NISA account holders can change financial institutions from October 1

Investors using the NISA (Nippon Individual Savings Account) system in Japan can change their designated financial institution starting October 1st each year. This allows individuals to switch to institutions that better suit their current lifestyle, such as those offering better customer support, lower fees, or a wider variety of products.

When changing institutions, existing investment trusts held under the NISA tax-exempt status do not need to be sold. They can remain at the original financial institution to continue growing tax-free. However, it is not possible to transfer these existing assets directly to the new institution's NISA account. To consolidate assets at a new institution, an investor must sell the current holdings and repurchase them, which would count against that year's annual investment limit.

The procedure for changing institutions typically begins on October 1st for the following year's quota. If an investor has already made NISA purchases in the current year, the change will take effect starting the next calendar year. The process involves requesting a notice of account closure from the current institution and submitting the necessary documentation to the new provider.