Expansion of trust managers under the 2004 amendments to the Trust Business Act
The 2004 amendments to the Trust Business Act extended the realm of managers of trusts to trust companies in addition to financial institutions concurrently conducting trust business. The expansion of companies that manage trust business is expected to expand the trust system, improve its service and convenience to users promoting competition, and increase the size of the overall market.
Financial institutions concurrently conducting trust business and trust companies
| Enacting legislation | License/ registration | Structure | Minimum capital | Amount of business security deposit | Main business operations | |
| Financial institutions concurrently conducting trust business | Banking Act (Establishment) #1 Concurrent Business Act (Approval for Trust business) #2 |
License #1 | Financial institutions such as banks | 2 billion yen #1 | 25 million yen | Trust business Concurrent operation #3 Banking business |
|---|---|---|---|---|---|---|
| Investment-based trust companies (including investment-based foreign trust companies) | Trust Business Act | License | Stock company | 100 million yen | 25 million yen | Trust business Accompanying business #4 |
| Custodian-type trust companies (including custodian-type foreign trust companies) | Trust Business Act | Registration (Updated every 3 years) |
Stock company | 50 million yen | 10 million yen | Custodian-type trust operations #5 Accompanying business #4 |
| Trusts within the group companies #6 | Trust Business Act | Notification | Company | - | - | Management of assets held by companies belonging to the same group |
| Technology Transfer Institutions (authorized TLO)
#7 |
Trust Business Act | Registration | Juridical person | - | 10 million yen | Acceptance of a trust that falls under the category of a specified university technology transfer project |
- Note
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- The establishment, licensing, organizational structure, and minimum capital of financial institutions other than banks are determined by their respective fundamental laws.
- The provisions of the Trust Business Act are applied mutatis mutandis to trust banks and others pursuant to Article 2 of the Concurrent Business Act.
- Concurrent operation is the business defined in the Concurrent Business Act Article 1 (1) Items 1 to 7. The main business is real-estate business, securities agency business, and will (inheritance)-related business. Furthermore, restrictions apply to trust banks that can handle real-estate business.
- Accompanying business is restricted to separately authorized business related to trust business that is considered unlikely to impede trust business.
- Custodian type trust business is the administration and disposal of trust property based on the instructions of the settlor or a person entrusted by such settlor with the authority to give instructions, and undertaken only in relation to the use, enhancement, and preservation of trust property to the extent that it does not change the quality of the asset.
- In trusts within group companies, the settlor, trustee, and beneficiary belong to the same group company. Transfer of beneficial interest outside the group is prohibited.
- Technology transfer organizations (authorized Technology Licensing Organizations or TLO) transfer the results of technological research at universities and other institutions to companies.
Trust Banks | Expansion of trust managers under the 2004 amendments to the Trust Business Act | Over-the-counter operations for trust services
