Hong Kong Funds Allowed Possible Evacuation to Japan – get FSA Approval in 3 Days the Quickest

 Recently Nihon Keizai Shimbun electronic version reported the following:

香港ファンド、日本へ退避可能に 金融庁最短3日承認

【イブニングスクープ】

金融最前線 経済 金融機関

2020/7/31 18:00日本経済新聞　電子版

政情不安の続く香港から投資ファンドを受け入れる新たな仕組みができた。金融庁は大規模なデモなどで業務の継続が難しい場合、通常の登録手続きを免除し、最短3日で日本を一時的な退避先とすることを認める。アジアを代表する金融センターの香港から、優秀な人材を呼び込む契機にしたい考えだ。

政府は2020年の成長戦略で海外人材を呼び込み、日本を国際金融都市とする目標を掲げる。人材の供給源として香港に注目している。香港国家安全維持法の施行に反発するデモなどの混乱や中国の強権支配を避け、海外に拠点を移す動きが出てきている。

金融庁は7月に金融商品取引法関連の内閣府令を改正し、自然災害などが起こった場合に海外のファンドや証券事業者が一時的に日本で業務を続けることができるようにする例外規定を設けた。

本来は日本で事業を展開するには金融商品取引業の登録が必要だが、これを免除する。金融庁長官の承認を得れば3カ月間の活動が可能になる。もともとの拠点での事業再開の見通しが立たなければ、延長も認める方向だ。承認手続きは最短で3日間程度を見込む。本来必要な登録を得るには6カ月ほどかかる。

改正した内閣府令では事業者を受け入れる条件を「災害その他の事由」で業務継続が困難になった場合と定めた。自然災害以外に、香港のように政情不安で治安が悪化した場合も想定している。

例えば香港に拠点を残したまま、日本で一時的にオフィスを設けて活動することを想定する。その後、延長や金商法に基づく正式な登録を経て、長期間にわたり事業を続けてもらいたい考えだ。

日本では投資などから得る収益に15%の課税をするのに対し、香港やシンガポールは非課税としている。シンガポールは香港と並ぶアジアの金融センターで、英語も通じやすく、すでに香港から金融人材が移り始めた。

日本も香港の人材を受け入れる制度づくりを急ぐ。自民党の外国人労働者等特別委員会は税制優遇などの具体策を議論している。

足元では新型コロナウイルスの感染拡大を受けた入国制限により、香港から日本への入国は難しい。政府はビジネス目的の往来の再開に向けた交渉に乗り出している。

Translation

A new system had been established to accept investment funds from Hong Kong where political unrest continued. The Financial Services Agency (FSA) would exempt normal registration procedures and allow Japan to become a temporary evacuation destination in a minimum of 3 days if it was difficult to continue operations there due to large-scale demonstrations etc. Japan would like to take the opportunity to attract excellent human resources from Hong Kong which was a financial center representing Asia.

The government's growth strategy for 2020 was to attract overseas human resources and set the goal of making Japan an international financial city. It focused on Hong Kong as a source of human resources. Due to confusion by demonstrations etc. against the enforcement of the National Security Maintenance Law in Hong Kong, there was a movement to move out from it so as to avoid the control from China’s power.

The Financial Services Agency amended the Cabinet Office Ordinance related to the Financial Instruments and Exchange Act in July to allow overseas funds and securities companies to temporarily continue their operations in Japan in the event of a natural disaster.

Originally, in order to develop business in Japan, it was necessary to make registration for the financial instruments business, but this was exempted. With the approval of the Commissioner of the Financial Services Agency, activities for three months would be possible. If there was no prospect of reopening the business at the original site, the company could be allowed an extension. The approval process was expected to take about 3 days at the earliest. Originally it would take about 6 months to get the required registration.

The revised Cabinet Office Ordinance stipulated that the condition for accepting a business operator was that it became difficult to continue operations due to "disaster or other reasons". In addition to natural disasters, it also assumed that the security situation deterioration due to political unrest like those in Hong Kong.

For example, someone would like to temporarily set up an office in Japan and operate it while leaving his base in Hong Kong. After that, he might consider to have the business continue for a long time through an extension and officially registered under the Financial Instruments and Exchange Act.

In Japan, income from investments was taxed at 15%, whereas in Hong Kong and Singapore taxation were exempted. Singapore was on par with Hong Kong as a financial center in Asia, and English could be understood easily. Financial talent had already begun to move from Hong Kong.

Japan also hastened to create a system to accept human resources from Hong Kong. The Liberal Democratic Party's Special Committee for Foreign Workers was discussing concrete measures such as tax incentives.

At present because of the spread of the new coronavirus, it was difficult to enter Japan from Hong Kong due to entry restrictions. The government was embarking on negotiations to resume traffic for business purposes.

              So, Japan is preparing to open its doors to business investment and human resource from Hong Kong.