawa is happy to respond to any questions regarding compliance with the Proposed Amendments and its impact on managers operating under the Article 63 Exemption.