The Financial Services Agency unveiled a new set of guidelines for securities firms on Wednesday that will tighten rules regarding the calculation of their capital adequacy and bring them in line with international standards.
The new rules are an attempt to help promote risk management on the part of brokerages, and they come ahead of the introduction in April of new accounting rules and of a protection limit on client assets, the agency said.
Under the new calculation standards, ceilings will be imposed on unrealized portfolio gains and the amount of subordinated loans that can be counted as part of a brokerage's capital.