|
The
comments from Financial Services Agency Commissioner Hideki Ito
come as the government has been on a push to channel more of the
country's $15 trillion in household assets into investments.
Under Prime Minister Fumio Kishida, Japan overhauled its
tax-free NISA accounts from this year, raising caps on annual
investment amounts and making balances permanently tax exempt up
to a certain level.
The result has been a surge in the new NISA accounts since the
start of this year.
Monday's 12.4% sell-off - the second-largest drop in Tokyo
market history - appeared to spark concern among retail
investors with some brokerages reporting a flood of calls on
Tuesday morning when the market re-opened.
It also marked the first major market turmoil since the NISA
programme had been overhauled. As of March there were
approximately 23 million NISA accounts with around $267 billion
invested through them.
Financial institutions that work directly with investors should
respond carefully, Ito said, "especially with clients who have
just started a NISA account and are anxious," he told Reuters in
an interview on Monday that was embargoed until Wednesday.
Ito said firms should educate investors on the benefits of
long-term, diversified investment, using historical data.
Ito, who assumed his position in July, said the regulator was
also pushing more broadly to bolster financial and market
literacy in Japan.
Kishida wants to see household investment income doubled to ease
reliance on the public pension system as Japan ages.
(Reporting by Miho Uranaka and Anton Bridge; Writing by David
Dolan; Editing by Kim Coghill)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
