The Unibanco Letters - Dual-Hatting Regulations and Global Enforcement
Current Status
The Article 63 Exemption is broadly used and works well:
Type 1 Business Type 2 Business
Firm
280
Firm
1,157
Investment
Advisor/Agent
989
Investment
Manager
As of January 31, 2016
Article 63 Filers
342
2,723
⇒ The number of Article 63 filers has been greater than or almost the same as the
number of registered financial instruments business operators.
→ More than 60% of collective investment scheme interests sold in Japan are
managed by Article 63 filers.
⇒ On the other hand, the Article 63 Exemption has caused a great deal of problems
(such as improper solicitation, misappropriation of funds, poor operation, abuse of
Article 63 Exemption). Almost 20% of Article 63 filers have been named on the
problematic firms list.
→ Stricter rules became effective on March 1, 2016 (with a 6-month grace period for
some requirements).
Morgan Lewis
19View entire presentation