FIRST JOINT STATUS REPORT ON THE U.S.-JAPAN ENHANCED
INITIATIVE ON DEREGULATION AND COMPETITION POLICY
MAY 15, 1998
Since June 1997, the Governments of the United States and Japan have been engaged in an
extensive effort to fulfill the objective of the U.S.-Japan Enhanced Initiative on Deregulation and
Competition Policy (Enhanced Initiative) under the U.S.-Japan Framework for a New Economic
Partnership (Framework) "to conduct a serious exchange of views and to undertake measures, as
called for in the Framework, to 'address reform of relevant government laws, regulations, and
guidance which have the effect of substantially impeding market access for competitive goods and
services,' in order to enhance consumers' interests and to increase efficiency and promote
economic activity."
The Enhanced Initiative reflects the strong belief of both governments in the benefits of
deregulation. The promotion of deregulation and active implementation of competition policy are
issues of major importance to both governments.
Under the Enhanced Initiative the Governments of the United States and Japan have held
meetings of the High-level officials Group and of five Expert-level Groups: telecommunications,
housing, medical devices/pharmaceuticals, financial services, and the deregulation and competition
working group, which addresses structural issues, including competition policy and distribution,
and issues related to transparency and government practices. Consistent with the principles of
two-way dialogue and the achievement of tangible progress, both sides have exchanged views and
interests on a wide variety of deregulation items and each has provided clarifications on the
progress made on its side. As part of that effort, the Government of the United States provided a
submission to the Government of Japan regarding deregulation, competition policy, transparency
and other government practices in November 1997. The Government of Japan has also raised
regulatory issues of interest with the Government of the United States.
The Government of Japan has undertaken a series of deregulatory measures, the latest and the
most significant being the new three-year program for the promotion of deregulation decided by
the cabinet on March 31, 1998, based on the extensive hearings of both domestic and foreign
requests. The salient Japanese deregulatory and other measures that relate to the dialogue under
the Enhanced Initiative are set out in this report.
The Government of the United States welcomed the progress made through efforts by the
Government of Japan. At the same time, the Government of the United States encouraged
continued efforts by the Government of Japan to promptly address outstanding U.S. proposals
contained in the Government of the United States' November 1997 submission.
The Government of the United States provided explanations of the U.S. items of interest to the
Government of Japan. Those items are set out in this report. The Government of Japan
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encouraged the Government of the United States to actively address these issues.
The Governments of the United States and Japan share the view, as discussed under the Enhanced
Initiative, that these measures will improve market access for competitive goods and services,
enhance consumers' interests, increase efficiency and promote economic activity. Consistent with
international obligations, the measures undertaken under the Enhanced Initiative will provide
nondiscriminatory treatment to foreign goods and services.
Both governments reaffirmed their determination to further promote deregulation and to continue
dialogue under the Enhanced Initiative, including considering new issues. Recognizing the
importance of broad-based deregulation in fostering competition, and that the energy sector is
closely related to energy security and the global environment, the two governments will address
deregulation matters under the Enhanced Initiative in an expert-level group to be established
under the existing Japan-United States Energy Working Group. This expert-level group will be
co-chaired by the Ministry of Foreign Affairs and the Ministry of International Trade and Industry
for the Government of Japan and chaired by the United States Trade Representative for the
Government of the United States.
The two governments recognize that implementation of the measures identified in this Report is
an ongoing process and in many cases will require reform of relevant government laws,
regulations, and guidance. Under the Enhanced Initiative, the two governments, upon the request
of either government, will meet at a mutually convenient time to address these measures, and will
work closely together to ensure that these measures contribute to fulfilling the objective of the
Enhanced Initiative.
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DEREGULATION AND OTHER MEASURES BY THE GOVERNMENT OF JAPAN
UNDER THE ENHANCED INITIATIVE
A. Housing
1. Amendment of the Building Standards Law to introduce performance-based codes and
a
centralized evaluation system for new building materials by FY 2000 and to implement by
FY 1999 upgraded and efficient building confirmation and inspection procedures, and newly
simplified performance-based procedures to be implemented in FY 2000 for three-story,
multi-family wood housing and certain commercial and mixed use wood buildings in quasi-
fire protection districts (legislation submitted in the current session of the Diet).
2. Announcement of basic ideas on how to implement regulations related to the
amended
Building Standards Law to the parties concerned at the stage of its preparation over a two-
year period beginning in June 1998.
