The Japanese government intends to exempt asset managers from proposed rules that require foreign investors to get approval if they want to buy stakes of 1% or more in Japanese companies involved in strategic sectors, The Nikkei reported Oct. 17.
The report came after the government proposed to amend reporting rules on foreign ownership to protect sensitive industries. At present, foreigners are only required to seek government approval if they want to buy a 10% or larger stake in a Japanese company.
The government plans to issue a ministerial ordinance to clarify that the new rules will not apply to investment deals that do not influence the companies' corporate management. Further, it will not require asset managers to seek prior in-principle approval. It will submit the proposal to the legislature during the current session that runs until December.