Professional management of pooled assets is becoming increasingly important in Japan, as the financial basis of the social security system steadily weakens. With the birth-rate at its lowest level ever and the post-war baby-boom generation starting to retire, even a sustained economic upturn with a potentially increased tax base would be unlikely to reverse the trend of decreasing revenues.
The proportion of Japan’s financial assets managed by investment management firms is relatively low compared to other major economies. By providing professional advice and innovative services in an increasingly complex market, global professional asset management companies are proving they can contribute to the more effective allocation of resources in the economy at large. The committee aims to bring changes to the regulatory and business environment to markedly increase the currently low level of penetration by investment management firms.