The first article on the debut of the No-Action Letter system focused on why it is necessary to create a standardized, public interface through which the Financial Services Agency can promptly respond to financial institutions' questions and concerns about compliance with regulatory issues.
Further improvement of the letter system will be discussed in future articles, but this one will focus on the government's first No-Action Letter, which was written on behalf of an insurance company, and the FSA's response, made on December 5, 2000.
The first No-Action Letter covered topics related to certain concerns raised following the failures of the Nissan and Toho Insurance Corporations. Once other insurers such as Kyoei and Chiyoda also collapsed, the resulting state of mass insolvency led to further concern about how to protect the interests of the more than 5 million policyholders covered by these companies.