Japan Establishes Dedicated Asset management Division Within Financial Services Agency
Tokyo, Japan – July 1, 2025 – In a significant move to bolster Japan’s asset management industry and encourage a shift from savings to investment, the Financial Services Agency (FSA) has established a dedicated Asset Management Division, effective today. This marks the frist structural change of this kind since the FSA’s founding in 2000 [[1]].
The new division, comprised of approximately 20 staff, will operate within the FSA’s supervisory department, aligning it with oversight of banks, securities, and insurance. It will focus on developing and implementing policies to cultivate a globally competitive asset management industry while prioritizing investor protection. Nagayama Rena, previously an asset management councillor, has been appointed as the section chief [[1]].
This upgrade from a councillor position (established in 2014) reflects the growing importance placed on asset management by the Japanese government. The move comes as rising interest rates necessitate accelerating the flow of funds from savings into investments. The previous Kishida administration identified building an “asset management-based nation” as a key policy objective, previously enacting measures like expanding and permanently establishing the Small Investment Tax-Free System (NISA) and promoting customer-centric practices among asset management firms [[1]].Despite these prior efforts, progress towards realizing this vision has been slower than anticipated [[1]]. Recent government initiatives, including the “Policy Plan for Promoting Japan as a Leading Asset Management Center” released in December 2023, demonstrate a continued commitment to fostering growth in this sector [[1]]. Further details on the FSA’s plans can be found in newly released documentation [[1]] and [[1]].
This growth signals a proactive approach by Japan to attract investment and strengthen its position in the global asset management landscape, aligning with broader trends identified in industry analyses [[2]] and reports aimed at attracting foreign investment
