The Unibanco Letters - Dual-Hatting Regulations and Global Enforcement
The New Rule (Cont.)
Possibility of Relying on Other Exemptions or Arrangements
• In practice, many Article 63 filers have elected to file Article 63 Notifications even when such filings
may not have been strictly necessary, because of the:
- greater flexibility of Article 63 filers marketing activities in Japan, and
- minor cost and low administrative burdens.
However, under the new rules, an Article 63 Exemption is a much more complicated filing with
materially burdensome ongoing obligations.
• It may be recommendable to reexamine the Article 63 filers' existing business activities to confirm
if they need to continue to operate under the Article 63 Exemption
- if an LP Fund is closed for investment
- if a Type 2 Financial Instruments Business Operator has been retained
- if an LP Fund does not have any Japan investors
- if the composition of the Japan investors permits the use of the "de minimis exemption."
Morgan Lewis
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