An update on the rules and regulations governing the private placements of fund interests to Japan investors – January 2023

As we welcome the new year, we have prepared this article, which is an update to previous article from July 2019 on the rules and regulations governing the private placements of fund interests to Japan investors.

We have prepared this article with the hopes of informing our clients with the most up to date information regarding the regulatory landscape in Japan as we embark on this new year. 

While there have been no significant regulatory developments since July 2019 which would directly impact capital raising efforts, in this article, we wish to revisit the regulatory framework of Japan to discuss other options for capital raising in Japan. 

Specifically, this article will provide an updated overview of the following topics:

1. an overview of the fundamental financial instruments business operator registrations in Japan, as well as a discussion on the Securities Sales Intermediary registration;
2. the models of private placement of fund interests in Japan;
3. commonly used exemptions from the registration requirements; and
4. expansion of the JFSA Market Entry Office applicant criteria to include capital raising registrations.

Please click here to read the full version of this article.

As a solid understanding of the Japan regulatory landscape is essential to successfully engage in capital raising activities in Japan, we hope that the updates in this article will assist fund managers in beginning 2023 on a strong and successful note.

If you have any queries, please feel free to reach out to your usual Withers contacts or to Koji Yamamoto or Yoshiyuki Omori.