Scrutiny from regulators outside Japan:
Challenges for Japanese companies
Japan is at a demographic inflexion point. As the domestic market shrinks and more Japanese companies pivot internationally to increase profits, they expose themselves to increased legal, commercial, reputational and regulatory risk.
Our lawyers have developed this series to discuss the challenges that Japanese companies face when dealing with internal fraud or misconduct, and stakeholders overseas start to ask difficult questions. In bringing this series together, they have leveraged decades of experience successfully defending Japanese clients against foreign regulators and litigants.
The regulatory and legal landscape outside Japan is different to what Japanese companies are accustomed to when operating at home. Huge fines imposed by regulatory authorities and massive damages awarded by courts are a real risk. Overseas regulators typically have different approaches to investigation and enforcement, and wider powers, than their Japanese counterparts. Plaintiff law firms outside Japan are aggressive. Large collective claims, or ‘class actions’, expose Japanese companies to the risk of significant adverse judgments, which can then be enforced against assets in Japan. It is critical that companies develop an awareness of the differences in expectations, and appropriate systems and controls, to ensure they are not ill-prepared.
The series comprises 21 episodes grouped into five parts:
- Series overview
- Corporate structure
- Corporate culture
- Challenges responding to investigations
- Mindsets following regulatory scrutiny
The series aims to provide Japanese companies with greater awareness and knowledge to better manage cross-border regulatory and litigation risk in their businesses. For our non-Japanese listeners, the series will unlock some of the puzzling, and seemingly irrational, decisions by Japanese companies which can lead both to: (a) breaches of laws and regulations; and (b) poor handling of the fallout.
Episodes
Series overview
Corporate structure
Corporate culture
Challenges responding to investigations
-
July 7
EP.13Paralysis in the face of ‘difficult’ decisions
-
July 21
EP.14Dissembling in investigative interviews
-
September 1
EP.15Disregarding new information because the decision has already been made
-
September 15
EP.16No legal privilege in Japan
-
September 29
EP.17Third-Party Committees – ‘own goal’ no. 1
-
October 13
EP.18Why the template for interacting with Japanese regulators should not be relied on outside Japan
Mindsets following regulatory scrutiny
Speakers
This series is intended to provide general information only. It does not constitute legal advice from the firm. The opinions expressed are the personal views of the presenters and do not necessarily represent the views of the firm. References to particular laws and regulations may be intentionally omitted. Please always consult a lawyer for advice in relation to particular cases or questions.