Fifth in a series
Closely related to the No-Action Letter system but just as important for enhancing the transparency of Japan's financial market and Japanese regulations is the Advanced Ruling system. As I explained in an earlier column, the No-Action Letter system deals with the interpretation of regulations by competent authorities with regard to the law and, in particular, how to obtain legal clearance when introducing new products on the financial market.
The Advanced Ruling system, which I will focus on today, relates to tax matters and how financial institutions and investors can receive answers or guidelines regarding tax treatment of new financial products introduced to Japan's financing market.