Financial Instruments and Exchange Law:
The Financial Instruments and Exchange Law (金融商品取引法) (Kin'yū shōhin torihiki-hō), or FIEL promulgated on June 14, 2006 regulates real-estate investment and financing transactions in Japan and has become increasingly complex over the past decade. Many transactions involve sophisticated investment and debt structures and relationships such as a tokumei kumiai (TK), which are unique to Japan. For example, even in the case of a simple sale and purchase of a building, there may be complicated ownership issues, such as sectional or co-ownership rights, regulatory issues with respect to real estate transactions or construction, as well as onshore and offshore tax issues. Moreover, the purchase of trust beneficiary interests as opposed to the purchase of the actual real estate requires compliance with the Japan Trust Business Act and the FIEL of Japan.
In order to strictly comply with FIEL and the Japan Trust Business Act, Richwood Capital retains one of the most reputable law firms and tax corporations in Japan, which has an inter-disciplinary team of lawyers, tax and structuring specialists that includes both English and Japanese native speakers experienced in real-estate finance, regulatory and tax matters.
Investment into Japan must comply with FIEL and other regulatory requirements. For further information on FIEL, please see the Ministry of Finance website.
Please note that, with respect to investments in beneficiary interests in real-estate trusts or silent partnership investments with respect to such beneficiary interests, there is always the risk that the value of the underlying real estate or the beneficiary interests may decline due to, among other things, the volatility of the real-estate market, financing market conditions, general economic trends and conditions and regulatory, tax and other changes.