Japan Aims to Attract Foreign Asset Management Firms

New York, Sept. 21 (Jiji Press)--Japanese Prime Minister Fumio Kishida said Thursday that his country will establish special business zones for asset management companies to encourage foreign players to launch operations in the country. In a speech in New York, Kishida also unveiled plans to correct Japan's business practices related to asset management and barriers to market entry, while easing regulations to facilitate new entry. "To encourage new entry from overseas, we will establish special business zones tailored specifically for asset management business where administrative procedure can be completed solely in English," Kishida said. "We will take measures to improve the business and living environment tailored to needs of overseas asset managers," he said. According to government sources, the government is considering a system in which municipalities seeking to create a special zone for asset management business apply for the designation by the state. In Japan, the net asset values of investment trusts held by asset management companies and trust banks are calculated on a daily basis, a process being criticized as cumbersome. A small number of system vendors that undertake the creation and operation of information systems for asset management dominate the market in Japan, and the standardization of the systems is not sufficient. These circumstances are said to have led to high costs for asset management services in the country. Against this background, Kishida called for correcting such practices and barriers, while offering support programs for new entrants. The government plans to submit necessary legislation to next year's ordinary session of the Diet, the country's parliament. Also in the speech, the prime minister said his government will launch an asset management forum to exchange opinions with investors from the United States and other countries as part of efforts to promote reforms reflecting international needs. END