Welcome news this week about Japanese corporate governance developments from Washington-DC based Council of Institutional Investors. Jonathan Urick, CII's international governance policy co-ordiantor met with Makoto Seta and Toshiya Otsu of the Japanese Financial Services Agency (FSA) to discuss their agency's ongoing efforts to improve corporate governance.

Makoto and Toshiya have embarked on an ambitious global roadshow to meet with various foreign investors and market participants to promote the findings and recommendations of the Financial System Council’s Study Group on the Internationalization of Japanese Financial and Capital Markets. The Study Group’s report, Toward Stronger Corporate Governance of Publicly Listed Companies (June 2009), includes a number of recommendations to move Japan significantly toward more rigorous governance.

Although the recommendations may not be sufficiently radical for every-one's taste,  implementation of the report’s proposals would be a very positive step for Japan.

The Council is now seeking input from its members on how best to support the efforts of the Financial System Council, the Japanese FSA and others to improve corporate governance in Japan. In the first instance Makoto and Toshiya have agreed to a teleconference with CII members to discuss the FSC report upon their return to Japan.

Jonathan Urick can be reached on +1 202 822 7096 or email him at jonathan(at)cii.org (please replace at with @)

Links

Japanese Financial Services Agency >>

Tokyo Stock Exchange White Paper on Corporate Governance (January 2009) >>

"For Creating Better Market Environment Where Investors Feel Secure" (April 2009) >>

Ministry of Economy, Trade and Industry (METI) Corporate Governance Study Group Report (June 2009) >>