The Japan Financial Services Agency published minutes from the Financial Services Council’s Working Group on the Disclosure and Assurance of Sustainability Information, covering discussion of a draft report that sets out a proposed rollout of sustainability disclosure requirements for Tokyo Stock Exchange Prime Market issuers and a new framework for third-party assurance. On disclosure, the draft roadmap includes phasing based on Prime Market market-capitalisation thresholds, including companies between JPY 500 billion and JPY 1 trillion, and the working group revisited whether to extend the statutory deadline for submitting annual securities reports. The draft concludes it is appropriate to keep the current deadline of within three months after fiscal year-end, while using the existing extension approval mechanism flexibly to support implementation. On assurance, the draft frames a registration-based, profession-agnostic model for assurance service providers aligned with international standards, with the Corporate Accounting Council expected to deliberate assurance standards. It proposes registration requirements covering capability of engagement leaders, quality control arrangements and a minimum financial base, plus conduct rules such as rotation, restrictions on providing non-assurance services concurrently, and confidentiality obligations. Oversight would be conducted by the FSA for the time being, supported by administrative measures (including improvement and suspension orders and surcharges for false assurance), a civil liability approach including burden-of-proof provisions, and criminal penalties for confidentiality breaches, while also addressing how safe harbour treatment would affect assurance-provider liability and proposing disclosures such as appointment rationale and assurance fees. The secretariat will prepare amendments reflecting comments from members and circulate revised text for confirmation, with the working group’s results to be reported to the Financial Services Council; the FSA also signalled it will move forward with system development, including legal revisions, in line with the report.
Japan Financial Services Agency 2026-01-30
Japan Financial Services Agency working group outlines draft phased sustainability disclosure rules and profession-agnostic assurance regime
The Japan Financial Services Agency released minutes from the Financial Services Council’s Working Group on sustainability disclosure, detailing a draft report for phased disclosure requirements for Tokyo Stock Exchange Prime Market issuers and a new assurance framework. The draft maintains the current deadline for annual securities reports, proposes a registration-based model for assurance providers, and outlines oversight and liability measures, with the FSA planning system development and legal revisions.