Japan FSA in Talks on Easing Financial Firewall
Tokyo, June 3 (Jiji Press)--Japan's Financial Services Agency has started talks on easing the country's financial industry firewall, which bans banks and securities firms in the same groups from sharing information on mergers and acquisitions and other matters related to client firms without their prior consent, it was learned Thursday.
The FSA is specifically considering greatly simplifying procedures for financial groups to obtain such consent from client firms, informed sources said.
Subject to the easing of the rule will be large client companies, according to the sources. The FSA will present the plan at a working group meeting of the Financial System Council this month.
A draft worked out by the agency says that banks and securities houses will be allowed to share information on large client firms as long as the companies do not reject the moves if the possibility of such information sharing is announced in advance.
Sharing of information may be allowed if such possibility is explained on the websites of banks, for example, financial industry sources said.
[Copyright The Jiji Press, Ltd.]