JSDA has established many types of self-regulatory rules to be applied to Association Members to enhance fair and smooth execution of the financial instruments business in order to promote the efficient administration of securities markets.
The major rules cover OTC transaction of stocks and bonds, underwriting of securities, off-exchange transaction of listed stocks and others, foreign securities transactions, safe custody of securities, business conduct of officers and employees, internal administration systems, qualification and registration of sales representatives, advertisements, investment solicitation and customer administration, financial instruments agency business, segregated custody of customers’ assets, treatment of disputes with customers and unified accounting standards, etc. of Regular Members.
JSDA conducts on-site inspections in relation to internal administration system and compliance with the statutory laws and regulations and/or self-regulatory rules concerning the business activities of Association Members. JSDA also monitors the business conditions and segregated custody of customers’ assets of Regular Members.
In cases of violation of statutory laws and regulations and/or JSDA’s self-regulatory rules by Association Members and/or their officers and employees, JSDA strictly enforces self-regulatory disciplinary actions in order to avoid the recurrence of such violations.
JSDA conducts qualification examinations for securities sales representatives and regulatory training courses such as Qualification Renewal Training in consideration of the high public status of the financial instruments business and the importance of its social obligations, and carries out registration of securities sales representatives, which is entrusted to it by the Commissioner of the Financial Services Agency.
JSDA provides counseling services relating to customers’ complaints concerning the business of Association Members and financial instruments agents, and also provides mediation services under the FIEL to settle disputes over securities transactions, etc. between Association Members and their customers.
As an Authorized Association for Protection of Personal Information under the “Law concerning Protection of Personal Information”, JSDA takes measures to ensure the proper treatment of personal information by Association Members.
- In anticipation of the coming era of direct financing, JSDA is considering securities settlement system and other system reforms for the overall securities market to cope with the needs of investors and issuers. JSDA is also engaged in the preparation of trading rules for the equity market and takes necessary measures for newly introduced financial instruments such as securitization related products, as well as providing the major market administrative operations mentioned in 7 to 9 below;
Public and corporate bonds are mostly traded on the OTC market in Japan. To enhance fair and efficient bond transaction, JSDA is trying to improve the OTC bond market by establishing or revising systems or business practices related to OTC bond transactions.
JSDA is engaged in necessary system reforms to make the system for transactions of listed stocks outside the financial instruments market of an exchange more fair and efficient and to ensure investor protection.
JSDA is engaged in investor protection by establishing necessary rules in order to ensure fair and smooth transactions related to shareholders community, equity-based crowdfunding business, Phoenix issues, and other unlisted stocks, etc.
To build a financial instruments market capable of gaining the highest confidence of investors and to contribute to Japan's economic growth and development, JSDA is carrying out research projects and studies about system and taxation issues on financial instruments businesses and markets, and presenting proposals to the government and other related parties toward the realization of the results of those investigations. One of the main issues that JSDA is advocating is more desirable taxation systems for financial and securities transactions.
To improve investor confidence in and vitalize the securities market, JSDA is engaged in the establishment of common infrastructure such as systems in the securities market.
JSDA compiles data reported by Association Members on transactions outside financial instruments market of an exchange and announces them over the Internet. Moreover, JSDA provides Association Members and investors with useful information by publishing real time information concerning quotations and concluded contracts, etc., on proprietary trading systems (PTSs) for listed stocks etc. through the Internet, and by publishing statistical information on PTSs through the Internet.
JSDA promotes the dissemination of knowledge, understanding and public awareness of financial instruments and financial indices as well as financial instruments markets within each class of Japanese.
JSDA promotes various policy measures by maintaining good liaison between Association Members and other related organizations and mediating various opinions.
To improve the proficiency of officers and employees of Association Members, JSDA executes various educational training programs including statutory training and supports the dispatch of lecturers to in-house training courses held by Association Members.
To cope with the globalization of financial and capital markets, JSDA participates in international conferences such as the International Council of Securities Associations (ICSA), the Asia Securities Forum (ASF), and the International Organization of Securities Commissions (IOSCO), and also conducts exchanges of information and builds relationships with overseas securities industry related associations etc. In addition, JSDA promotes the Japanese market abroad, responds to overseas inquiries and collects relevant information.