Japan plans to introduce more stringent checks on investment funds, making all operators subject to inspection following consumer complaints about inadequate protection, an official said Monday.
The Securities and Exchange Surveillance Commission is drafting new guidelines that will cover buyout, hedge and real estate and other funds under a new financial instruments law due to take effect in September.
"Many of those funds are not subject to government inspection now. The legal change was made as public concerns about appropriate investor protection and regulations have grown," said an official at the commission.
Fund managers often complain that Japan's regulations are already excessive and the government is looking at ways to make Tokyo a more attractive financial centre in competition with Singapore and Hong Kong. According to the Nikkei business daily, under the new guidelines inspections will not be carried out regularly but when fraud is suspected. Funds aimed at institutional investors will face less stringent reviews than those targeting general investors.
Comments
Comments are closed for this article.