Jurisdiction - Japan
Japan – Update On ADR In Financial Services Sector.

25 October, 2012


Legal News & Analysis – Asia Pacific  – Japan – Dispute Resolution


The Law Concerning the Promotion of the Use of Alternative Dispute Resolution Procedures” (the “ADR Promotion Law”) came into effect on 1 April 2007. 


Under the ADR Promotion Law 116, institutions from multiple sectors have to date acquired accreditation to help resolve civil disputes outside the Japanese public court system. As a result, the use of settlement procedures in Japan has expanded rapidly.


In the financial services sector, the “Financial ADR System” was adopted in October 2010, providing for resolution of disputes by eight designated dispute resolution organisations specified in finance-related laws. 


Under the Financial ADR System, both customers and business operators may file petitions for mediation to the appropriate dispute resolution organisation, and the onus is on the business operator to submit reports and documents.


The dispute resolution organisation may create a “special mediation plan” which must be observed by the business operator, unless a lawsuit is filed within a month. Limitation periods are frozen whilst mediation is attempted.  


As a result of the Financial ADR system, ADR within the financial services sector  is now very popular and is being used frequently. 



For further information, please contact:  


Mark Johnson, Partner, Herbert Smith Freehills


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