The launch of the new FSA also marks another step forward in separating government administration of the financial sector from the finance ministry's core function of fiscal policy. The FSA was established two years ago in response to criticism that the finance ministry had too much decision making power. That was underscored by a series of scandals involving ministry officials and the financial industry. Under the restructuring, the agency absorbs the finance ministry's Financial System Planning Bureau whose tasks include preparatory work on drafting financial sector legislation. Head of the Supervisory Agency, Masaharu Hino will remain as commissioner, or head, of the reborn agency.

-- (Reuters)