Earlier this year, Japan's Securities and Exchange Surveillance Commission's (SESC) issued its "Basic Inspection Policy and Inspection Program for Business Year 2010." The core theme of the 2010 Program is that inspections should be conducted efficiently, both from the perspective of the scarce staffing resources of the SESC and from the perspective focusing on financial intermediaries that pose either potential systemic risks or significant risks to end investors. This article, the first in a series by the author on compliance with Japanese financial regulations, explores the priorities of the 2010 Program and includes recommendations for offshore compliance managers reviewing local compliance staff and procedures.

Other articles in the series:

• Regulatory Registrations Under Japan's Financial Instruments and Exchange Law 
• What Is the Best License for a Private Equity or Hedge Fund Manager in Japan?
• Real Estate Fund Manager Registrations Under Japan's Financial Instruments and Exchange Law
• Private Equity and Hedge Fund Licenses: Understanding the Investment Side 

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