Press Release
June 30, 2003
Recommendation
Based on the inspection results of
Shinkin Securities Co., Ltd.


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 and other appropriate action pursuant to Paragraph 1 of Article 20 of the FSA Establishment Act based upon the results of the inspection of Shinkin Securities Co., Ltd. (located in Kyobashi, Chuo-ku, Tokyo; Hideo Kitajima as Representative Director and President; capitalized at 20 billion yen; staffed with 43 directors and employees), which found the following facts constituting violations of laws and regulations by Shinkin Securities Co., Ltd. and its directors and employee.


2. Facts Found
  • Act of obtaining from or furnishing to a parent juridical person, etc. undisclosed information of a customer

(1) In June 2001, Representative Director and President of Shinkin Securities Co., Ltd. in the course of the business gave orders in-house to obtain from its parent juridical person financial data on customers which were special information obtained by directors and employees of the parent juridical person that came to their knowledge through their lines of business, and from July 2001 onward obtained the special information on a monthly basis from the parent juridical person without any consent from the customers.


(2) In May 2003, Managing Director as well as General Manager at Bond Business Division of the company in the course of the business furnished to the parent juridical person information on the trend of orders for the sale or purchase of a security placed by a customer without any consent from the customer.



The foregoing acts of the company and its directors and employee are acknowledged to fall under the "act of obtaining undisclosed information of a customer from a parent juridical person, etc." and the "act of furnishing undisclosed information of a customer to a parent juridical person, etc." provided for in Item (7), Paragraph 1 of Article 12 of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company based upon Item (3), Article 45 of the Securities and Exchange Law.

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