Firewalls

Committee:
Banking
status:
No progress
Published:
Since the introduction of Japanese Firewall Rules in 1992, restrictions on information sharing have been an obstacle for financial groups that run multiple entities such as banks, securities, asset management firms under the same umbrella and wish to efficiently operate their businesses. Although the FSA deregulated the rule in 2022, allowing for greater flexibility, the dual registration of sales personnel (e.g., for both bank and securities entities) is still not permitted.

Recommendations

  • In the context of efforts towards “Customers’ Best Interests Business Conduct” actively promoted by Japanese authorities, the EBC encourages Japan’s Financial System Council Working Group to restart the discussion, under the auspices of the FSA.