On January 19, the Financial Services Agency of Japan (JFSA) released a draft of its "Principles for Customer-Oriented Business Conduct" applicable to Financial Business Operators (FBOs) licensed and registered in Japan (FBO Principles Statement).

The FBO Principles Statement was drafted based on suggestions made in a report published by the Working Group on Financial Markets (MWG) of the Financial System Council (FSC) on December 22, 2016. The public comment period on the FBO Principles Statement ends on February 20, 2017.

The FBO Principles Statement adopts a "principles-based" (rather than "rules-based") approach to financial services supervision and compliance. FBOs are expected to absorb the spirit of the FBO Principles Statement and use it as guidance to establish and follow clear policies that focus on the interests of customers.