About JITA

About The Investment Trusts Association, Japan

(1) History

The Investment Trusts Association, Japan, was established in July 1957 under a license of the Minister of Finance, given pursuant to Article 34 of the Civil Code.
Its original purpose was "to promote the sound development of securities investment trusts and to encourage the securities investments by ordinary investors, and thus to contribute to the proper management of the Japanese economy." However, because of its limited purpose and the voluntary nature of its statutory status, the effectiveness of its activities had been necessarily limited.

Growing concern gave rise to requests to redefine the character of the Association as a guardian for protecting investors. When the Securities Investment Trust Law was amended in August 1967, the new chapter about the Association was added into the Law, and the self-regulatory function was given to the Association. This amendment vested the Association with power to adopt the self-regulatory rules which would strengthen its supervisory ability. The Association revised its purpose as "to protect investors and to contribute to the sound development of securities investment trusts" in line with new provision of the amended Law.

The amendment to the Securities and Exchange Law in December 1998 has permitted the registered financial institutions such as banks and insurance companies to distribute securities investment trusts. In this connection, the amendment to the Securities Investment Trust Law in December 1998 made it possible for them to become the member of the Association in addition to the existing investment trust management companies and securities companies. Further, this amendment added the settlement of complaints from investors to the business of the Association. Therefore, the Association set forth the internal rule for dealing with complaints and appointed staffs who give counsel to investors.

In November 2000, the purpose of the Association was revised again as "to protect investors and to contribute to the sound development of investment trusts and investment companies". In addition, the trust company that would act as the trustee of investment trusts of trustee-managed type has been able to become the member of the Association.

(2) Membership

Membership of the Association includes 162 investment trust management companies and 21supporting-member companies as of  April 21, 2016.

 

(3) Organization

General Membership Meeting

The Association has a general membership meeting as a resolution organ. Each member has one vote at the meeting. The meeting deliberates following matters.

  1. Matters related to the approval of the business plan and business report for each accounting period
  2. Matters related to the approval of revenue and expense budget and the settlement of accounts for every accounting period
  3. Important matters which the board of directors admits as necessary

Board of Directors

The board of directors, also a resolution organ, deliberates following matters.

  1. Matters to be referred to the general membership meeting
  2. Matters entrusted by the general membership meeting
  3. Enactments, amendments and abolition of the Business Rules and other rules,
  4. Other matters approved by the chairman as necessary

Committees

The Association has the four standing committees.

1. The self-regulation committee
Matters related to self-regulatory rules of investment trusts industry.

2. The policy committee
Matters related to the operation of the Association, the system of investment trust and investment company and the taxation.
Matters related to educational activities for promoting knowledge on investment trust.

3. The special measure committee
Measures to be taken in the emergency cases such as the suspension of trading on securities exchanges or foreign exchange markets.

4. The director recommendation committee
Recommendations of director candidates to the chairman.

Disciplinary council

The Association has a disciplinary council as an advisory body of Chairman which deliberates matters related to the disciplinary measures of the members.

Secretariat

The Association has the secretariat to deal with the daily business.

Organization Chart

(4) Business of Association

The Association engages in following business.

  1. The guidance and recommendations in order to have members comply with the laws and regulations when engaging in the investment trust management business, the management business for investment companies and the business of investment trusts managed by trustee (referred collectively to as the investment trust management business) or in the transactions such as sales and redemptions
  2. The investigations, guidance and recommendations necessary for ensuring the investor protection in relation to the investment trust management business such as the proper management of trust properties
  3. The investigations, guidance and recommendations necessary for ensuring the fairness in the transactions such as sales and redemptions as well as the investor protection
  4. The settlement of complaints from investors concerning the investment trust management business or the transactions such as sales and redemptions
  5. The publicity activities to investors etc
  6. The educational activities for promoting knowledge on investment trusts and investment companies
  7. The researches and studies on investment trusts and investment companies and the international exchanges
  8. The promotion of the mutual understanding and the adjustment of opinions among members or between members and the relevant associations,
  9. The recommendations, requests and communications to competent authorities and other relevant bodies