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FSA to ease rules separating bank, brokerage business.

TOKYO, March 25 Kyodo The Financial Supervisory Agency (FSA) said Thursday it will substantially relax regulations that have drawn a clear line between operations of banks and their brokerage subsidiaries. Officials of the financial industry watchdog said the steps to ease the ''fire wall'' rules will take effect April 1 as part of the government's ''Big Bang'' financial market deregulation. The government introduced the rules in 1993 to safeguard investors and depositors and prevent banks from using their strong clout on corporate borrowers for the benefit of their subsidiaries. The fire wall regulations were introduced when banks were allowed to enter the securities industry by establishing brokerage subsidiaries. Under the FSA program, banks' brokerage subsidiaries will be allowed to lead-manage bond issues by companies doing business with their parent banks, the officials said. Among other deregulatory steps, banks and their securities subsidiaries will be allowed to operate joint branches, and their marketing representatives will be permitted to jointly visit customers, they said.
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Comment:FSA to ease rules separating bank, brokerage business.
Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Mar 29, 1999
Words:162
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