3. Introduction and promotion of procedures for approval of three-story, multi-family
wood
housing and certain commercial and mixed used wood buildings in quasi-fire protection
districts implemented beginning in August 1997.
4. Implementation of the testing methods and procedures for 2x4 construction,
including
pass/fail testing procedures, based on international and North American practices beginning
in May 1998.
5. Recognition of American Standards Lumber Committee (ASLC) and Western
Wood
Products (WWPA) grademarks for machine stress rated lumber announced in February
1998, and recognition of ALSC and WWPA grademarks for finger-jointed lumber to be
announced in May 1998.
6. Work toward recognition of the Underwriters' Laboratories as a fire testing laboratory
for
various fire preventative building materials.
7. Conclusion that the cordless nailer (IM350/90CTQ) does not fall within the definition
of
"firearms" in the Firearms and Swords Control Law in March 1998.
8. Continue ongoing dialogue on recognition of U.S. nails and nailing systems.
9. Continue ongoing dialogue on market access and standards-related issues in the
housing
sector, including detailed and timely review of measures to implement the amended Building
Standards Law.
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10. A revised Japanese Agricultural Standards (JAS) for structural plywood, emphasizing
performance-based standards, including board strength, will be introduced during FY 1998.
B. Telecommunications
1. Interconnection
(1) Recommendation on methods for realizing number
portability will be issued in FY
1998 based on a study conducted by experts.
(2) Recommendation on the streamlining of the way to
conclude interconnection
agreements among more than two companies will be issued in FY 1998 based on a
study conducted by experts.
(3) The Government of Japan intends to submit a bill
necessary to amend the
Telecommunications Business Law (TBL) to the ordinary session of the Diet in the
Spring of 2000 in order to implement long-run incremental cost methodology
(LRIC) as early as possible. Once the bill is passed, the Government of Japan will
expedite necessary procedures (e.g., the issuance of ministerial ordinances and
approval of interconnection tariffs) so as to implement LRIC at the earliest
possible date. Provided that all due procedures are completed expeditiously, LRIC
will be implemented in CY 2000. In this process, due consideration will be paid to
ensuring that the implementation of LRIC would cause no disruption of provision
of universal service and that it would not prove destructive to end user rates and
business operations of incumbent local exchange carriers. Prior to the introduction
of LRIC-based rates, the Government of Japan will, within the scope of its existing
authority, promote the reduction of interconnection rates as much as possible.
2. Communications Satellite Digital Broadcasting
(1) Relaxation of restrictions on the multiple ownership of channels for
Communications Satellite Digital Broadcasting services in March 1998.
(2) Permission for statistical multiplexing between CS digital
broadcasting-consignors
by the end of 1998.
(3) Elimination of the full cost principle applied for the notification system of CS
broadcasting transponder rates, expected to be implemented around June 1998.
3. International Simple Resale (Ko-Sen-Ko): Liberalization of international
simple resale,
implemented since December 22, 1997.
4. Foreign Investment Restrictions in KDD: Elimination of foreign investment restrictions
in
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KDD (law to be promulgated in May 1998).
5. The 100-Destination Rule: Elimination of restriction on international transit services
(the 100
destination rule) by June 1998.
6. Licensing and Tariffs Procedures
(1) Introduction of legislation permitting tariffs on
notification basis (law to be
promulgated in May 1998).
(2) Permission for Type II telecommunications carriers to
establish access line facilities
that will connect single user facilities (law to be promulgated in May 1998).
(3) Narrowing the scope of Special Type II
telecommunications businesses (law to be
promulgated in May 1998).
(4) Introduction of measures to prevent predatory pricing
(law to be promulgated in May
1998).
7. Ministry of Posts and Telecommunications' (MPT) Notice and Comment
Procedures: Voluntary implementation by the MPT of a notice and
comment process for major regulatory changes.
8. CATV Services: Conclusion of a study by the end of 1998 on restrictions on
foreign
investment for cable television operators with a view toward their removal.
9. Testing and Certifications
(1) Simplification of application procedures for testing and approval of the Radio
Equipment Testing and Approval Association (MKK) from September 16, 1997.
(2) Simplification of MKK technical standard compliance certification from
December
25, 1997.
(3) Simplification of permission procedures for cable television facilities installation
from April 1998.
