SESC Latest Topics No.5 «September 2014»

Last Updated : September 26, 2014

Recommendation for Administrative Monetary Penalty Payment Order for Market Manipulation of 10-year Japanese Government Bond Futures

Recommendation for an administrative action against Zai Consulting Co., Ltd.

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to take an administrative action against Zai Consulting Co., Ltd. (“the Company”), a Financial Instruments Intermediary Service Provider. Based on an inspection of the Company, the SESC identified that it had its employees conduct duties of sales representatives without statutory registration of sales representatives.

Notification of Inspection Results to Kazuhiko WATANABE

«Summary»

The directors-general of the Kinki Finance Bureau notified Kazuhiko WATANABE (“the Person”), a Specially Permitted Business Notifying Person, of inspection results.
Based on an inspection of the Person, the directors-general of the Kinki Finance Bureau identified that the Person has engaged in Type II Financial Instruments Services and Investment Management Business without statutory registration, and has submitted a notification of changes containing a false statement.

Petition for a court injunction against ES plus Co., Ltd. and its manager.

«Summary»

The SESC filed a petition with the Nagoya District Court for an injunction against ES plus Co., Ltd. ("the Company") and its manager to prohibit and suspend its solicitation of shares in collective investment schemes. Based on an investigation of the Company, the SESC identified that it had solicited shares in collective investment schemes without statutory registration.

Court injunction against Granter Co., Ltd.

«Summary»

In response to a petition filed on August 6, 2014 by the SESC with the Tokyo District Court for an injunction against Granter Co., Ltd., and its two managers to prohibit and suspend its acting as a broker for discretionary investment contracts, and its solicitation of shares of foreign collective investment schemes, a court order was issued as per the content of the petition.

Recommendation for an administrative action against FX corporation

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against FX corporation ("the Company"), a Type I Financial Instruments Business Operator. Based on an inspection of the Company, the SESC identified that the company faced a situation in which its Net Assets and Capital Adequacy Ratio had fallen below the required statutory Net Assets and Capital Adequacy Ratio.

Recommendation to impose an administrative penalty order for a case of market manipulation related to shares of HOKUSHIN CO., LTD.

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to impose an administrative penalty order of 43,670,000 yen against the offender. The SESC determined, based on an on-site inspection, that the offender violated the Financial Instruments and Exchange Act and committed market manipulation by oppositely selling shares of HOKUSHIN CO., LTD. at a higher price than the contracted price, and consecutively purchasing shares of HOKUSHIN CO., LTD. at a higher price than the contracted price. The offender intended to mislead the market into believing that sales and purchase of the shares of HOKUSHIN CO., LTD. were thriving, and to cause fluctuations in market prices to be in his/her favor.

Recommendation to impose an administrative penalty order on an officer of Giken Kogyo Co., Ltd. for committing insider trading related to shares of Giken Kogyo Co., Ltd.

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to impose an administrative penalty order of 220,000 yen against an officer of Giken Kogyo Co., Ltd. Based on an inspection, the SESC determined that the person has violated the Financial Instruments and Exchange Act and committed insider trading by purchasing shares of Giken Kogyo Co., Ltd. using the insider information.

Recommendation to impose an administrative penalty order against Inspire,Inc. for violation of disclosure requirements

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to impose an administrative penalty order of 43,360,000 yen against Inspire Inc. ("the company"). Based on the inspection of the company's disclosure statements, the SESC determined that the company has made false statements in its Ongoing Disclosure Documents and Offering Disclosure Documents by recording assets as "Software in progress" without any underlying software development.