Legal Precautions to Know Before Sharing Investment Information on Websites and Blogs

—Unknowingly Violating the Law!? Cases That Constitute Investment Advisory and Agency Business—

In recent years, an increasing number of individuals and corporations have been sharing investment-related information through websites, blogs, and social media. The attempt to leverage professional expertise to attract readers and improve customer acquisition or credibility is a very meaningful endeavor.

However, on the other hand, "the way you provide that information might possibly fall under the category of Investment Advisory and Agency Business." If you share information while misunderstanding this point, you could unknowingly be in violation of the Financial Instruments and Exchange Act.

In this note article, while introducing the key points of the "Precautions for Providing Investment Information on Websites and Blogs" posted on my blog, I will explain what kind of information provision is legal and what form becomes problematic, and the points to consider when deciding whether to register for Investment Advisory and Agency Business.

For those who want to know the detailed content, please also take a look at my blog article introduced at the end of this article.

■ What are the conditions for information dissemination that "does not fall under" Investment Advisory and Agency Business?

Based on the views of the Kanto Local Finance Bureau and others, if the following conditions are met, it is considered that it does not fall under Investment Advisory and Agency Business, meaning that information can be provided without registration.

✔ List of Conditions

1. No need for member registration

2. Freely accessible (no restrictions such as passwords)

3. Information can be viewed by an unspecified number of people

4. Can be viewed for free

For example, "posting personal opinions about the future prospects of a specific stock for free on a blog accessible to anyone" is generally considered not to fall under Investment Advisory and Agency Business.

However, since there are exceptions depending on the specific content and format of the information provided, careful judgment is required.

■ Cases that are "highly likely to fall under" Investment Advisory and Agency Business

The following forms of information provision are considered highly likely to fall under Investment Advisory and Agency Business.

• Viewing requires member registration

• Access is restricted by password, etc.

• Provided only to specific persons

• Providing information for a fee

If you wish to provide investment information in this manner, it is recommended that you consider registering as an investment advisory and agency business in advance.

■ Checkpoints when considering registration

If you are thinking of developing your information dissemination on blogs or websites as a full-scale business, you need to consider the following points.

• Do you have the intention to provide investment information as your primary business?

• Is there someone involved with practical experience in the financial instruments business? (Registration is not possible without such experience)
  

• Is there a prospect of revenue to cover the **personnel and fixed costs (which can exceed 10 million yen per year in some cases)** required after registration?

• Can you accept the restrictions on personal investment imposed on the officers and employees of advisory firms?

After comprehensively assessing these points, it is important to design a legal and sustainable style of information dissemination.

■ For those who want to know more

The content introduced in this article is merely an overview.
Specific cases and practical judgment criteria are explained in detail in the following blog post.

🔗 Points to note when providing investment information on websites or blogs
→ Read the article

Please take a look at it as well to help you share information without any misunderstandings.

■ Conclusion

Precisely because it is an era where sharing information is easy, sharing information with a correct understanding of financial laws and regulations leads to improved credibility.

To avoid risks that cannot be excused by saying "I didn't know," it is essential as a business operator to deepen your understanding of legal regulations and registration systems.

I will continue to share practical information regarding the investment advisory and agency business and related systems through my blog and note. I would appreciate it if you could like and follow to stay updated.