(4) Simplification of certifications of conformity with technical standards for radio
equipment (law to be promulgated in May 1998).
(5) Simplification of compliance approval with technical conditions for
telecommunications terminal equipment (law to be promulgated in May 1998).
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10. Rights of Way: Completion of a study by the end of 1998 on current conditions in Japan
governing access to poles, conduits, ducts and rights-of-ways, with a view to proposing
measures to improve the ability of CATV companies and telecommunications carriers to
obtain timely, nondiscriminatory and transparent access to such resources.
C. Medical Devices/Pharmaceuticals
1. Greatly expanded acceptance of foreign clinical test data for approval of new medical
devices,
by interpreting the March 1997, Ministry of Health and Welfare (MHW) directive as broadly
as possible.
2. Recognize the value of innovation of pharmaceuticals and medical devices, so as not to
impede
the introduction of innovative products which bring more effective and more cost-effective
treatments to patients.
3. In order to ensure transparency in the consideration of health care policies, allow
foreign
pharmaceutical and medical device manufacturers meaningful opportunities to state their
opinions in the relevant Councils on an equal basis with Japanese manufacturers, and provide
them on their request, with opportunities to exchange views with MHW officials at all levels.
4. Shorten the approval
processing period for new drug applications to 12 months by April 2000,
with steady and continuous improvement between now and then, and to further speed the
introduction of innovative new pharmaceuticals, significantly shorten approval times,
particularly for priority drugs.
5. Expand acceptance of foreign clinical test data for pharmaceuticals through the
incorporation of International Conference on Harmonization guidelines into Japanese
domestic regulations by August 1998, and use an acceptance process that is transparent and
avoids inappropriate delays.
6. Develop as soon as possible streamlined and transparent procedures for the prompt
creation
of new functional reimbursement categories for medical devices within a specified period of
time considering the views of interested manufacturers, clinical experts, and others, subject
to the approval of Central Social Insurance Medical Council (Chuikyo).
D. Financial Services
An extensive program of liberalization of financial services, extending until 2001, is being
implemented according to the schedule set down in June 1997, and legislation to implement a
significant part of the remaining program has been submitted to the Diet. The United States
welcomed the progress made, and the Japanese intention to carry out the full program of
liberalization within the proposed schedule.
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1. Lifting of the ban on issuance of subordinated bonds by commercial banks (June 30,
1997).
2. Liberalization of intermediation of unlisted and unregistered equities by securities
companies (July 1, 1997).
3. Introduction of options on individual stocks in the Tokyo Stock Exchange and the
Osaka
Stock Exchange (July 18, 1997).
4. Introduction of general securities accounts (similar to cash management account in
the
U.S.) (October 1, 1997).
5. Widening the scope of
business activities for subsidiaries of financial institutions (October
1, 1997). Securities subsidiaries of banks are allowed to engage in secondary market
business for equity related bonds and transactions related to stock index futures and options
(excluding those that may require delivery of the underlying shares). Trust bank
subsidiaries of securities firms are allowed to engage in loan trust, specified money trusts
(tokkin) and directed money trust for separate investment (shiteitan).
6. Introduction of an off-hour trading system for block and basket trading in the Tokyo
Stock
Exchange (November 14, 1997).
7. Introduction of direct over-the-counter sales of investment trusts by securities
investment
trust companies on the premises of banks and other financial institutions (December 1,
1997).
8. Lifting of the ban on financial holding companies (March 11, 1998).
9. Liberalization, in principle, of cross-border capital transactions, as the revised
Foreign
Exchange and Foreign Trade Law came into effect. (April 1, 1998).
10. Liberalizing brokerage commissions or the portion of a transaction in excess of yen 50
million (April 1, 1998).
11. Abolition of the obligation for member insurers to use premium rates calculated by the
rating organizations (under deliberation in the current session of the Diet and expected to be
implemented on July 1, 1998).
12. Promoting transaction of assets through establishing a system for securitization of assets via
special purpose companies (SPCs) (under deliberation in the current session of the Diet and
expected to be implemented on September 1, 1998).
13. Introduction of new investment trust products such as company-type investment trusts and
privately-placed investment trusts. (Under deliberation in the current session of the Diet and
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expected to be implemented on December 1, 1998).
14. Full liberalization of securities derivatives (under deliberation in the current session of the
Diet and expected to be implemented on December 1, 1998).
