#Japan #Tokyo #Investment Management #Reg Compass #compliance outsourcing

Reg Compass Initiates Compliance Outsourcing Services

Reg Compass Inc., a company rooted in Tokyo's Chuo-ku, has recently completed its registration as a provider of investment management services under Japan's Financial Instruments and Exchange Act. This new venture comes at a time when there are pressing needs for enhancing compliance efficiency in both domestic and international investment management sectors. Since its inception, Reg Compass has aimed to foster asset formation among individuals through accessible financial choices, thus addressing a critical gap in the Japanese investment landscape.

Background of Japanese Investment Management

Investment firms in Japan, such as asset management companies, function by managing investor funds primarily through equities and bonds. However, Japan lags behind other countries in terms of the number of unique asset management firms and the size of asset management relative to GDP. One of the significant challenges deterring new entrants is the burden associated with obtaining registration; this includes securing personnel for not only investment management but also for middle and back-office operations.

In response to this issue, the government has initiated the 2023