Application Procedures for an Applicant Seeking Approval as an FIP in the JGB Book-Entry System

Effective from:

June 1, 2001

Revision:

July 15, 2005
January 11, 2006
July 14, 2006
January 1, 2007
October 1, 2007
January 5, 2009
July 17, 2009
October 29, 2010
July 15, 2011
March 31, 2013
June 30, 2016
June 30, 2017
January 15, 2019
July 1, 2019
March 25, 2022
March 31, 2023
September 8, 2023

Upon receiving an application from an entity seeking approval as a Foreign Indirect Participant in the JGB Book-Entry System (hereinafter referred to as an "FIP") based on the Act on Book-Entry Transfer of Company Bonds, Shares, etc. (Act No. 75 of 2001) (hereinafter referred to as "an applicant"), the Bank of Japan (hereinafter referred to as "the Bank") reviews the Application Form to determine whether the applicant fulfills the requirements set out in the "Requirements for Establishing Direct Participants' Accounts and Customers' Accounts and Requirements for Approval as Indirect Participants and Foreign Indirect Participants in the JGB Book-Entry System" (effective from January 27, 2003).

When the Bank determines that the applicant fulfills the requirements above and receives the necessary documents listed in paragraph 4 below, it will grant approval as an FIP.

An applicant should follow the procedures below.

1. Assignment of the Contact Person in Japan

Please appoint a Contact Person in Japan.

A Contact Person in Japan means any entity (e.g., a Direct Participant), who communicates with the Bank for the applicant relating to the JGB Book-Entry System and who has an address in Japan (Article 5, Paragraph 3, Item 5 of the "Rules Concerning the JGB Book-Entry System"). The Bank will contact the applicant via the applicant's Contact Person in Japan and send documents such as regulations relating to the JGB Book-Entry System to the applicant via the Contact Person. This also applies after the applicant becomes an FIP.

In order to ensure smooth communication, each FIP can appoint only one Contact Person in Japan at a time.

2. Submission of the Application Form

An applicant should complete the Application Form (Attachment 1 [ZIP 276KB]) and submit it to the Bank's Operations Department by email via the applicant's Contact Person in Japan appointed in paragraph 1 above, prior to submission of other documents such as a Letter of Intent (see paragraph 6 below). The Bank may request submission of additional documents when the Bank determines it necessary.

Regarding the Application Form for confirmation of operational capability, note that the Annex that is required to be submitted will differ depending on whether or not the applicant outsources its Operations.

3. Review of the Application Form by the Bank

By reviewing the Application Form, the Bank will determine whether the applicant fulfills the requirements for approval as an FIP, for example the applicant's financial condition and operational capability.

The Bank may, in reviewing the Application Form, ask the applicant via the Contact Person in Japan for additional information in order to verify and supplement the information provided in the Application Form.

4. Preparation of the Letter of Intent and Other Documents

The applicant is asked to prepare for submission of the documents listed in (a) to (e) below upon request from the Bank.

The applicant needs to transmit draft documents (unsigned) to the Bank via email for documents listed in (a), (b) and (e), and also transmit the documents listed in (c) and (d) to the Bank by email.

(a) Letter of Intent

A Letter of Intent stating the applicant's intent to be approved as an FIP and its request regarding the Designated Participant with whom the applicant wishes its account to be established.

Note: An FIP must have its account established with a Designated Participant. A Designated Participant may be a Direct Participant, an Indirect Participant, or an FIP. Upon request from an applicant, the Bank will designate a Designated Participant for that applicant.

The Bank will provide the applicant with a specified form of a Letter of Intent, and the applicant should fill it in.

(b) Representations (Attachment 2) [PDF 21KB]

The English translation has been prepared for convenience only. Note that the Japanese text is deemed as the original text and the applicant must submit the Japanese text of the Representations signed by the representative of the applicant.

The Bank may request submission of "Representations" of contents different from Attachment 2, as a result of the review of the applicant's financial condition, upon presenting the contents in advance.

(c) Commercial Register

A Commercial Register that officially confirms registration of incorporation or a copy thereof, or any document similar thereto.

Note: A printed copy of a Commercial Register in electronic form is also acceptable.

The Commercial Register must be either of the following:

(1) The Commercial Register either within 6 months from the creation date or before the expiration date stated in the document.
(2) The Commercial Register after 6 months from the creation date with the following items:
1. i) a statement that no update is needed to the contents of the document;
2. ii) a signature of a director or a corporate secretary, or any person similar thereto; and
3. iii) date of a signature of item ii) (a signature is valid for 6 months).

The Bank verifies the applicant's name and its head office's address by the Commercial Register.
If the address of the applicant's head office is not provided in the Commercial Register, please inform the Bank in advance.

(d) Certifications

Documents to be submitted by the applicant certifying the power and the signature of the authorized signatory of the applicant.

For example, an authorized signature list shall be accepted.

The Certifications must be either of the following:

(1) The Certifications either within 6 months from the creation date or before the expiration date stated in the document.
(2) The Certifications after 6 months from the creation date with the following items:
1. i) a statement that no update is needed to the contents of the Certifications;
2. ii) a signature of a director or a corporate secretary, or any person similar thereto; and
3. iii) date of a signature of item ii) (a signature is valid for 6 months).

A copy of the original Certifications shall be accepted with the following items:

i) a statement that the copy is an authentic copy of the original Certifications;
ii) a signature of a director or a corporate secretary, or any person similar thereto; and
iii) date of a signature of item ii).

(e) Letter of Agreement (When the Applicant Is a "Securities Clearing and Settlement System")

A written agreement to provide information requested by the Bank. The letter is necessary when the Bank has determined that the applicant is a "securities clearing and settlement system" as defined in the "Requirements for Establishing Direct Participants' Accounts and Customers' Accounts and Requirements for Approval as Indirect Participants and Foreign Indirect Participants in the JGB Book-Entry System."

The "securities clearing and settlement system" is requested to agree to submit information related to its clearing and settlement business on a continuing basis, so that the Bank can confirm, inter alia, the safety and efficiency of such business.

5. Verification by the Bank of Information Provided in the Letter of Intent and Other Documents

The Bank will verify whether or not the required items are stated and other matters regarding the documents listed in (a) to (e) of paragraph 4 above.

6. Submission of Letter of Intent and Other Documents

The applicant is asked to submit the documents (signed if necessary) listed in (a) to (e) of paragraph 4 above in writing upon request from the Bank via the applicant's Contact Person in Japan.

7. Granting of Approval to Become an FIP

When the Bank has decided to grant approval to become an FIP, it will send a notification of approval, by e-mail in principle, to the applicant's Contact Person in Japan and the applicant (only if the applicant had informed the Bank in advance of its desire to receive the notification of approval).
Depending on the type of business and the financial condition of the applicant, the Bank may, after consultation with the applicant, add certain conditions to the approval, as it deems necessary.

Inquiries

Banking and Government Securities Planning Group, Planning and Coordination Division, Operations Department

E-mail :