15. Elimination of restrictions on the scope of business activities for securities companies
(under deliberation in the current session of the Diet and expected to be implemented on
December 1, 1998).
16. Switch from a licensing system to a registration system for securities companies (under
deliberation in the current session of the Diet and expected to be implemented on December
1, 1998).
17. Introduction of proprietary trading systems (under deliberation in the current session of the
Diet and expected to be implemented on December 1, 1998).
18. Expansion of the scope of business activities for banks (lifting the ban on sales of
investment trusts, etc.) and for subsidiaries of banks (to full financial related services.)
(Under deliberation in the current session of the Diet and expected to be implemented on
December 1, 1998).
19. Creation of the Securities Investor Protection Fund, with accompanying measures, such as
required separation of customer and proprietary accounts, to reduce participant risks, and
creation of the Policy Holders Protection Corporations (under deliberation in the current
session of the Diet and expected to be implemented on December 1, 1998).
20. Requirement that corporate financial statements and disclosures should be made primarily
on a consolidated basis (to be phased in from FY 1998).
21. Elimination of restrictions on the scope of business activities for securities operating
subsidiaries of banks and trust bank operating subsidiaries of securities companies (expected
to be implemented in the 2nd half of FY 1999).
22. Full liberalization of brokerage commissions (expected to be implemented by the end of
1999).
23. Mutual entry between the insurance businesses and other financial business areas (expected
to be implemented by March 2001).
24. Allowing investment trust management companies and investment advisory companies to
grant discretionary authority to other fund management companies (under deliberation in
the current session of the Diet and expected to be implemented on December 1, 1998).
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E. Distribution
1. Customs/Import Processing
(1) Introduced an interagency network system which links
the customs clearance
computer systems with the computer systems of the Ministry of Health and Welfare
(MHW) and the Ministry of Agriculture, Forestry and Fisheries (RAFF), in order to
expedite import procedures.
(2) To enable swift import clearance, Japan Customs
introduced several measures, such
as expanding pre-arrival review, providing prior classification information by facsimile
and so-called clearance-upon-arrival through the use of customs clearance system for
air cargo (Air-NACCS: Nippon Automated Cargo Clearance System).
(3) Prior classification information system using e-mail will
be established by the end of
1998.
(4) Upgrade the customs clearance computer system for
maritime cargo (Sea-NACCS)
by the end of FY 1999:
a. to enable swift import clearance for maritime cargo
with sophisticated linkage
between cargo status information and import declaration information; and
b. to enhance the interagency network system in order to
link with the computer
systems of other agencies concerned to realize one-stop service on import and
export procedures.
(5) EDI filing for import-export permits and approvals
under the provisions of the
Foreign Exchange and Foreign Trade Law will be instituted by FY 1999.
2. Retailing and Services
(1) Fundamental Changes of Policy Concerning Large Scale
Retail Stores: Submission of
a bill to introduce a new legal regime to address current and new concerns involved in
the opening and operating of large-scale retail stores. This new legal regime will
eliminate the use of supply/demand adjustment mechanisms and require local
governments to apply transparent criteria that are limited to environmental factors,
e.g., traffic and noise, set out in guidelines issued by the central government. The
current Large Scale Retail Store Law will be thereby abolished.
(2) Liquor: With regard to liquor retail license, the
restriction on the number of licenses
issued per a definite population will steadily be phased out from September 1998, to
be abolished as of September 1, 2003. The restriction on proximity to existing
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premises will be abolished on September 1, 2000.
3. Transportation
(1) Trucking Business
a. Enlargement of the operation zones to cover entire
regional economic blocs will be
completed during FY 1998; and
b. Minimum number of vehicles for a trucking business
will be gradually reduced to
five for every region of the country by FY 2000.
(2) Requirements for the submission of cost account
statements, concerning fees and
charges for freight forwarding business, will be eased by FY 1998.
(3) Necessary measures will be taken concerning port
transportation business to comply
with the contents of the final Report submitted by the Administrative Reform
Committee in December 1997, which included the following points: the abolition of
the current business licensing system (demand-supply adjustment regulation), to be
replaced by an approval system; the abolition of the current approval system for
charges, to be replaced by a notification system; and at the same time, the
examination and implementation of various measures for ensuring stability of port
transportation.
