New law on the sale of financial products in Japan

On 30th September 2007, the new "Financial Instruments & Exchange Law" will come into effect in Japan.

The new legislation will offer expanded protection to investors (i.e. consumers who purchase products including deposits & savings, insurance, securities etc. from financial institutions)

Under the revised Financial Products Sales Law, the scope of the duty of financial institutions to provide clear explanations in their sales materials, based upon the level of customers' knowledge, experience and financial status, will be enhanced.

Violations will result in liability for damages imposed on financial institutions, with losses presumed to incurred on the principal. Third party evaluation can prevent this.

JMI has a customized solution called FACT (financial advertising consumer tracking).

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