• JPN FSA published the Summary of laws, regulations, and Q&As concerning material proposal acts and joint holders under the substantial shareholding reporting system toward constructive dialogue between institutional investors and investee companies.

Outline of Summary

• Summary reflects the Japanese stewardship code revised in June 2025, which calls on institutional investors to engage in constructive dialogue with investee companies.
• In order to promote sustainable growth of investee companies and increase investment returns for clients and beneficiaries over the medium to long term.
• It also reflects 2024 revisions to Financial instruments and exchange act (FIEA) effective from 1 May 2026, subsequent revisions to ordinances.
• The amendments clarify the scope of material proposals to enable institutional investors to engage in in-depth dialogue and joint holders with the aim of promoting collaborative engagement contributing to improving mid to long-term corporate value.
• This document presents approaches for the relationship between material proposal acts under the substantial shareholding reporting system and dialogue with investee firms.
• In addition to the relationship between joint holders and collaborative engagement.