SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION

The Director-General of Kanto Regional Finance Bureau conducted the inspection for the Toyo Securities Co., Ltd. (Toyo), based on a provision of the Securities and Exchange Law (SEL), and found legal violation described below.

The Securities and Exchange Surveillance Commission sent a recommendation to the Financial Reconstruction Commission (FRC) and the Commissioner of Financial Services Agency to take disciplinary action against Toyo pursuant to Article 31(1) of FRC Establishment Law on August 1, 2000.

(Representing the Payment of Certain Dividends)

Between the end of July, 1999 and April 21, 2000, with the involvement of the manager of its Nagoya branch, Toyo, in making solicitations of an unspecified large number of persons for the purchase of some stocks, made decisive representations that they would be annually offered a certain amount of money in dividends with respect to the stocks.

(Violation of SEL Article 171)

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