Overview
Some disclosure regimes apply differently to different types of investors, such as the FEFTA Sensitive Industries regime in Japan. FundApps distinguishes between the various applications for specific disclosure regimes via the property CompanyType. Setting this property is important, as it determines which set of rules will run against the uploaded positions.
Please note that, based on guidance from Japanese regulations, it is not possible to have more than one CompanyType set for a given entity. FundApps does not accommodate multiple selections, as our Sensitive Industry rules only run on the top (ultimate parent entity) level.
Please see: https://www.mof.go.jp/english/international_policy/fdi/kanrenshiryou01_20200424.pdf for the source of the investor types, particularly pages 4, 5, and 6.
The determination of which rules to run happens in the precondition of a rule, where the value of the CompanyType property is used as the input. See the example below:
Valid CompanyType Values
JP-TypeA - Type A investors under FEFTA in Japan
To be considered for the Top-Level Entity. Foreign investors falling into either of the following categories are regarded as Type-A investors.
Organisations or individuals who have obligations to cooperate with foreign governments in collecting information related to Japan’s national security based on agreements with foreign governments or foreign laws and regulations.
Organisations controlled by foreign investors mentioned in number one above or by foreign governments that impose obligations on these investors. This control may be established through 50% or greater ownership of voting shares or by the appointment of 1/3 or more of the organisation’s board members. This is in accordance with the current rule with respect to foreign investors owned or controlled by foreign governments or SOEs.
JP-TypeB - Type B investors under FEFTA in Japan
To be considered for the Top-Level Entity. To prevent circumvention of the rules, foreign investors are regarded as Type-B investors in the following cases.
Their substantive decision-making is controlled by an organisation or individual who must cooperate with foreign governments to collect information about Japan’s national security (Type A point 1 above).
Their substantive headquarters are located in foreign countries/regions other than the countries/regions of incorporation, and their activities are affected by laws and regulations on information collection activities related to Japan’s national security, where their substantive headquarters are located.
Investors with obligations to cooperate with foreign governments in collecting information related to Japan’s national security based on agreements (including each agreement when having chains of similar agreements) with Type A investors.
Note: If no FEFTA CompanyType has been populated, the most conservative State-Owned/Type A rules will be defaulted.
JP-FFI - Foreign Financial Institutions
To be considered for the Top-Level Entity. This includes Securities Firms, Banks, Insurance Companies, Asset Management companies, Trust Companies, Registered Investment Companies (including mutual funds and exchange-traded funds) and High-frequency Traders.
JP-GenInv - General Investors
To be considered for the Top-Level Entity. This includes Sovereign Wealth Funds and Public Pension Funds accredited by the Japanese authorities.
JP-StOw - State-Owned Enterprises
To be considered for the Top-Level Entity, this includes State-Owned Enterprises and investors with a record of sanction due to a previous violation of the FEFTA.