SEBI – OECD, International Conference on Investor Education3-4 February 2012, Goa, India

Day 1 Session2 (14:00~15:00)An educated investor is a better protected consumer

Financial Education and Protection in Japan

Yoshitaka SAKAIFinancial Services Agency of Japan

Financial Services Agency (Japan)

The single financial regulator in Japan

• Legistration in financial sectors

• Supervisior of Banking Sector, Insurance Sector, and Securities Sectors

• Surveillance and Monitoring Securities Markets

SESC (Securities and Exchange Surveillance Commission of Japan) is a part of JFSA

The Mandates of JFSA

The Act of the establishment of JFSA (2000)

Article 3 (Mandates)

Ensuring Stability of Japan’s financial system

Protection of depositors, insurance policy holders and securities investors

Smooth finance

The Financial Literacy

Financial Literacy : the ability to understand finance

Without a financial literacy, investors cannot understand risks of financial products and reach to investor protection systems properly.

Therefore, a financial literacy is essential for investor protection and education.

The Policy Plan for Financial Literacy

Enhancing financial literacy of the public through promotion of better financial education

In order to promote market participation of retail investors who underpin financial and capital markets, enhancing the financial literacy (basic knowledge of finance, capacity to make use of financial services) of each and every Japanese citizen is essential. To this end, efforts will be made to further strengthen financial education in co-operation with relevant groups, including through distribution of textbooks and handbooks that contribute to understanding by a wider range of people of the basics of finance, and through arrangement of symposiums and seminars.

『Plan for Strengthening the Competitiveness of Japan's Financial and Capital Market』(Dec, 2007)

The Financial Education for each life-stage

For elementary school studentsFree Study Game(“Finance Land of Money-Boy”)

Text Book

The Financial Education for each life-stage

For junior-high and high school students

Free Study PC Soft Text Book

The Financial Education for each life-stage

For senior citizens

Text Book Warning Pamphlet of financial frauds

The Symposiums and Seminars

The protection system for consumers

One-Stop information center for consumers

・JFSA’s Counseling Office for Financial consumers

About 30 professional counselors About 200 contacts per a dayVarious questions about banking services,securitites, and insurances

The protection system for consumers

SRO’s arbitrator

Financial InstitutionConsumers

Fair 3rd-party Consultant System(ADR, Alternative Dispute Resolution System)

・ Support information gaps for consumers

Consumers can request 3rd party arbitratorfor SROsFinancial Institutions have to jointhe intermediation under laws.

The protection system for consumers

Legislations and regulations・ Update of Financial Instruments and Exchange Act

especially, in the aspect of Suitability Rule

・ Update of the Supervisory Guidelinesespecially, in the aspect of enforcement toward financial institutions