Introduction Of Fair Disclosure Rules In Japan

1. Introduction

A bill amending the Financial Instruments and Exchange Act, the main statute codifying securities laws and regulating securities companies in Japan, including new rules requiring fair information disclosure by listed companies, etc. to investors (the "Fair Disclosure Rules"), was passed and enacted at the plenary session of the Upper House on May 17, 2017 (the "Amendment"). The Amendment will go into force on the day set forth by Cabinet Order not to exceed one year from the promulgation date (May 24, 2017). This newsletter offers commentary on the background of the Amendment, key points of the Fair Disclosure Rules, and anticipated moves by the authorities going forward.