① Type 1 Financial Instruments Business
② Type 2 Financial Instruments Business
③ Investment Management Business
④ Investment Advisory and Agency Business
As suggested by the name, investment management involves controlling investment of assets in various stocks, bonds and other securities. These assets could, for example, be a fund with which you have been entrusted, or a bulk of capital gathered from various investors.
Compared with the work of an investment advisory and agency business, the operations of an investment manager come with a great deal more responsibility. This is due to the fact that investment managers are able to make final decisions concerning the investment of funds, going beyond an advisory role in investment decisions. This increased level of responsibility means that the registration process is harder for an investment management business than for an investment advisory and agency business, with more rules and regulations to be aware of also upon commencing operations.
Whether you are starting from scratch or hoping to bring an existing business to Japan, we can provide the support necessary for you to register for Japan’s Investment Management Industry. Before getting in touch, however, please take a look at the basic requirements below.
The following requirements must be met by those seeking to engage in Japan’s investment management industry.
N.B. These are general requirements and do not necessarily reflect the reality of what may be needed for your specific application.
Your organization must:
・Be a kabushiki kaisha (Japanese stock company) with the phrase ‘investment management’ stated in the ‘purpose’ section of its Articles of Association.
・Have a Board of Directors including at least 3 directors and 1 auditor.
・Capital and net assets of ￥50m+.
If you are an existing corporation, past financial statements will be scrutinized as part of the application process. If issues come to light which raise doubts concerning your financial ability to operate as a Financial Instruments Business Operator (e.g. excess debts, prolonged deficit), you may be asked to submit specific plans as to how to plan to solve the situation, or in some cases even have your application rejected.
Your business must have in place a team of people appropriate for carrying out investment management business operations.
・A Manager with experience and ability through which they can be judged fit to operator as an investment manager.
・Directors with sufficient understanding and experience of compliance and risk management, carrying out business with due attention to the supervision and guidance necessary to comply with the relevant laws (e.g. the Financial Instruments and Exchange Act) and possessing experience and knowledge of financial instruments business operations which allows them to do this.
・A Head of Investment Management with sufficient knowledge and experience concerning the assets which will be managed.
・A Head of Compliance with sufficient knowledge and experience of the field. N.B. Compliance and assets management must be controlled by clearly independent departments.
・An Internal Manager and/or any other personnel/organisational provisions necessary to ensure responsible management of internal affairs.
You must also be able to show that you will be able to carry out the appropriate management of areas such as accounting reports, disclosure, segregated management of assets, risk management and system maintenance.
※While the above provides a summary of the typical requirements for personnel, the type of team required will ultimately depend on the nature and scale of your operations.
Special Investment Management Related to Real Estate
If you are looking to deal in real estate securities such as trust beneficiary rights in additional to your investment management operations, you can do this by registering as a Real Estate Industry General Adviser.
In order to do this, you must meet both the requirements stated above as well as several additional requirements, such as employing a Judgement Manager.
Please get in touch for more details concerning this area of investment management and more.
*Please be aware that the contents of this site are naturally subject to change, meaning that we cannot guarantee their accuracy at the point of access.*
*For up-to-date information, please contact us directly.*