Based on the FIEA and its related enforcement ordinances, Financial Instruments Business Operators carrying out Type 1 Businesses (hereinafter referred to as “Financial Instruments Business Operators”) have an obligation to become members of JIPF. As a result, in its Articles of Association, JIPF defines its members as such.
Board of Governors
The FIEA and the JIPF’s Articles of Association establish a Board of Governors for the purpose of deciding on items stipulated by the Articles of Association and important items related to the operation of JIPF.
The Board of Governors comprises a chairman and from 2 to 12 other governors. Currently, the Board has a chairman who has no conflicts of interest regarding his position, 8 governors who are representatives of JIPF members, and 4 governors who represent the public interest and come from the academic and other fields. In principle, the Board meets four times annually.
In accordance with the FIEA and the JIPF’s Articles of Association, a Governing Council has been established to certify whether a Financial Instruments Business Operator that has become insolvent will be able to smoothly fulfill its obligation to return customers’ assets. The Governing Council comprises 8 or less council members with the appropriate background and experience to properly manage the JIPF. Presently, there are 7 people on the Council. Looking at its record over the past five fiscal years, the Governing Council meets on average once or twice a year.
In accordance with the FIEA and the JIPF’s Articles of Association, the JIPF has established a General Meeting comprising all of its members as a decision-making body. There are regular general and special meetings, with the Regular General Meeting being held annually within three months of the end of the fiscal year (by June), while special general meetings are held as necessary. General meetings are convened based on a resolution by the Board of Governors and the issuing of an invitation by the Chairman. In addition to items stipulated in the Articles of Association, the general meetings decide on the following matters.
- Changes in the Articles of Association
- Decisions about or changes in the budget and asset allocation plan
- Changes in the scope of operations
- Financial statements
- Items related to the above and any other items for which the Board of Governors deem decisions are necessary
The Prime Minister of the government’s cabinet and the Minister of Finance are the supervisory authorities of the JIPF under the FIEA. However, with the exception of a few matters, the Prime Minister delegates his authority to the Commissioner of the Financial Services Agency (FSA).