Japan FSA Revises Governance Code for First Time in 5 Years as Foreign Investors Fear Rollback
Updated
Updated · Bloomberg · May 14
Japan FSA Revises Governance Code for First Time in 5 Years as Foreign Investors Fear Rollback
1 articles · Updated · Bloomberg · May 14
Japan’s Financial Services Agency has opened public comment on its first Corporate Governance Code revision in five years, with submissions due Friday.
The review has stirred concern among foreign investors that Japan could dilute reforms that have pushed listed companies to improve corporate value and governance.
Those worries matter because governance changes have been a key draw for overseas money and helped fuel a rally that lifted Japanese equities to record highs.
Separately, the Justice Ministry is collecting feedback through next week on Companies Act amendments, extending scrutiny of how Japanese firms are formed, managed and supervised.
Will Japan's new governance rules protect management at the expense of foreign investors?
Are Japan's reforms a shield against foreign influence amid rising economic nationalism?