4. Standards, Specifications and Certification of Vehicles
(1) The current system for automotive repair mechanics is
being reviewed, taking into
account comments and opinions of interested domestic and foreign parties, with
deregulation as one of the objectives.
(2) Extension of the period of validity of completion
inspection certificate from six
months to nine months (legislation for the revision of the Road Vehicles Act
submitted to the current session of the Diet).
F. Competition Policy
1. The Japan Fair Trade Commission (JFTC)
(1) The JFTC reaffirms its commitment to effectively
enforce and strictly apply the
Antimonopoly Act in accordance with relevant guidelines to address anti-
competitive practices, including cases where any practices, such as those with
retaliatory threats, by an influential manufacturer against distributors lead to
exclusion of its competitors.
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(2) When the JFTC as part of an economic survey
recommends that firms implement
measures, the JFTC will undertake a follow-up survey to assess whether firms
have implemented measures recommended by the JFTC and report the results to
the public.
2. Budget and Resources: The Government of Japan will increase JFTC staff by 10
persons and
its budget by 1.1% in FY 1998.
3. Surveys: The JFTC will:
(1) Conduct a survey of the Antimonopoly Act compliance programs of the top 2000
Japanese firms, with a report to be issued in summer 1998. In this regard, the
JFTC
is prepared to consult with and give advice to firms concerning their compliance
programs.
(2) Conduct a follow-up survey of the photographic color film and paper industry to
assess how firms have addressed the JFTC's suggestions; and
(3) Conduct a follow-up survey of the flat glass industry to assess how firms have
addressed the JFTC's suggestions.
4. Private Remedies: The Government of Japan established study groups (MITI in
September
1997 and JFTC in March 1998) to consider systems to permit private parties to sue for
injunctions against violations of the Antimonopoly Act with reports to be expected in
Summer 1998 and Fall 1998, respectively.
5. Exemption Systems of the Antimonopoly Act: The Government of Japan will
submit
legislation to the next ordinary session of the Diet to abolish or reform exemption systems
(including anti-depression cartels and rationalization cartels), based on a March 1998
cabinet decision.
6. Deregulation: The JFTC will actively conduct surveys and make necessary
proposals
regarding the business field where entry is restricted by supply-and-demand adjustment
regulations as well as business fields where entry regulations have been relaxed.
7. Bid-rigging:
(1) The Government of Japan will take necessary measures
to secure full compliance with
section V.6(l) "Confirmation in Tendering Documents" of the "1994 Action Plan on
Reform of the Bidding and Contracting Procedures for Public Works," which requires
participants in bidding to confirm in tendering documents that they recognize they
may not engage in practices inconsistent with the Antimonopoly Act, and that they
are indeed not involved in such practices.
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(2) To increase transparency in the bidding process, the
Government of Japan will
disclose the scheduled price (yotei kakaku) for public works projects after the results
of the tenders are released.
G. Legal Services
The current session of the Diet passed legislation that will:
1. Reduce the experience required to register as a gaikokuho-jimu-bengoshi (foreign legal
consultant) from five years to three years, while at the same time reducing the amount of
time spent in Japan that would count toward meeting that requirement from two
years to one year.
2. Allow a foreign lawyer to count toward meeting the experience required to register as
a
foreign legal consultant, the time spent practicing the law of the lawyer's home jurisdiction
in a third country.
3. Liberalize the ability of a gaikohuho-jimu-bengoshi to practice third country
law with
written advice from foreign lawyers qualified in that third country.
4. Expand the purpose of joint enterprises between gaikokuho-jimu-bengoshi and
bengoshi
with a view to enabling the joint enterprises to provide full legal services throughout the
entire process including judicial and administrative proceedings in cases involving foreign
legal matters.
H. Transparency and Other Government Practices
1. Public Comment Procedures
(1) Reach a conclusion concerning an administrative
measure for public comment
procedures for the introduction, amendment, and abolition of regulations by Spring
1999.
(2) "Central Government
Reform Bill" (tentative translation) which provides that the
Government of Japan shall consider utilizing and establishing a mechanism of
public comment procedures for the purpose of reflecting public opinions in its
policy-making process, and thereby securing fairness and transparency in the
process (legislation submitted to the current session of the Diet).
2. Application Process
(1) Review the examination standards for the issuance of licenses, permits, and
approvals with the aim of clarifying, specifying, and quantifying the examination
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standards while minimizing discretionary factors.
