Table of Contents

View Executive Summary . . .

1. Executive Summary

2. Market Overview
2.1          HNWI Psychology and Wealth
2.2          Administrative Environment
2.3          Market Participants
2.4          Pitfalls and Prospects

3. Perceptions of Interviewees
3.1          Private Banks: (i) Domestic (ii) Foreign
3.2          Professional Advisors
3.3          Regulating Ministries
3.4          Other Observers

4. Reference Material

Important Subsequent Event

The FSA launched an investigation of Citigroup Private Bank in early November 2003. This was prefigured in much of the comment of the interviewees as regards a number of issues running as common threads: conflict of interest, "informed consent", securities marketing versus private banking, Swiss-style versus US-style etc. This investigation could be of crucial importance in determining the shape of private banking in Japan into the future. In the opinion of Analytica, possibly even more importantly, the results of this investigation could begin to establish a framework for the prudential regulation of retail financial products in Japan on a transparent basis. In prior cases, the FSA has taken refuge in form over substance "rekkyoshugi" formulae. It is to be hoped that there will be a clear enunciation of a substance over form regulatory philosophy. This entails a switch from 18th century to 21st century bureaucrat practices and admittedly represents a major challenge.

View Executive Summary . . .

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