Japan proposes revisions to stewardship code of institutional investors

They will be required to disclose how many shares they own and hold in the company.

Japan is proposing revising its stewardship code to increase the transparency of beneficial shareholders and streamlining parts of the code.

Amongst proposed changes include Guidance 4-2 now requiring institutional investors to disclose how many shares they own and hold in the company, the Financial Service Agency (FSA) of Japan said in a statement posted on 21 March 2025.

Institutional investors will also be tasked with disclosing in advance a policy on how they will respond to Guidance 4-2 requests from investee companies.

They also plan to include a guideline asking investors engaging with investee companies independently to consider their methods for dialogue and keep in mind whether it will lead to constructive dialogue that “contributes to the sustainable growth of investee companies.”

The FSA also plans to streamline the code by removing, consolidating, and simplifying parts of the code.