Investor Presentaiton
FIEA Registrations
(2 for Distribution and 2 for Asset Management)
• FIEA distinguishes between two major categories of securities:
-
11 Securities Defined in Article 2(1) of the FIEA: includes equity securities, debt securities, and most
derivatives; in general, investment funds in the form of trusts or shares are 11 Securities
12 Securities Defined in Article 2(2) of the FIEA: "less liquid" securities such as partnership and limited
partnership (LP) interests; in general, LP form funds will be characterized as 12 Securities
• There are four main business registrations under the FIEA:
1. Type 1 Registration: This registration permits a registrant to conduct the business of brokerage, agency, and
intermediation of 11 Securities (i.e., corporate and trust form funds).
2. Type 2 Registration: This registration permits a registrant to conduct the business of brokerage, agency and
intermediation of 12 Securities (i.e. LP, form funds).
3. Investment-Management Registration:
-
This registration permits a registrant to manage assets on a discretionary basis (DIM activities) for investors pursuant to an
investment management agreement.
This registration also covers an authority to manage domestic investment trusts/corporate funds.
A foreign manager may not enter into an asset management relationship with any Japanese investor directly; the manager
may only make such arrangements through a Japan registered Discretionary Investment Manager (DIM)
Firms that wish to invest actively in Japanese markets for non-Japanese investors from a Japan base require the Asset
Management Registration
4. Investment Advisory and Agency Registration:
1. The "Advisory" portion of this registration permits a registrant to conduct the business of giving investment advice for a
fee.
2.
The "Agency" portion of the registration permits and registrant to "intermediate" the conclusion of an Investment
Management Agreement or an Investment Advisory Agreement between a Japanese DIM and a foreign DIM.
Morgan Lewis
8View entire presentation