Major Activities
I. Self-regulatory Activities
1. Establishment and Execution of Self-regulatory Rules
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.
2. Execution of On-site Inspection and Off-site Monitoring
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.
3. Exercise of Self-regulatory Disciplinary Actions
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.
4. Qualification Examinations, Qualification Renewal Training and Registrations
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 requires Association Members to appoint the Sales Manager to each business unit to instruct and supervise officers and employees within the business unit to which he or she has been appointed as a Sales Manager so that compliance mindset with the FIEA and other laws and regulations is broadly prevailed, and so that customer management and business activities such as soliciting investors are properly carried out.
JSDA also requires Association Members to appoint the Internal Administrator in each business unit to perform proper internal administration by such means as constantly supervising to see if business activities at the sales unit to which he or she is assigned as the Internal Administrator are properly carried out in compliance with the FIEA and other laws and regulation.
5. Counseling concerning Customer Complaints over Securities Transactions, etc. and Mediation Services
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.
6. Execution of Operation as Authorized Personal Information Protection Association
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;
7. Improvement and Expansion of the OTC Bond Market
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.
8. System Reforms for Off-Exchange Transactions of Listed Stocks, etc.
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.
9. System Reforms for Unlisted Stocks, etc.
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.
II. Activities as Trade Association
1. Research and Study, and Representations on the Financial Instruments Market
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.
2. Establishment of a Common Infrastructure for the Securities Market
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.
3. Publication of Statistical Data, etc. regarding Equity and Bond Markets
- Collection and Publication of Statistical Data about the Equity and Bond Markets JSDA collects and compiles various information concerning equity markets and bond markets such as "Situation of the Equity Finance by Nationwide Public Companies" and "OTC Turnover per Type of Bonds", and provides useful material etc., for investors and Association Members.
- Publication of “Reference Prices (Yields) for OTC Bond Transactions” etc.
To provide a reference for investors and Association Members, JSDA publishes, through its homepage, "OTC Trading Reference Statistical Data" for about 5,600 public and corporate bonds and "Information on OTC Price Quotations" for about 50 corporate bonds targeting individual investors every business day.
4. Publication of Price Quotation, etc., regarding Off-Exchange Transactions
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.
5. Dissemination of Knowledge, Promoting Understanding and Public Awareness of Financial Instruments, Financial Indices and Financial Instruments Markets
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.
- Dissemination of knowledge and promoting understanding through school education system
JSDA produces and disseminates experience-type learning materials and provides a stock market game that enables students to learn practical economics through the mock buying and selling of stocks. JSDA also appeals to various related parties to strengthen their approach to securities and investment education as a part of consumer education programs for financial fields. - Dissemination of knowledge and promoting understanding among general public
JSDA works actively to expand the individual investors’ base by planning and holding commemorative events for Securities Investment Day (October 4) nationwide as well as seminars across Japan on securities investment etc. - Public Relations
JSDA works on raising public awareness of revisions or introductions of systems that are crucial for investors and financial instruments firms, and on conducting public relations activities to cope appropriately with the important challenges that the securities industry is facing.
6. Liaison and Mediation among Concerned Organizations
JSDA promotes various policy measures by maintaining good liaison between Association Members and other related organizations and mediating various opinions.
7. Implementation of Education and Training
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.
III. International Business and Exchange
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.