Japanese Securities Firms to Consolidate Administrative Work

Tokyo, Jan. 5 (Jiji Press)--Securities firms in Japan will set up a joint venture this month to consolidate administrative work to improve efficiency as they grapple with labor shortages and complicated regulations.

The new firm, to be established by the Japan Securities Dealers Association and member securities firms, will accept contracts for undertaking procedures related to foreign stocks, account openings and inheritance and re-entrust them to specialized contractors.

The joint company will start handling tasks related to foreign stocks in July, those for opening accounts in January 2027 and those related to inheritance in October 2028.

When foreign companies are spun off, securities firms need to assess the values of their shares for tax purposes, based on the laws and regulations of countries concerned.

"Handling foreign stocks require a lot of work and expertise," an official at a midsize securities firm said. "If the new company handles all the work together, that would be very helpful."

[Copyright The Jiji Press, Ltd.]