Services for Financial Institutions
One of the major features of our practice is that we have been continuously providing cutting-edge legal services in the field of finance as a legal counsellor to many financial institutions of various types, including the central bank, major banks, local banks, trust banks, securities companies, leading non-bank financial institutions, Internet banks, leasing companies, credit companies, and insurance companies (both life and non-life).
We provide a vast variety of services covering all areas of legal issues. We offer, in particular, highly comprehensive and specialized services with respect to day-to-day business activities of financial institutions, including (i) structuring and documentation, (ii) handling of legal issues arising in connection with exit strategies, (iii) management and collection of claims resulting from extension of credit and (iv) advice in business reconstructions.
We have also represented financial institutions in litigation, various bankruptcy related procedures and other dispute resolution procedures. Based on these experiences, we take pride in offering legal services that are only possible with a good overview of the whole range of financial transactions, including comprehensive expert advice backed by a high degree of expertise as well as documentation services of high practical value.
In addition to these services related to day-to-day business activities of financial institutions, we have also been providing legal advice on many critical issues of existential importance to financial institutions, such as (i) development of disposition schemes for bankrupt financial institutions and advice relating thereto, (ii) final disposal of non-performing loans held by major financial institutions, (iii) large-scale mergers and restructuring of financial institutions, and (iv) establishment of a financial holding company.
In the midst of globalization of financial transactions, further complication of financial products and their marketing channels as well as continuing diversification of management structures for financial institutions in recent years, we continue to provide legal assistance that meets the needs of clients, making the most of our accumulated know-how, expertise and legal insights.
Iwata Godo, as a legal counsellor to many financial institutions in various fields of finance, including the central bank, major banks, local banks, trust banks, leading non-bank financial institutions, securities companies, and debt collection companies, has been long offering legal advice with a high degree of expertise and practical value on such matters as (i) regulations under various laws (e.g., the Bank of Japan Act, the Banking Act, the Trust Business Act, the Act on Engagement in Trust Business by a Financial Institution, the Financial Instruments and Exchange Act, the Money Lending Business Act, the Act on Sales in Instalments, the Insurance Business Act, the Act on Servicers ), orders, ordinances and guidelines, (ii) compliance and (iii) preparing for regulatory inspections. The attorneys of Iwata Godo have excellent expertise as well as experience in regulations surrounding financial institutions and are prepared to advise in this highly specialised regulatory environment, the result of frequent and continuous legislation and regulatory amendments.
Further with respect to regulation, Iwata Godo provides many financial institutions with such services as (i) advice on appropriate business procedures and structures, (ii) assistance in filing notifications and other required information to the regulatory authorities, and (iii) measures to deal with regulatory problems if any arise.
At the same time, Iwata Godo is increasingly setting up training opportunities for its attorneys through secondment to financial institutions, including a major bank and a trust bank, so that we can share with clients our knowledge of current issues in financial institutions, and always be prepared to propose solutions that meet the practical needs of today’s business.
Iwata Godo offers such services as legal and practical advice as well as documentation for development of schemes for (i) syndicated loans, (ii) securitization of real estate, (iii) securitization of financial claims such as bank lending claims, non-performing loans, housing loan claims, accounts receivable, claims on fees for medical treatment and nursing care, (iv) securitization of other assets, such as intellectual property and movables, including automobiles and ships, (v) project finance, (vi) PFIs, (vii) acquisition finance, including LBOs and MBOs and (viii) other newly developed financial instruments and products. We also provide similar services to resolve issues arising in the aftermaths of development of schemes and in exit strategies.
We have advised in response to requests from clients in various different positions in deals, including that of lenders providing senior loans, mezzanine loans and subordinated loans respectively, an originator, a developer, an arranger, a trustee, an asset management company, an investor not in the position of a lender, and a credit rating agency.
We also offer advice and documentation services to clients in their efforts to raise funds in capital markets through private and public offerings of bonds, shares and other financial instruments.
In recent years, through secondment of member attorneys to major financial institutions, we provide training opportunities for our attorneys to share awareness of current issues and learn about development and improvement of financial instruments, taking practical business requirements into consideration.
In providing legal and practical advice and documentation services in finance-related areas, we take the resolution of possible disputes into consideration and thus provide consistent advice, from development of the scheme to resolution of disputes in the aftermath. Founded upon our wealth of experience in the field of dispute resolution including litigation, we have a unique and thorough back-up system for clients.
Collection of Claims
Iwata Godo has long been dealing with the collection of various claims, including loan claims and accounts receivable, traditionally as a legal counsellor to many financial institutions and corporate clients, and more recently for such entities as investment funds. We have also regularly advised clients on various legal issues surrounding debt collection procedures. In doing so, we have aimed at swift and efficient debt collection making active use of various procedures such as filing a petition in bankruptcy on behalf of the creditor, exercise of security right and right of exclusive preference, litigation, provisional seizure, provisional disposition, and utilization of officially notarized documents. We are also very experienced in dealing with antisocial forces and the settlements of complicated rights and obligations on real estate that are often required during the course of debt collection.
