SESC Latest Topics No.2 «June 2014» Last Updated : June 30, 2014

What’s New on the SESC Website

(Month of June 2014)

Press Releases

(Following press release is available in English)

(Following press release is available in Japanese)

Financial Instruments Businesses etc.

June 17, 2014:

Recommendation for an administrative action against Life Style Investment Co., Ltdopen new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Life Style Investment Co., Ltd ("the Company"), Investment Advisory and Agency Business Operator. Based on the inspection of the Company, the SESC determined that the Company conducted the solicitation of foreign stocks and had the custody of customers’ money without statutory registration.

June 17, 2014:

Recommendation for an administrative action against Traffic Corporationopen new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Traffic Corporation. ("the Company"), an Investment Advisory and Agency Business Operator and a Specially Permitted Business Notifying Person.  Based on the inspection of the Company, the SESC determined that the Company had serious problems such as the misappropriation of funds and the conduct of fund solicitation without statutory registration.

June 13, 2014:

Recommendation for an administrative action against Bansei Securities Co.,Ltd.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Bansei Securities Co.,Ltd. ("the Company"), Type I Financial Instruments Business Operator. Based on the inspection of the Company, the SESC determined that the Company had serious problems concerning dealings of shipping-related private placement bonds from the viewpoint of conflict of interest management.

June 13, 2014: Recommendation for an administrative action against Bansei Asset Management Co.,Ltd.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Bansei Asset Management Co.,Ltd. ("the Company"), Investment Management Business Operator, Type II Financial Instruments Business Operator and Investment Advisory and Agency Business Operator. Based on the inspection of the Company, the SESC determined that the Company committed acts in violation of the duty of loyalty concerning Discretionary Investment Contract with pension funds.

June 13, 2014: Recommendation for an administrative action against Musashi Securities Co.,Ltd.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Musashi Securities Co.,Ltd. ("the Company"), Type I and II Financial Instruments Business Operator. Based on the inspection of the Company, the SESC determined that a dealer of the Company conducted market manipulation in futures trading and the internal check system of the Company was deficient.

June 6, 2014: Petition for a court injunction against UAG Co., Ltd.open new window

«Summary»

The SESC filed a petition to the Osaka District Court for an injunction against UAG Co., Ltd. ("the Company"), a Specially Permitted Business Notifying Person, to prohibit and suspend its solicitation of shares of collective investment schemes. Based on the investigation of the Company, the SESC identified the Company’s conduct of handling beyond the permitted number of investors as business without statutory registration.

June 4, 2014: Results of public comments regarding revisions of the "Inspection Manual for Financial Instruments Business Operators"open new window

«Summary»

In order to promote financial institution's efforts to sever relationships with antisocial groups, the SESC proposed to revise the "Inspection Manual for Financial Instruments Business Operators ". On June 4, 2014, the SESC published the results of public comments regarding the draft revisions of the manual, and began implementation of the manual as of that date.

May 30, 2014: Recommendation for an administrative action against Chart Master Inc.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to take an administrative action against Chart Master Inc. ("the Company"), an Investment Advisory and Agency Business Operator. Based on the inspection of the Company, the SESC determined that the Company conducted the intermediary services for over-the-counter FX margin trading without registration.

Market Misconduct

June 20, 2014:

Recommendation to impose an administrative penalty charge against a person who received insider information from an officer of a contractor of a tender offeror for committing insider trading related to shares of ROYAL ELECTRIC CO., LTD.open new window

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to impose an administrative penalty charge of 2,420,000 yen against an individual who received insider information from an officer of Mirai Consulting, Inc., a contractor of the tender offeror of shares of ROYAL ELECTRIC CO., LTD. Based on an inspection, the SESC determined that the person has violated the Financial Instruments and Exchange Act and committed insider trading by purchasing shares of ROYAL ELECTRIC CO., LTD. using the insider information.

June 20, 2014:

Recommendation to impose an administrative penalty charge against an employee of a contractor of a tender offeror and an individual who received insider information from the employee for committing insider trading related to shares of IMI Corporationopen new window

«Summary»

The SESC recommended the prime minister and the commissioner of the FSA to impose an administrative penalty charge of (i) 210,000 yen against an employee of Ernst & Young ShinNihon Tax Co. (present name is “EY JAPAN”), a contractor of the tender offeror of shares of IMI Corporation; and (ii) 420,000 yen against an individual who received insider information from the employee. Based on an inspection, the SESC determined that the employee, and the individual who received insider information from the employee, have violated the Financial Instruments and Exchange Act and committed insider trading by purchasing shares of IMI Corporation using the insider information.

May 30, 2014:

Recommendation to impose an administrative penalty charge against an officer of Aeon Co., Ltd. and three persons who received insider information from the officer, for committing insider trading related to shares of the Daiei, Inc.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty charge of (i) 1,970,000 yen against an individual who was an officer of Aeon Co., Ltd., the tender offeror of shares of the Daiei, Inc., at that time; and (ii) 4,000,000 yen in total against three persons who received insider information from the officer. The SESC determined that, based on the inspection, the officer of Aeon Co., Ltd. and three persons who received insider information from the officer have violated the Financial Instruments and Exchange Act and committed insider trading by purchasing shares of the Daiei, Inc. using the insider information.

False Disclosure Statement

June 16, 2014:

Filing criminal charges against Index Corporation Ltd. and its management for submission of a false securities reportopen new window

«Summary»

The SESC files charges against Index Corporation Ltd. and its management with the Tokyo District Public Prosecutors Office for violations of the Financial Instruments and Exchange Act (submission of a false securities report). The suspects submitted a false consolidated financial statement in which padded ordinary profit (from ¥86 mil. to ¥917 mil.), net income before tax (from minus ¥605 mil. to ¥204 mil.), and net assets (from minus ¥411 mil. to ¥398 mil.), during the fiscal year from Sep. 2011 to Aug. 2012 while Index Corporation Ltd. was listed on JASDAQ at the Osaka Stock Exchange.

Others

June 11, 2014:

Publication of an annual report titled “The Activities of the Securities and Exchange Surveillance Commission”open new window

«Summary»

The SESC compiled the activities it conducted during April 2013 to March 2014 in “The Activities of the Securities and Exchange Surveillance Commission” and published it.

Site Map

top of page