ICI Global Submits Response to Japan FSA Consultation on Supervisory Guidelines for ESG Investment Trusts

[34849]

TO: ICI Members
ICI Global Members
ESG Task Force
Global Regulated Funds Committee - Asia SUBJECTS: ESG
International/Global RE: ICI Global Submits Response to Japan FSA Consultation on Supervisory Guidelines for ESG Investment Trusts

 

ICI Global submitted the attached response to a consultation from Japan Financial Services Agency (FSA) on proposed partial amendments to the comprehensive supervisory guidelines for financial business operators regarding ESG Investment Trusts.[1] The proposed revisions seek to provide regulatory guidance on the disclosures and conduct of ESG Investment Trusts.

ICI Global welcomes the FSA's principles-based approach, in particular, the recognition of the importance of interoperability with other global counterparts when developing the disclosure requirements for ESG Investment Trusts.

Our letter encourages continued open dialogue between the FSA and ICI Global and its members during the implementation phase of the revised supervisory guidelines. The letter also recommends the FSA generally deem compliance with the FSA disclosure requirements in cases in which a foreign ESG fund meets the relevant ESG disclosure requirements of its home jurisdiction. Finally, the letter seeks clarifications on the scope of coverage, disclosure requirements, and due diligence on ESG ratings and data providers.

 

Lisa Cheng
Senior Research Analyst
ICI Global
 

Notes

[1] See Draft of Revised Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. [Provisional English translation] ("Draft Amendments"), available at https://www.fsa.go.jp/news/r4/shouken/20221219/02.pdf. Also See ICI Memorandum [34799], dated January 13, 2023, available at https://www.ici.org/memo34799.