Asset Management Nation 2.0
This week, the Asset Management Nation Parliamentary Association, initiated by former Prime Minister Kishida last November, presented its proposal document titled "Proposals for Asset Management Nation 2.0" to current Prime Minister Ishiba, outlining various policy proposals to advance Japan's position as an "asset management nation" across five key pillars.
Strengthening Government Promotion Systems for Asset Management
The proposal calls for establishing a clear command structure through the "Asset Management Nation Promotion Subcommittee" under the Cabinet Office, creating an "Asset Management Nation Realization Plan 2.0," enhancing Japan's international presence through events like Japan Weeks, and significantly expanding the Financial Services Agency's organizational capacity beyond traditional bureaucratic constraints.
Creating Environments for Stable Asset Formation Across All Generations
This focuses on improving financial literacy across age groups, enhancing visibility of financial information including through My Number integration, expanding contribution limits for defined contribution pension plans (iDeCo and corporate DC), simplifying complex pension systems, introducing age-specific NISA programs like "Platinum NISA" for elderly and "Child Support NISA" for youth, and incorporating financial education more deeply into school curricula.
Enhancing Financial Services for SMEs and Providing Diverse Investment Products
The proposal aims to accelerate startup funding by relaxing PE tax exemptions, revising accounting standards for goodwill to facilitate M&As, strengthening the TSE Growth market, reviewing bank-securities firewall regulations, promoting impact investments, and creating environments for incorporating data centers into REITs and developing private credit markets.
Improving Corporate Governance and Value
This section calls for continued corporate governance reforms, ensuring timely disclosure of securities reports before shareholder meetings, implementing sustainability information disclosure requirements for large companies, and promoting employee ownership structures similar to those used in private equity investments to enhance employee engagement and distribute value more widely.
Advancing the Asset Management Industry and Asset Ownership
The proposal recommends leveraging the planned merger of industry associations to transform the sector, supporting emerging fund managers through the Japanese EMP program, developing specialized talent (particularly in deep tech and biotech), rationalizing back-office operations and systems, promoting the Asset Owner Principles across institutions (including universities and pension funds), and continuing to develop financial and asset management special zones in Hokkaido, Tokyo, Osaka, and Fukuoka.
These initiatives collectively aim to transform Japan's capital markets into a "two-way platform" that both attracts global investment and enables Japanese investors to participate in global growth, supporting Japan's economic future especially in the context of demographic challenges and a changing interest rate environment.
