FFAJ Regulatory Entity

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By reflecting all the developing funds, FFAJ started working in 1989. FFAJ is an abbreviation for the Financial Futures Association of Japan. This organization was established under the authorization of the Finance Minister according to the Financial Futures Trading Law promulgated in 1988.

FFAJ’s main aim is to ensure that investors are protected. Thus, it contributes towards the sound and stable growth of financial futures industries. Moreover, it contributes to the massive rise of futures trading through proper business management within financial futures firms.

Introduction

By 2020, The FFAJ has 147 member organizations, and it is following its mission as a self-regulatory organization. It merely works for the financial instrument companies and all those registered institutions that operate as financial futures businesses.

In addition, it is also providing services in those areas where guidance is required. This can be either in the form of self-regulation or mediation services for the settlement of disputes. Public relations and training or industry research areas are also taken into consideration.

The FFAJ is simply working as a self-regulatory body for different financial companies or registered financial institutions.

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How does FFAJ help protect investors?

FFAJ has even empowered them to protect investor’s rights where they are. FFAJ has been acting as a self-regulatory body since 1992 to continuously improve its services. For example, the Financial Futures Trading Law has revised all over again in 2005, which was meant for future transactions with retail customers for their financial futures business.

FFAJ has a major role to play when it comes to mediation services. They plan to resolve disputes between investors and members through these services. Their main objective just revolves around financial services.

What else FFAJ offer?

You will find a few more services on the website of FFAJ, including:

  • Formulating the self-regulatory rules for the members. They provide the members with proper guidance, audit, and best recommendations.
  • In addition, they work promptly over complaints of the investors to bring a permanent solution to it. Grievances are also introduced under the supervision of members.
  • The research is conducted on different domestic and foreign financial futures markets. The entire statistical data is compiled, and recommendations are made to encourage high growth in the market.
  • Publications are issued on financial Seminars and training sessions are also arranged through their official website.

List of members included in FFAJ

  • City Banks(4)
  • Regional Banks(30)
  • Trust Banks(3)
  • Other Banks(9)
  • Foreign Banks(10)
  • Regional Banks 2(4)
  • Federated Financial Institutions(1)
  • Securities Companies(52)
  • Foreign Securities Companies(3)
  • Commodity Futures Brokers(5)
  • Other Futures Brokers(20)
  • Special Participants (4)
  • Federated Financial Institutions(1)
  • Securities Companies(1)
  • Etc(2)

We have shared with you the list of members registered with the FFAJ. The list was created in June 2021.

When was the FFAJ act amended?

Back in 2005 when the Financial Future Trading Act was amended for proper regulation. It defines and yet regulates all those firms who are carrying FX transactions as financial futures firms. After that, numerous FX trading firms were registered who started working in the financial futures business.

The Financial Instruments and Exchange Act thus took effect in September 2007, and all such FX trading firms were also registered under it. Authorities conducted an examination that they were required to pass.

Before a juridical person can perform the functions of a financial futures business, he has to register. This will also include the business for TX transactions. Under the new Financial Instruments and Exchange Act, any person can get membership in this association. Upon approval by the Board of Directors, they can join this association.

It is mandatory to perform a proper assessment which is worth enough for selecting any firm. Make a suitable judgment for the selection of a firm before you start an FX transaction. This is because each juridical individual has different characteristics. And these characteristics are in the light of performance, financial conditions, or the personnel structure.

Which acts are prohibited by financial instruments firms?

Some Financial Instruments and Exchange Acts are listed, which are completely prohibited by the financial instruments firms. These acts are:

  • Giving any customer wrong information for entering into or getting into a contract for the financial futures transactions.
  • Solicitation for entering into any contract for the financial futures transactions. And this is done by offering any definite customer predictions in the form of “definitely profitable” or “Yen will be appreciated (or depreciated)”.
  • Soliciting yet to enter into the contract towards any over-the-counter financial futures transactions. This can be done by visiting or telephoning any customers who have not yet requested any solicitation to enter into the contract.
  • Soliciting any of the customers to make their way into the contract for the financial futures transactions. But, again, no early confirmation is made to make sure whether the customer is ready to get solicited or not.
  • Soliciting any customer who has been previously solicited to move into the contract for the financial futures transactions. This can be even despite the condition that the specific customer is not showing any positive intent to enter into a contract.

More information

Regulator name Financial Futures Association of Japan
Acronym FFAJ
Headquarters Tokyo, Japan
Website www.ffaj.or.jp/en/
Founded on August 1989
Markets Regulated Forex markets and Financial Futures

 

Final verdict

In summary, FFAJ contributes to activities that are associated with industry growth. Although they do not offer marketing, they gather some statistical data and draw conclusions based on that data.

FFAJ will present their basic and concrete recommendations. These recommendations play a major role in bringing healthy growth to the vertical. In addition, you can visit the official website of FFAJ, where they also handle some public relations and host some seminars or training sessions.

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