SESC Latest Topics No.94＜November 2023＞

Recommendation for administrative disciplinary action against MIKI SECURITIES CO., LTD.

<Summary>

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative disciplinary action against MIKI SECURITIES CO., LTD. (hereinafter "the Company"), a Type I Financial Instruments Business Operator.
This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau identified that the business operations of the Company had been in violation of the Principle of Suitability with regard to solicitation of acquiring financial instruments.

Recommendation for an administrative monetary penalty payment order against market manipulation relating to shares of FALTEC Co., Ltd. and other securities.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 940,000 yen against an individual investor who committed market manipulation in violation of the Financial Instruments and Exchange Act.
 
Based on an inspection, the SESC determined that the individual investor had committed market manipulation for the purpose of inducing purchase and sale of securities through (1) placing multiple sell orders of shares of FALTEC Co., Ltd. (hereinafter “the Companies”) at higher prices and purchasing the shares of the Company at lower prices, and (2) placing multiple purchase orders of shares of the Companies at lower prices and selling the shares of the Company at higher prices.
 
Through these techniques, the individual investor intended to mislead other persons into believing that purchase and sale of the securities were thriving, and to cause fluctuations in market prices in his/her favor.