Japan's fund management sector fear that a regulatory overreaction to the AIJ Investment Advisors scandal will add to a further hollowing out of Japan.
Morrison Foerster's Tokyo-based of counsel, Robyn Nadler, told IFLR the industry was growing increasingly concerned that the country's Financial Services Agency (FSA) may be overreact to what she viewed as an exceptional case.
Last month, the FSA suspended the operations of money management firm, AIJ Investment Advisors, after it was unable to account for the bulk of $2.6 billion in pension funds it managed on behalf of 123 clients.
Japan's financial services minister, Shozaburo Jimi, last week ordered a sweeping investigation into the finances of 265 other money management companies in Japan. Market participants in the country's investment management sector have since predicted more scandals...