Japan Cuts Food Consumption Tax; FSA Sanctions Insurers

Partial Revision of the "Collateral Prices of Eligible Collateral" and Related Rules AIAI translation

AI The Bank of Japan announced partial revisions to its rules, including the "Collateral Prices of Eligible Collateral" and the "Market Price Ratios for Conditional Sales and Purchases of Japanese Government Bonds," to take effect on November 27, 2026. Based on a regular review conducted in light of financial market conditions, the revisions review collateral prices and related items from the standpoint of ensuring the soundness of the Bank's assets and the efficiency of market participants' use of collateral.

Summary of the Press Conference by Minister of Finance Katayama, Minister for Special Missions in the Cabinet Office, Following the Cabinet Meeting (Friday, October 9, 2026) AIAI translation

AI At the post-Cabinet press conference on October 9, 2026, Finance Minister Katayama reported that the Cabinet approved the Consumption Tax and Support Payment Bill, which would temporarily reduce the consumption tax rate on food and beverages for two years from April 1, 2027 and introduce a support payment for workers. He also described the vice-ministerial meeting on thorough review of special tax measures, subsidies and funds, a cybersecurity alert to financial institutions, and the establishment by REVIC of a Reiwa 8 Kumamoto Earthquake Reconstruction Support Fund of up to 5 billion yen. In the Q&A he said he would seek understanding for the bill in the Diet and that funding would be secured without relying on special deficit-financing bonds.

令和9年度及び令和10年度の飲食料品に係る消費税率の臨時的な引下げ

The 155th Grand Examination of Minted Coins to Be Held AIAI translation

AI To maintain confidence in the currency by testing the weight of coins, the Ministry of Finance announced that the 155th Grand Examination of Minted Coins will be held on Monday, November 9, 2026 (Reiwa 8), at the Japan Mint in Kita Ward, Osaka. The coins to be examined are the 1,000 yen silver coins commemorating the 100th anniversary of the national park system (six types), the 1,000 yen silver coin commemorating the 20th Asian Games and the 5th Asian Para Games, and the 500 yen, 100 yen, 50 yen, 10 yen, 5 yen and 1 yen coins.

Holding of the 25th Financial Services Agency–Bank of Japan Liaison Meeting AIAI translation

AI On October 9, 2026 (Reiwa 8), the Financial Services Agency and the Bank of Japan held the 25th FSA–BOJ Liaison Meeting, attended by members including the FSA Commissioner and a Deputy Governor of the Bank of Japan, to exchange views on conditions surrounding the financial system and financial markets.

Administrative Actions against Prudential Life Insurance Co., Ltd., Gibraltar Life Insurance Co., Ltd. and Prudential Holdings of Japan, Inc. AIAI translation

AI On 9 October 2026, the Financial Services Agency took administrative action against Prudential Life Insurance, Gibraltar Life Insurance and Prudential Holdings of Japan. Under Article 132, paragraph 1 of the Insurance Business Act, Prudential Life and Gibraltar Life were each ordered to suspend solicitation and conclusion of insurance contracts from 13 October 2026 to 31 January 2027, and were issued business improvement orders requiring, among other things, clarification of management responsibility and strengthened governance, with improvement plans due by 30 November 2026. The stated grounds include financial misconduct by sales staff and serious deficiencies in management, sales staff supervision and other control systems.

Strengthening Cybersecurity Measures in Light of the Current Situation and Responses to Applications for Various Transactions AIAI translation

AI On 9 October 2026, in response to a series of unauthorized-access incidents leaking customer information including images of identity documents, the Financial Services Agency alerted financial institutions to review their cybersecurity measures, including third-party risk management and incident response arrangements, and to thoroughly check images when verifying identity in non-face-to-face transactions. It also asked them to act as quickly as possible, without waiting for 1 April 2027, when an amendment to the Enforcement Regulation of the Act on Prevention of Transfer of Criminal Proceeds abolishes identity verification by transmitted document images and generally standardizes on reading IC chip information.