|
The Securities and Exchange Surveillance Commission (SESC) conducted
the inspection of Rabo Securities Asia B V Tokyo Branch (Rabo),
based on a provision of the Law on Foreign Securities Firms (LFSF),
and found legal violations described below.
The SESC sent a recommendation to the Prime Minister and the
Commissioner of Financial Services Agency (FSA) to take a disciplinary
action against Rabo, pursuant to Article 20(1) of the FSA Establishment
Law on January 26, 2001.
- Misstatements concerning securities and other transactions
On September 22, 1999, when selling a bond to several customers,
Rabo erroneously showed its unit price that did not include
its accrued interest. Although Rabo should have consulted with
all those customers about revising the unit price, it showed
a false revised unit price of the bond only to one major customer,
hiding the fact that the revised unit price included the accrued
interest for the whole customers; Rabo had schemed to make only
the customer with larger amounts of dealings bear the whole
accrued interest.
(Violation of a Ministerial Ordinance, Article 42 (1) (ix) of
the Security and Exchange Law (SEL), including the application
of Article 14 (1) of the LFSF)
- Provision of property gains to increase gains
In addition to the above action, Rabo offered its unit price
substantially lower than the proper price only to the other
remaining customers; consequently, to make them acquire property
gains, Rabo provided approximately 8,500,000 yen in total to
them.
(Violation of Article 42-2 (1) (iii) of the SEL, including the
application of Article 14(1) of the LFSF)
|