The Securities and Exchange Surveillance Commission has formulated and published its basic policy for securities monitoring in FY2025.
As basic verification items, the Commission will focus on the establishment of internal management systems emphasizing appropriate investment solicitation based on suitability principles, and examine sales situations based on customer-oriented business operations. In response to the legalization of good faith and fair business practices that promote customers' best interests, the Commission will verify whether financial instruments business operators and others are conducting business reliably and fairly for their customers. Additionally, in light of the diversification of financial products, including the introduction of publicly offered investment trusts incorporating unlisted stocks, the Commission will confirm whether companies have appropriately established internal rules regarding target customer settings and customer explanations for complex or high-risk products, and whether they are properly monitoring compliance with these rules.
The Commission will also verify the adequacy of cybersecurity measures based on cybersecurity guidelines in the financial sector, and system risk management accompanying the advancement of digitalization. Given the severity of recent cases of unauthorized access and fraudulent transactions in internet trading, the Commission will conduct focused verification to ensure that appropriate measures for internal management systems, security assurance, and customer response are being taken for prevention of recurrence and proactive prevention.
The article demonstrates that the Securities and Exchange Surveillance Commission is strengthening its supervisory functions over financial instruments business operators and others, aiming to enhance investor protection and ensure market integrity.