(2) Simplify and speed up the examination procedures for licensing, permits and
approvals with measures to be specified by the end of September 1998 and
promptly
implemented.
(3) Enforce strictly the Administrative Procedure Law.
3. Establish a study group to explore means of introducing the use of overall greatest
value
methodology for procurement by local governments, with a view to taking necessary
measures, including submission of a bill amending the Local Autonomy Law, as
appropriate, in FY 1999,
H. Deregulation Entity
Under the new "Three-Year Program for the Promotion of Deregulation," the Government of
Japan mandates the Deregulation Committee under the Administrative Reform Promotion
Headquarters which consists of Prime Minister as its chairman and all cabinet ministers to: (1)
monitor implementation of Japan's deregulation measures decided by the new three-year
deregulation promotion program, and (2) address new deregulation challenges. In order to enable
the Committee to execute these mandates, the Government of Japan announced on May 8, 1998,
to expand the Committee's membership from seven to eleven, and decided to strengthen the
function of its secretariat, especially that of conducting research upon the Committee's request
and established a new research division of about fifteen supporting staff on May 11, 1998, with a
view to making the Committee's activities more efficient.
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U.S. ITEMS OF INTEREST TO THE GOVERNMENT OF JAPAN
1. Structural Issues, Transparency and other Government Practices
(1) Buy America Clauses
(2) Measures under Ocean Shipping Reform Act of
1997
(3) Maritime Security Program
(4) Requirements to Transport on U.S. Flag Vessels
(5) Provisions requiring the use of ships built in the United
States in the coastal
shipping service
(6) U.S. and International Standards for Oil Tankers for
the Protection of the Marine
Environment
(7) Anti-dumping
(8) Anti-Monopoly Exemption Clause on Insurance
Industry
(9) Visa Issuance Process
2. Telecommunications
(1) Federal Communication Commission's (FCC) Order on
Foreign Participation in the
U.S. Telecommunications Market
a. Licensing Criteria,
b. Regulations on Dominant Carriers, and
c. Standard Processing Period
(2) FCC's Order Concerning International
Settlement Rate Benchmark
(3) FCC's Order to allow Non-U.S.-Licensed
Satellites to Provide Services in the United
States
(4) Method for Sharing the Costs for Utilizing Internet Communication Circuits.
(5) Implementation of LRIC to calculate interstate access
charges in the United States at
the same time as Japan does.
(6) Transparency in preparation of the Government of the
United States' LRIC models.
3. Medical Devices and Pharmaceuticals
(1) Promotion of Mutual Recognition of Good Manufacturing Practices (GMP) of
pharmaceutical and medical devices between the United States and Japan.
(2) Medical Devices: Simplification and Acceleration of Procedure 510(k)
Notification
Submission.
(3) Pharmaceuticals: Allowing the Notification to the Food and Drug Administration
(FDA) after the Alteration of the Manufacturing Methods.
(4) Simplification of the data submitted for investigational new drugs (IND).
4. Financial Services
(1) An abbreviated examination system for licensing of Japanese and other foreign
securities representatives, for conducting business with the NYSE, NASD, and
AmEx exchanges.
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(2) Minimizing the overlap between federal and state securities registration
requirements, and prohibiting states from limiting or imposing conditions on the
sale
of most securities.
(3) Allowing bank holding companies and foreign banks with subsidiaries in more
than
one state to merge or consolidate these bank subsidiaries into a single bank with
interstate branches (except in states that specifically prohibit such interstate
branching networks).
(4) An expanded list of activities (contained in Regulation Y) that bank holding
companies and foreign banking organizations are permitted to engage in, to
include:
riskless principal, private placement, proprietary trading and other activities that
had
been previously approved only in individual Board orders; streamlined application
or
notification procedures for bank holding companies or foreign banks to engage in
regulation Y activities or to acquire a firm engaged in such activities.
(5) Amending Regulation K which governs the foreign operations of U.S. banks and
U.S. operations of foreign banks, including revisions that would change how
Qualifying Foreign Banking Organization status is calculated for purposes of
determining eligibility for certain exemptions from nonbanking restrictions.
(6) Financial modernization legislation to allow common ownership of banking,
securities and insurance companies, subject to certain restrictions an affiliation
with
non-financial firms.
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