Press Release

July 11, 2002

Okasan Securities Co., Ltd.

1. Recommendation Issued

The Securities and Exchange Surveillance Commission(SESC) issued today a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (FSA) take appropriate measures pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act based upon the results of the inspection of Okasan Securities Co., Ltd.(hereinafter referred to as ''the company'')(located in Chuo-ku, Tokyo, Tetsuo Kato, the president and a managing director; with equity capital of 12.9 billion yen; staffed with approximately 100 employees including directors) that ascertained the following facts constituting violations of laws and regulations by the company and its employee.

2. Facts Ascertained

Conclusion of a contract for discretionary trading account transactions

A sales representative of the sales department at the Nagoy branch office concluded from December 7, 2000 to October 3, 2001,with some customers many times in connection with the acceptance of orders for the sale or purchase of stocks, a contract that allowed the employee to make a decision, without obtaining the customer's consent each time such transaction was made, as to the distinction, whether to sell or purchase, selection of the stocks, number of the stocks to be bought or sold, and price, and actually accepted orders and executed them between December 8, 2000, and April 5, 2002.

The employee's act of concluding the above contract is acknowledged to fall under the ''act of concluding a discretionary trading account transaction contract'' prescribed in Item(5), Paragraph 1 of Article 42 under the Securities Exchange Law.

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