ACTION REQUESTED
February 13, 1997
TO: INTERNATIONAL COMMITTEE No. 7-97
RE: JAPANESE PROPOSALS FOR FINANCIAL SERVICES DEREGULATION
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As we previously informed you, Treasury Department officials have asked for the
Institute’s views on market access issues in Japan for use in discussions with Japanese officials
about Japan’s intentions to further liberalize its financial services market. (See Memorandum to
International Committee No. 42-96, December 6, 1996).
Attached is a memorandum prepared by the Treasury Department that describes the
specific deregulation proposals under consideration in Japan. Treasury has asked us to review
the memorandum and identify the issues of most importance to US firms.
We have advised Treasury previously of the need for Japan to permit foreign
investment managers to use the services of their overseas affiliates in servicing Japanese
investment trust clients and to simplify the partnership structure required for managing public
pension plan assets. We have also commented that the absence of a credible system of
performance measurement for Japanese investment trusts remains a problem that adversely
affects the ability of investment trusts to advertise performance in Japan. We plan to advise
Treasury that these issues, and the deregulation proposals to expand market access to Japan’s
pension plans and simplify Japan’s investment trust regulations, remain the matters of greatest
priority to Institute members.
Please review the asset management proposals described in Treasury's memorandum
and provide us with any comments that you may have by February 24, 1997. Senior officials of
the Treasury Department will discuss these proposals with Japanese officials in early March.
You can reach me by phone at 202 326 5826 or by fax at 202 326 5839.
Mary S. Podesta
Associate Counsel - International
Attachment (in .pdf format)