Easing of entry regulations for asset management companies (summary of mass media report)

Financial Services Agency (FSA) will amend the Investment Trust Law and other relevant laws in 2024 so that asset management companies will no longer be required to own administrative function. It will become easier to establish asset management companies.
- Currently, each asset management company must have its own administrative function.
- The costs associated with the administrative function include the cost of recruiting compliance personnel, calculating base prices and investment results, preparing monthly reports, etc. These costs make it difficult to establish an asset management company.
- This reform will lead a variety of asset management companies will be established, including asset management companies that are strong in specific fields such as financial derivatives and unlisted stocks, and small-scale asset management companies.
- Under this reform, asset management companies will outsource the administrative functions.
- FSA will supervise the outsourced companies which are in charge of administrative functions to ensure the quality of their operations.