Japan Financial Services Agency promulgates special zone amendment exempting certain professional venture funds from fund audit requirements

Japan Financial Services Agency has promulgated an amendment to the Cabinet Office Ordinance that sets special provisions for FSA-related regulated businesses under the National Strategic Special Zones Act, removing fund audit requirements for certain “venture funds for professionals” when conducting “Special Business for Qualified Institutional Investors, etc.” in a National Strategic Special Zone under the zone’s asset management project framework. The exemption applies where the operator is specified in the relevant regional plan and has its main business office or other office in the zone, and conducts the business at an office in a Special National Strategic Zone as the implementing entity of the National Strategic Special Zone Asset Management Project, etc. The amendment follows a public comment process that ran from 27 February to 29 March 2026 and received one comment, alongside other feedback not directly related to the amendment. The amended ordinance takes effect on 22 April 2026. The special provisions apply only to entities designated as implementing entities in regional plans prepared by the National Strategic Special Zones Council and approved by the Prime Minister; firms seeking to implement a specified project must apply through the Council’s procedures, with any public calls announced on the Cabinet Office website.