The Japan Securities and Exchange Surveillance Commission published its medium-term activity policy for its 12th term (2026–2028), setting out how it will conduct market surveillance and enforcement as markets become more complex, technology-driven and global, and as the investor base expands. The approach is structured around strengthening information collection and analysis, improving the effectiveness and efficiency of investigations and inspections, and reinforcing market discipline. Priorities include wider collection and use of market intelligence via information desks and self-regulatory organisations, aggregation and sharing of insights with the Financial Services Agency and finance bureaus, and more timely analysis across markets and products including derivatives and issuance and secondary trading. International cooperation is to be expanded through frameworks such as the International Organization of Securities Commissioners and direct engagement with overseas authorities. On investigations and inspections, the plan emphasises risk-based selection of inspection targets for financial instruments business operators, prompt action on unfair trading and disclosure violations with a view to surcharge payment order recommendations, cooperation with overseas authorities on cross-border cases and disclosure issues involving global companies, and use of criminal investigative powers and accusations for serious and malicious violations. It also highlights more proactive handling of investor harm cases, including improper sales and solicitation, and court injunction petitions against unregistered operators using social media advertising and those offering securities without required notification, as well as a stronger focus on atypical and new case types linked to digital technology and new financial products. To support delivery, the Commission plans to upgrade the infrastructure needed for greater use of digital technology, develop digital forensic equipment and skills, pursue strategic staff development and recruitment, draw on external expertise across areas such as law, accounting, systems, real estate and financial engineering, and deepen collaboration with regional finance bureaus.
Japan Securities and Exchange Surveillance Commission 2026-01-16
Japan Securities and Exchange Surveillance Commission publishes 2026–2028 activity policy to expand digital and cross-border market surveillance
The Japan Securities and Exchange Surveillance Commission released its medium-term activity policy for 2026–2028, focusing on enhanced market surveillance and enforcement amid increasing market complexity and technological advancement. Priorities include strengthening information collection, improving investigation efficiency, expanding international cooperation, and addressing investor harm with a focus on digital technology and new financial products.