Japan’s Financial Intermediary Function Progress Report Released

On July 15, 2026, Japan’s Financial Services Agency (FSA) released a significant progress report on enhancing the financial intermediary function. This report is crucial for foreign entrepreneurs and business professionals as it outlines key developments in Japan’s financial landscape, which can impact access to funding and investment opportunities. Understanding these changes is essential for navigating the Japanese market effectively, especially for those with limited Japanese language skills.

Background & Context

The Financial Services Agency (FSA) of Japan is responsible for overseeing the country’s financial system, ensuring its stability and integrity. The agency has been actively working to enhance the financial intermediary function, which plays a vital role in connecting investors with businesses seeking capital. This initiative is part of a broader effort to stimulate economic growth and innovation in Japan. The current legal framework governing financial intermediaries includes the Financial Instruments and Exchange Act (Kin’yuu Shouhin Torihiki Hou) and the Banking Act (Ginkouhou), both of which have undergone various amendments to adapt to changing market conditions. The FSA’s recent progress report highlights the advancements made since the last major review in 2021, focusing on improving transparency, efficiency, and accessibility of financial services. Key milestones include the introduction of new regulations aimed at fostering competition among financial institutions and enhancing consumer protection. The report outlines specific measures taken to facilitate better access to funding for small and medium-sized enterprises (SMEs), which are crucial for foreign entrepreneurs looking to establish or expand their businesses in Japan.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Company Registration	¥150,000	$1,000	Includes registration fee and documentation
Notary Fee	¥50,000	$350	For notarizing company documents
Visa Application	¥4,000	$30	Business Manager visa application

1. Foreign Residents Already Operating a Business in Japan
For foreign entrepreneurs already established in Japan, the progress report indicates improved access to financial services and funding opportunities. It is advisable to review your current financial arrangements and explore new options that may be available under the enhanced intermediary framework. Ensure that your business is compliant with the latest regulations and consider consulting with a financial advisor familiar with the Japanese market. Failing to adapt to these changes could result in missed opportunities for growth and investment.

2. Foreign Nationals Planning to Establish a New Company
For those planning to set up a new business in Japan, the report suggests a more favorable environment for securing financing. It is essential to prepare a solid business plan that outlines your funding needs and potential returns. Engage with local financial institutions early in the process to understand the documentation required and the types of financial products available. This proactive approach can help mitigate risks associated with funding delays or rejections.

3. Foreign Investors Who Are NOT Residents of Japan
Investors outside of Japan should take note of the enhanced financial intermediary function as it may provide new avenues for investment in Japanese businesses. Research potential investment opportunities and consider partnering with local firms that can navigate the regulatory landscape effectively. It is crucial to stay informed about the evolving financial regulations and to seek advice from legal and financial experts to ensure compliance and maximize investment returns. Ignoring these developments could lead to missed investment opportunities or legal complications.

Step-by-Step: What You Need to Do

Step 1: Assess Your Current Financial Situation
Review your existing financial arrangements and identify areas for improvement. Contact your financial institution for advice. English support may be available.
Office: Financial Institution (English Support: Limited)
Cost: Free (¥0)
Time: 1 week
Pitfall: Overlooking potential new financial products

Step 2: Develop a Comprehensive Business Plan
Outline your funding needs, business model, and potential returns. Consult with a business advisor for guidance. English support is typically available.
Office: Business Advisory Service (English Support: Yes)
Cost: ¥50,000 (~$350 USD)
Time: 2-4 weeks
Pitfall: Incomplete financial projections

Step 3: Engage with Financial Institutions
Approach banks or financial intermediaries to discuss your funding options. Prepare necessary documents such as your business plan, financial statements, and identification. English support varies by institution.
Office: Bank or Financial Intermediary (English Support: Limited)
Cost: Free (¥0)
Time: 1-2 weeks
Pitfall: Incomplete documentation

Step 4: Submit Funding Applications
Complete and submit applications for loans or investments. Ensure all documentation is accurate and complete to avoid delays.
Office: Financial Institution (English Support: Limited)
Cost: Free (¥0)
Time: 2-4 weeks
Pitfall: Missing application deadlines

Step 5: Monitor Regulatory Changes
Stay updated on any new regulations or changes in the financial landscape that may affect your business. Regularly check the FSA website for updates.
Office: Self-monitoring (English Support: Yes)
Cost: Free (¥0)
Time: Ongoing
Pitfall: Ignoring minor regulatory updates

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
www.customs.go.jp/english/
www.nta.go.jp/english/
www.meti.go.jp/english/
www.fsa.go.jp/en/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	14 days	3 days	5 days	10 days
Minimum Capital Requirement	¥1	$1	$1	₩100,000
Corporate Tax Rate	30%	17%	16.5%	22%
Visa Processing Time	1 month	2 weeks	4 weeks	3 weeks

What to Expect Next

Looking ahead, foreign entrepreneurs and investors should monitor the FSA’s ongoing efforts to enhance the financial intermediary function. Key developments to watch for include potential new regulations aimed at increasing transparency and efficiency in financial services. Additionally, the FSA is expected to release further updates on its progress in the next year, which could provide additional insights into the evolving landscape. Entrepreneurs should stay informed and be prepared to adapt their strategies accordingly.

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Sources & References

This article is based on the following source and enhanced with professional analysis for foreign business owners.
Source: その他,金融仲介機能の発揮に向けたプログレスレポートについて公表しました。

⚠️ This article is for informational purposes only and does not constitute legal advice. Please consult a qualified Japanese attorney (bengoshi) or judicial scrivener (shiho shoshi) for advice specific to your situation.