Japan’s Financial Regulator is seeking to enhance shareholder engagement with
Written
08.02.2023
Author
Makiko Yamazaki and Ritsuko Shimizu
Source
Reuters
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This February, the Financial Services Agency (FSA) announced its plans to put in place an ‘action programme’ of enhancement measures to encourage and deepen company engagement with investors. This comes as one of the steps taken in the corporate governance reform mission this financial regulator is currently leading.
Japan’s financial regulator plans to compile an “action programme” in the first half of this year, with a set of measures to promote deeper company engagement with investors and to enhance board capabilities, a senior official said.
The move comes as the Financial Services Agency (FSA) bids to accelerate a corporate governance reform drive as it seeks to promote more efficient use of capital by companies in the world’s third-biggest economy.
With about half of listed companies still trading below book value in Japan, global investors say they want to see the ongoing governance reform leading to tangible improvements in corporate value.
“The last eight years of reform has boosted corporate governance nominally, in terms of the number of independent directors for instance,” said Toshitake Inoue, deputy director-general of the FSA.
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