We work together as a team concentrating on debt collection and deal with procedures to collect not only such claims as loan claims held by banks and accounts receivable by corporate clients, but also other claims including lease receivables. We are also involved in all procedures of debt collection service (including execution of compulsory sale) conducted by “servicers” (debt collection companies) that belong to financial institutions.
Iwata Godo has also for many years been sending member attorneys as speakers to training sessions held by financial institutions to convey our know-how in collection and management of claims accumulated through our many years’ experience. Through such means we try to share with clients our knowledge of current issues.
With regard to non-life insurance, which was historically the first practice area of our firm, we have further developed our role as a pioneer in this field. We advise on regulations under the Insurance Business Act, assisting our clients in the development of their business models and plans in a manner consistent with regulatory requirements. The legal judgments in this work require a high level of expertise in the field, which we have.
Iwata Godo has contributed to the development of legal practice in non-life insurance in many areas, including litigation concerning insurance policy claims and insurance solicitation.
In the field of life insurance, we advise our life insurance clients on a large number of issues in the face of the increased complexity of financial regulations, including matters concerning life insurance solicitation such as collaboration with other financial institutions for over-the-counter sales of insurance at banks and expansion of sales channels through insurance agencies.
Publications Related to Financial Institutions and Finance
Kudo Ryohei's commentary on METI's April 22 Guidance on the financing of startups is available on the Shoji Homu Portal Site.
- KUDO Ryohei
Suzuki Tomohiro's commentary on the SESC's criminal complaint against SMBC Nikko Securities for market manipulation is available on the Shoji Homu Portal Site.
- SUZUKI Tomohiro
Tomita Yusuke authored "Non-Face-to-Face Transactions by Financial Institutions in the Covid Era (6): Deposit Transactions and eKYC" in the April issue of Ginkou Homu 21.
- TOMITA Yusuke
Fukasawa Atsushi's commentary on the Tokyo Stock Exchange's interim report on SPAC Listing is available on the Shoji Homu Portal Site.
- FUKASAWA Atsushi
Lectures, Seminars and Conferences Related to Financial Institutions and Finance
Kashiwagi Kensuke and Ito Nanako delivered a lecture titled "Basic Knowledge of Trust and Trading Operations for the Business of Trading in Trust Beneficiary Rights, Ranging from Registration Procedures to Compliance" at a seminar room of Kabushiki Kaisha Kinyu Zaimu Kenkyukai at Green Hill Building.
News Related to Financial Institutions and Finance
Okushi Kenichi is appointed as a Secretary of Real Estate Tech Association for Japan.
Hayashi Nobumitsu, who served as a Special Advisor at Iwata Godo, assumes office as COO, Senior Managing Director of the Japan Bank for International Cooperation.
Ueda Atsushi, Tanaka Takashi represented a bank in a case at the Tokyo High Court and a commentary article on its judicial decision made on April 28, 2016 (the decision retaining the conclusion of the Saitama District Court's decision made on October 2, 2015 and rejecting the assertion of the credit guarantee corporation which provided credit guarantee to the bank that, in the case where the main debtor is an anti-social force, the guarantee agreement should be exempted on grounds of invalidity due to miscomprehension and a breach of duty to investigate) appears in the Kinyu Shoji Hanrei No. 1493.
Ueda Atsushi, Tanaka Takashi represented a bank in a case at the Tokyo High Court and a commentary article on its judicial decision made on April 14, 2016 (the decision negating the bank's breach of duty to investigate, as a trial remanded from the Supreme Court by its judicial decision on January 12, 2016 holding that, in the case where a financial institution made a loan guaranteed by a credit guarantee corporation to a debtor who afterwards turned out to be an anti-social force, (i) the credit guarantee corporation's contention of invalidity of the guarantee agreement on the grounds of miscomprehension cannot be admitted, and (ii) when the financial institution is recognized to commit a breach of duty to investigate whether the main debtor is an anti-social force or not, the credit guarantee corporation's guarantee obligation will be exempted due to the financial institution's breach of the guarantee agreement) appears in the Kinyu Shoji Hanrei Vol. 1491
Motomura Takeshi, Okushi Kenichi, Eiguchi Manabu and others represented a financial institution in a case at the Tottori District Court and a commentary article on its judicial decision made on March 11, 2016 (claim for damages brought by a depositor against a bar association and a financial institution resulting from disclosure of the depositor’s bank account information by the financial institution to the bar association following an inquiry made by the bar association to the financial institution in accordance with Article 23-2 of the Attorney Act) appears in Kinyu Houmu Jijo No. 2040.
- Dispute Resolution and
- Economic Law and
- Intellectual Property Law and Information Technology Law
- Bankruptcy Law and
Corporate Reorganization/ Rehabilitation
- Labour Law
- Environmental Law and
Large-Scale Environmental Litigation