SESC Latest Topics No.22«March 2016»

Last Updated : March 28, 2016

Recommendation for an administrative action against Premiere Securities Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against Premiere Securities Co., Ltd. (“the Company”), a Type I and II Financial Instruments Business Operator.

Based on an inspection of the Company, the SESC identified that it had serious problems concerning investor protection, such as investments in a number of funds managed by Specially Permitted Business Notifying Persons that were not certified as such by a Qualified Institutional Investor.

Recommendation for an administrative action against TOGAKU Securities Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against TOGAKU Securities Co., Ltd. (“the Company”), a Type I and II Financial Instruments Business Operator and an Investment Advisor/Agency.

Based on an inspection of the Company, the SESC identified that the situation is a case where such action is acknowledged to be “necessary and appropriate for the public interest or the protection of investors with regard to a Financial Instruments Business Operator’s business operations”, as stipulated under Article 51 of the Financial Instruments and Exchange Act.

Notification of Inspection Results to One Plus One Co., Ltd.

«Summary»

The SESC announced the results of an inspection of One Plus One Co., Ltd. (“the Company”), a Specially Permitted Business Notifying Person.

Based on an inspection of the Company, the SESC identified that it has problems concerning investments in funds managed by Specially Permitted Business Notifying Persons, has been actively party to misconducts by disguising the appearance of funds as if they had been invested by a Qualified Institutional Investor, and has managed funds in a sloppy manner.

Recommendation for administrative action against First Make Limited Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative action against First Make Limited Co., Ltd. (“the Company”), an Investment Advisor/Agency, a Financial instruments intermediary and a Specially Permitted Business Notifying Person.

Based on an inspection of the Company, the SESC identified that it has solicited customers by utilizing corporate information, has insufficiently managed corporate information and has been party to the submission of false financial statements by the listed company.

Recommendation for an administrative action against Global Report Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative action against Global Report Co., Ltd. (“the Company”), an Investment Advisor/Agency.

Based on an inspection of the Company, the SESC identified that it was not adequately staffed to properly conduct financial instruments business.

Petition for court injunction against F Support Co., Ltd., and its manager.

«Summary»

The SESC filed a petition with the Tokyo District Court for injunction against F Support Co., Ltd., (“the Company”) and its substantive manager to prohibit and suspend them from conducting the following activities. Based on the investigation of the Company, the SESC identified that it engaged in brokering for sales and purchase of listed stocks and trading initial public offerings to customers without statutory registration.

Recommendation to impose an administrative penalty order against two offenders who committed market manipulation related to shares of WiZ CO., LTD.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 3,820,000 yen against an offender (1)(Trade Labo, Inc.) and 11,520,000 yen against an offender (2) who committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offenders had committed market manipulation by purchasing a large amount of shares, by opposing purchase and sale orders, and by purchase orders of shares of WiZ CO., LTD. at a higher price than the contracted price.

Through these techniques, the offenders intended to cause fluctuations in market prices in their favor.

Recommendation to impose an administrative penalty order against an offender who used fraudulent means related to shares of inspec Inc.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 12,240,000 yen against inspec Inc. who used fraudulent means in violation of the Financial Instruments and Exchange Act. Based on an inspection, the SESC determined that the offender had used fraudulent means by buying shares of inspec Inc. for the purpose of causing a fluctuation of quotations on the shares, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against two offenders who received insider information from an officer of EMORI GROUP HOLDINGS Co., Ltd. for committing insider trading related to shares of EMORI GROUP HOLDINGS Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 1,070,000 yen against offender (1), and an administrative penalty order of 7,530,000 yen against offender (2).

Based on an inspection, the SESC determined that the offenders had committed insider trading by selling shares of EMORI GROUP HOLDINGS Co., Ltd. using the insider information provided, in violation of the Financial Instruments and Exchange Act.