Japanese "Big Bang" Reforms in Effect

Washington, DC, March 11, 1999 - On December 1, 1998, regulations that substantially deregulate financial markets in Japan became effective. The so-called "big bang" rules are expected to significantly open Japan's investment trust industry to foreigners. Long-standing restrictions imposed by Japan's Ministry of Finance have been abolished and the Japan Securities Dealers Association has relaxed its rules governing the sale of offshore funds. For onshore funds, the new rules expand distribution channels and permit the delegation of investment management authority to foreigners, among other things. A more detailed summary of the reforms can be found elsewhere on this website.