(Provisional Translation)
February 6, 2002
Financial Services Agency
An administrative action against Barclays Capital Japan Ltd., Tokyo Branch
- The Securities and Exchange Surveillance Commission(SESC) conducted the inspection of Barclays Capital Japan Ltd., Tokyo Branch, (''the Branch'' hereafter), and found the following legal violations of the Securities & Exchange Law. (The SESC notified the findings to the Branch on January 30, 2002).
- Short-selling in breach of Securities & Exchange Law
During the period from January 2001 until November 2001, the Branch executed short-selling of stocks by clients' order without legally required disclosure of the fact of short-selling to the stock exchanges many times because staffs misunderstood an order-system and so on. And the Branch made a short sale at a price lower than the latest published price prior to the short sale.
The conduct above was found to violate the Article 26-3 (1), the Article 26-4 (1) of the Cabinet Order (Securities & Exchange Law) and Article 162 (1) (i) of the Securities & Exchange Law, both of which regulate short-selling. And a defect was found in the internal control.
- On the basis of the above findings, the FSA issued the following orders to the Branch:
- Improve the compliance with the Law
(1) | Strengthen the internal control system, secure strict compliance by the directors and staff, take preventive measures against recurrence of the above mentioned violation and clarify locus of responsibility. |
(2) | Work out concrete measures to root out short-selling in breach of the Law including a target date. |
For further information, please contact with the following:
Securities Business Division
Supervisory Bureau
FSA, JAPAN (Tel : 03-3506-6000)
Deputy Director : Atsushi SASAGAWA(ex.3370)
Section Chief : Yoshikazu HIRAI(ex.3356)
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