The Financial Instruments and Exchange Act (金融商品取引法, Kin'yū shōhin torihiki-hō), is a Japanese law that is the main statute codifying securities law and regulating securities companies in Japan.
[1] The law had three major aims: to encourage the use of financial services and instruments by extending consumer protection and increasing convenience; to increase perceived reliability in the securities market by enacting rules to ensure fairness and transparency; to reform the existing laws to conform to international standards in an increasingly globalized market.
[citation needed] The Internal Control Committee of the Business Accounting Council of the Japanese Financial Services Agency provided final Implementation Guidance for Management Assessment and Audit of Internal Controls over Financial Reporting (ICFR) in February 2007.
The Implementation Guidance provides details to Japanese companies on how to implement a Management Assessment of Internal Control over Financial Reporting as required under the Financial Instruments and Exchange Law.
The Financial Instruments and Exchange Act became effective in April 2008 for roughly 3,800 companies listed in Japan, along with their foreign subsidiaries.