Press Release
June 24, 2003
Recommendation
Based on the inspection results of
Crédit Agricole Indosuez Securities (Japan) Limited


1. Recommendation Issued

    The Securities and Exchange Surveillance Commission today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (FSA) take administrative disciplinary action pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act based upon the results of the inspection of Crédit Agricole Indosuez Securities (Japan) Limited (Tokyo Branch located in Kanda-Jinbocho, Chiyoda-ku, Tokyo; Christophe Lanne as Representative in Japan; staffed with approximately 70 employees including directors; hereinafter referred to as "CAI Securities"), which found the following facts constituting violations of laws and regulations by CAI Securities.


2. Facts Found
  • Act of soliciting business from any customer with a promise to provide any special benefit to the customer

    CAI Securities on March 19, 2002 solicited securities transactions from a certain corporate customer by promising to waive the customer's overdue obligation to repay the cost arising from the customer's own failure of delivering the stocks (referred to often as "fail cost") that the customer sold through placing the sell orders with CAI Securities, in return for continued transactions in the future.

    The foregoing is acknowledged to fall under the "act of soliciting business from any customer with a promise to provide any special benefit to the customer, in connection with the sale or purchase of, or any other form of transaction in, a security" provided for in Item (2), Article 4 of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company as applied by Paragraph 21 of Article 24 under the Ordinance of Cabinet Office Concerning Foreign Securities Firms based upon Item (9), Paragraph 1 of Article 42 under the Securities and Exchange Law as applied by Paragraph 1 of Article 14 under the Law on Foreign Securities Firms.

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