Japan's Financial Services Agency published an amended Cabinet Office Ordinance on September 16, 2026 that rewires how it runs hearings over surcharge payment orders, the administrative penalties levied for violations of the Financial Instruments and Exchange Act and the Certified Public Accountants Act. The rule takes effect November 30, 2026, and lets respondents and witnesses file records electronically, appear by video and audio link instead of in person, and receive notices by e-mail rather than registered mail.
The change is tied to the phased rollout of a 2023 law overhauling the FIEA and related securities-transfer rules. Before finalizing the text, the FSA ran a one-month comment window from July 10 to August 10, 2026, and received eight submissions, which it published alongside its written responses.
Several commenters pushed to tighten the new digital process, and the agency turned nearly all of them down. One asked for a mandatory 360-degree camera sweep of a remote witness's room before a hearing starts, to catch an off-screen coach feeding answers; the FSA said examiners should judge the right method case by case rather than follow a fixed script. Another wanted the agency to stop letting interested parties plug personal USB drives directly into FSA terminals to copy case files, citing malware and data-leak risk; the FSA kept the option, arguing that removing it would block access for parties who cannot use the online system. A summary of how the agency answered each request:
| Topic | Comment's request | FSA's decision |
|---|---|---|
| Oath reading | Allow a signature instead of a clerk reading the oath aloud | Kept the oral-reading requirement |
| Remote-hearing camera check | Require a 360-degree room sweep before online hearings begin | Left to case-by-case judgment by examiners |
| USB drives at FSA terminals | Ban personal USB drives on cybersecurity grounds | Kept the option to preserve access for parties who cannot use the online system |
| Undelivered e-mail notices | Require a backup phone call or portal alert | No fixed rule; handled case by case |
| Public notice served abroad | Clarify how foreign parties learn that public notice was made | Method left to case-by-case judgment; notice posted on the FSA website and its physical board, among other means |
One procedural feature survives untouched: when a witness cannot recite the oath, a hearing clerk must still read it aloud on their behalf. A commenter argued a signature should suffice, since the oath is recorded in the case file regardless of how it is administered. The FSA disagreed, saying the reading ensures the witness understands they are under oath and that other Japanese statutes handle the requirement the same way.
For companies and individuals contesting an FSA surcharge, the practical change is real: a respondent or witness can now appear by video and audio link from a location the hearing officer deems appropriate, rather than travelling to the agency's hearing room, and case files can move electronically. But the agency's comment responses show real limits: confirming who is in the room during a video hearing will be left to examiner discretion case by case, and the practice of connecting personal USB drives to FSA terminals stays in place, with the agency saying only that it will remain attentive to the security concern in practice.