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Today's Pick

Jul 26, 2017
byAkane Hashimoto

Japan Regulator Warns Small Banks They Must Change to Survive"After years of warning, our regulators probably wouldn't rescue those who might get in trouble." Japan's finance czar gets a rare 3rd term -- and 3 challenges"2017 will be a very important year for Japanese asset management industry." Most Japan firms reluctant to boost shareholder returns further: Reuters poll"Interesting to see how the monetary policy makers will react in case no further improvements of  balance sheet structure is seen." Japan’s regulator steps up disclosure duties for life insurers"This is big thing. Insurance companies will no more be able to aggressively sell their services to the companies they own."

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Recent News

Today's Pick

Jul 19, 2017
byAkane Hashimoto

Bloggers Are Japan Regulator's New Weapon in Fund Fight"Goal is to create an investment culture amongst "younger" generations. " 

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Noriyuki Morimoto's Blog

The Shock of Japanese ERISA

Jul 18, 2017
byNoriyuki Morimoto

On April 7th, Nobuchika Mori, Commissioner of the Japanese Financial Services Agency (FSA), gave a lecture in which he referred to the poor state of asset management for Japanese corporate pension plans. He first pointed out the reality that firms that manage corporate pension funds are largely selected according to friendly relationships between the company and financial institutions. His second point was that the personnel overseeing the pension fund is primarily decided according to the company’s personnel relocation policies, resulting in the assignment of people who lack any professional insight. Mr. Mori said that this situation surrounding corporate pensions is problematic from the viewpoint of fiduciary duty. He is making it clear that companies and pension funds have fiduciary duty in their relations with subscribers and recipients who are the end beneficiaries. In other words, by referring to the selection of management firms, Mr. Mori is saying that managers of corporate pension funds have strict duty of loyalty to pursue the benefit of their subscribers and recipients without taking the benefit of the employer into account. His comment on selection of personnel overseeing pension funds is about strict duty of care to ensure best asset management practices for the beneficiaries. Preceding Mr. Mori’s lecture, on March 30, the FSA announced a soft law titled “principle for client-oriented business operation” to drive the reform of asset management-related businesses. The term fiduciary duty is no longer used in the title, but before official disclosure, the preliminary title had been “client-oriented business operation (fiduciary duty)”, treating the two concepts as equal. Then, does Mr. Mori’s comment imply the FSA’s view that the “principle for client-oriented business operation” also applies to corporate pension funds? By replacing “clients” with “subscribers and recipients of corporate pensions”, is the principle directly applicable to corporate pensions? If that is the case, a major reform is bound to happen in Japan in the same way as when ERISA was introduced in the United States. It should have a huge impact on Japanese corporate management, and should be a chance for Japan’s asset management industry to take a great leap forward.

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Updates

Mar 20, 2017
byHC Asset Management

Our CEO Noriyuki Morimoto contributed an article to 20 March issue of Weekly Financial Affairs

 

Our CEO Noriyuki Morimoto wrote “What does the merger between Trust Companies of Mizuho Group and Mitsui Sumitomo Group lead to?” for 20 March issue of Weekly Financial Affairs

Mar 10, 2017
byHC Asset Management

Our CEO Norinyuki Morimoto contributed a chapter in the textbook for Kinzai’s remote learning program. Kinzai is a leading Japanese publication specialised in finance.

 

Our CEO Noriyuki Morimoto wrote the 1st Chapter “What is fiduciary duty?” for Kinzai’s textbook “Practical Application of Fiduciary Duty Principles”

Feb 01, 2017
byHC Asset Management

Our CEO Noriyuki Morimoto contributed an article to the February issue of Monthly Energy Forum

 

His article “[TEPCO] should strive to become a top global energy utility.” was one of the feature articles for “Big Bang after dismantling of TEPCO”

Dec 02, 2016
byHC Asset Management

Our CEO Noriyuki Morimoto spoke at "Insurance Risk Management Conference 2016" organised by Moody's Analytics

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