Japan Financial Services Agency establishes management guarantee information network for M&A and business succession

The Japan Financial Services Agency has established the Management Guarantee Information Network at the Time of M&A and Business Succession, creating a consultation and information-sharing channel for cases where management guarantee agreements may obstruct a sale of a business or a succession process. The network is intended to connect managers, successors, financial institutions and credit guarantee associations so they can share information, discuss the necessity and handling of guarantee agreements, and support smoother execution of M&A and business succession. Eligible users include managers and successors involved in planned or completed M&A or business succession who have guarantee obligations linked to corporate debt, as well as financial institutions and credit guarantee associations that have entered into, or expect to enter into, such guarantee arrangements. Consultations must be submitted using the agency's forms and require the consent of the relevant parties for information sharing. The Financial Services Agency notes that the network will not mediate individual cases or guarantee outcomes such as the termination of a guarantee contract, and submissions that fall outside the network's purpose or contain deficiencies will not be accepted.