Press Release

9th November 2001

The Securities & Exchange Surveillance Commission conducted a compliance inspection of Tsubasa Securities Co., Ltd., pursuant to the Securities & Exchange Law 1948, and found law violations described below.

The SESC has sent a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency to take a disciplinary action against Tsubasa, pursuant to the FSA Establishment Law 1998.

Misstatements and Omission of Material Information

From April 2000 to September 2001, Tsubasa sold foreign shares and foreign bonds to many individual investors.

Selling those foreign securities, Tsubasa distributed explanatory notes, as sales material, which contained misstatements or omitted material information: for instance, annual net income per share or rating of bond-issuers.

Those actions above are deemed as violation of Article 4 (1) of the Ministerial Ordinance (Code of Conduct for Securities Companies) 1965 and Article 42 (1) (ix) of the Securities & Exchange Law 1948.

Contact Person:
S. Araki
International Section,

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