(4)In Japan, the Japanese solvency regime is laid down in the Insurance Business Act and Insurance Business Ordinance. Japan has an independent insurance supervisor with the necessary powers and resources to carry out its tasks, the Japanese Financial Services Agency (JFSA). The JFSA has been working on the introduction of the new solvency regime based on Economic Value-based Solvency Ratio (ESR) with solvency calculation based on the new regime effectively starting in the fiscal year ending on 31 March 2026. Insurers and reinsurers must submit extensive reporting material to the JFSA, and the JFSA has wide-ranging powers to restructure or wind-up insurers and reinsurers in difficulties. For both life and non-life undertakings, supervisory intervention can be triggered by three different thresholds, defined as different ‘Solvency Margin Ratios’ (SRM), expressed as a ratio of double the own funds divided by a capital requirement named the ‘Total Risk’. The ‘Total Risk’ metric covers underwriting risks, interest rate and market risks, operational risk and the catastrophe risk. Internal models are accepted for catastrophe and minimum guarantee risks. The JFSA has the power to impose certain remedial measures even if the highest threshold for supervisory intervention is not breached, including by requiring insurers to adopt measures to improve their profitability, credit risk, stability or liquidity risk. When the SRM is below 0 %, the JFSA may order the total or partial suspension of the business. The JFSA is also a signatory to the IAIS MmoU since June 2011. On 30 January 2023, EIOPA signed a cooperation framework with the JFSA on cooperation in the area of insurance supervision. JFSA staff are subject to stringent professional secrecy requirements. JFSA rules and practices adequately protect confidential information provided by foreign supervisors. All present or former JFSA staff are required to keep confidential any information which they receive in the course of their duties. Unauthorised disclosure can result in disciplinary sanctions, criminal investigations and punishment. Information received from foreign supervisors and indicated as confidential is treated accordingly and will only be used for the purposes agreed with the foreign supervisor.