Contents
- Background
- How is a Type 1 License "simplified"?
- What business activities are permitted under a
"simplified" Type 1 License?
- What is the scope of "unlisted securities"?
- What is the scope of "professional investors"?
- Key takeaways
1. Background
On May 15, 2024, the Diet passed into law amendments to the
Financial Instruments and Exchange Act (the "FIEA") (the
"Amendments"). While the Amendments contain many
important measures, one of the noteworthy measures is to deregulate
the requirements for the registration of a Type 1 financial
instruments business (a "Type 1 License") under the FIEA
for a person who engages only in the distribution of unlisted
securities to certain professional investors. The proposed
subordinated regulations under the Amendments relating to the
introduction of a new special intermediary business operator
license dealing with unlisted securities, which is the so-called
"simplified (or attenuated)" Type 1 License,
