International Forum for Investor Education

Profiles of IFIE Members' Financial and Investor Education Programs

Japan Securities Dealers Association—Institute for Securities Education & Public Relations (JSDA)

Japan Securities Dealers Association—Institute for Securities Education & Public Relations (JSDA)
81-3-3667-8451
81-3-3666-8009
www.jsda.or.jp/html/eigo

Japan Securities Dealers Association (JSDA) is the sole corporative organization in Japan authorized by the Prime Minister under the Securities and Exchange Law (Paragraph 2 of Article 68), and consists of all the securities companies and registered financial institutions in Japan (as members of the association). The missions of the JSDA are: (1) to protect investors by ensuring fair and smooth trading in securities and other transactions by members of the association; (2) to promote the implementation of policy measures for the revitalization of the Japanese securities markets in order to contribute to the growth and development of the Japanese economy.

Financial and Investor Education Program Profile:

One of the special characteristics of household financial assets in Japan is that the proportion of cash deposits is extremely high, and the proportion of stocks, bonds, and investment trusts is remarkably low. To help shift Japan's indirect finance-oriented financial system to a direct finance-oriented system, JSDA has made disseminating knowledge and understanding of investment among the public and within the school system as one of its core activities.

JSDA continues to work with educational authorities to substantially expand the availability and content of educational programs about the securities market in the textbooks used in schools. At the same time, JSDA aims to expand the use of practical, hands-on educational materials nationwide.

JSDA provides its investor education information in print and electronically.

JSDA has the following Web sites (in Japanese):

JSDA's Web site, www.jsda.or.jp/, targets the general public and provides comprehensive information for investors related to JSDA's roles as a Self Regulatory Organization and trade association.

The Web site of the Institute for Securities Education & Public Relations of JSDA, www.skc.or.jp/index.php, addresses the general public with information on the educational work of the Institute.

www.e-104.net/ addresses the general public with information on educational seminars and events. This Web site also accepts online applications for participation in these seminars and events.

On this Web site, www.jsda.or.jp/html/watamachi/index.html, individual investors can find seminars and other events that securities companies provide in all regions of Japan.

www.shokenquest.jp/—This educational Web site for junior and senior high school students teaches knowledge about securities and finance through simulations—such as visiting an imaginary "Securities School" and "Securities Town." Site expansion plans include communicating with teachers and providing tools for educators.

The Web site of the not-for-profit organization "APROSIS", www.aprosis.com, supported by the Japanese securities industry, provides content on seminars for beginning investors; a speakers' bureau; and information for and about investment clubs.

www.cci-nenkin.jp/tokaido/—This Web site has free and fee-based areas of educational content related to defined contribution pension plans.

JSDA produces print guide booklets about stocks, investment trusts and other products for beginning investors. They are all in Japanese.

JSDA also establishes and supports Securities Information Offices, resource rooms stocked with securities-related informational materials for investors. These materials include newspaper articles, research reports from securities companies, financial statements of investment trusts and other information.

Other JSDA investor education activities and channels include:

Securities Investment Day events

A Speakers' Bureau of securities specialists to present at schools and investment clubs

Web site materials such as "Securities Quest" and "Stock Market Game"

Video materials

Internship program for middle and high school teachers

An essay competition on financial and economic education for university students.

JSDA's Web site (www.jsda.or.jp/html/chishiki/index.html) provides the details of these investor education initiatives (in Japanese).

Some of these investor education activities are conducted in cooperation with other related organizations.

What Works Particularly Well and Why:

Speakers' Bureau system—The system was established by JSDA and is now operated by the not-for-profit organization "APROSIS". Under the system, retirees from securities industry are dispatched as volunteer "securities counselors" to be lecturers in learning groups and seminars. The demand and need for these speakers has increased rapidly.

Stock Market Game—Simulated stock transactions (hands-on educational tool)—A lot of junior and senior high schools benefit because students can learn about the economy, finance and investments and factors that influence pricing such as politics, economics and natural phenomena.

How We Learn About Our Audiences' Investor Education Needs:

Audience feedback surveys at events for the general public

A triennial national survey on securities savings to gain understanding of the general publics' awareness of securities investments

Surveys targeted at school teachers all over Japan (related to investment education in the school system)

Study (focus) group of school teachers (related to investment education in the school system)

Different Delivery and Marketing Strategies to Reach Our Audiences, Educate and Help Them Use Our Materials:

JSDA puts emphasis on the Internet in order to provide information broadly.

JSDA also uses networks of teachers as focus groups.

Instructors visit places where JSDA investor education materials are used and provide explanation and advice.

Some of JSDA's investor education activities are conducted in cooperation with other related organizations:

"Securities Quest", which is the Web site for investor education mainly targeted at middle and high school students. This site was developed by JSDA, Tokyo Stock Exchange and other stock exchanges and the Investment Trusts Association.

"Stock Market Game", which is the Web site game where students compete to maximize the return in a simulated stock investment. JSDA co-operates this site with Tokyo Stock Exchange.

Deployment of securities specialists from the Speakers' Bureau to schools and investment clubs through APROSIS, a non profit investor education organization.

Seminars and events on Securities Investment Day, many of which are co-sponsored by JSDA, Tokyo Stock Exchange and other stock exchanges and the Investment Trusts Association.

How We Measure the Impact of Our Investor Education Programs:

For the "Stock Market Game", a hands-on learning program that JSDA has been providing since 1996, JSDA conducts a questionnaire survey every year in the schools that use the program and applies the results of the survey to the operation of the program in the following year.

JSDA does periodic assessments through questionnaire surveys about events JSDA provides for the general public. However, JSDA does not do so for other events.

Other Investor Education Initiatives:

JSDA provides alerts and warnings (e.g. warnings on "purchase of unlisted stocks", "stock price fluctuation after stock split", etc.) on its Web site (www.jsda.or.jp/) in Japanese.

JSDA provides information about financial services intermediaries—JSDA provides a list and web search service of securities dealers' offices and branches, as well as seminars scheduled to be held, in each city and region.

JSDA does research on investor education programs or policies. JSDA visited Europe and the United States in 2005 and did research on their investor education programs and policies. JSDA disseminates research findings to the related organizations.