The Japan Financial Services Agency has promulgated amendments to the Enforcement Order of the Financial Instruments and Exchange Act, together with a related Cabinet Office Order, to make two substantive changes. The measures expand the scope of specified trust beneficiary rights that are not treated as securities under the Act and revise the definition of a parent company for insider trading rules. The change on trust beneficiary rights aligns the order with provisions on specific trust beneficiary rights introduced by the 2025 act partially amending the Settlement of Funds Act. For insider trading regulation, the parent company concept will now be based on whether a company controls the decision-making bodies of another company, rather than relying on statements in securities reports and similar disclosures. The draft was open for comment from December 26, 2025 to January 30, 2026 and received four comments. The Cabinet approved the order on May 19, 2026. The trust beneficiary rights amendment takes effect on June 1, 2026, and the insider trading amendment takes effect on July 1, 2026.
Japan Financial Services Agency2026-05-22
Japan Financial Services Agency promulgates Financial Instruments and Exchange Act order changes on trust beneficiary rights and insider trading parent company definition
The Japan Financial Services Agency has amended the Enforcement Order of the Financial Instruments and Exchange Act and a related Cabinet Office Order to expand the scope of specified trust beneficiary rights that are not treated as securities and to revise the definition of a parent company for insider trading rules. The trust beneficiary rights change aligns the order with the 2025 partial amendment of the Settlement of Funds Act, while the parent company concept for insider trading will now be based on control over a company’s decision-making bodies.