HOME

SESC Latest Topics No.24«May 2016» Last Updated : May 31, 2016

What’s New on the SESC Website

(Month of May 2016)

This page contains the latest in events, developments, and updates to the SESC website.

Topics

“Financial Instruments Business Operators under on-site inspection by the SESC”Available in Japanese

Press Releases

(Following press release is available in Japanese)

Financial Instruments Businesses etc.

May 31, 2016:	Recommendation for an administrative action against Dragoon Capital, Inc. «Summary» The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against Dragoon Capital, Inc. (hereinafter “the Company”), a Type 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, and that the Company is not adequately staffed to properly conduct financial instruments business.
May 31, 2016:	Notification of Inspection Results to Rot Adler Asset Management Co., Ltd. «Summary» The Director-General of the Kanto Local Finance Bureau announced the results of an inspection of Rot Adler Asset Management Co., Ltd. (hereinafter “the Company”), a Specially Permitted Business Notifying Person. Based on an inspection of the Company, the Director-General of the Kanto Local Finance Bureau identified that the Company has provided customers with false investment reports, solicited by false explanation, managed invested funds in a careless manner, and engaged in the type II financial instruments business without statutory registration.
May 24, 2016:	Recommendation for an administrative action against Sun Capital Management Co., Ltd. «Summary» The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against Sun Capital Management Co., Ltd. (“the Company”), a Type II Financial Instruments Business Operator and Financial Instruments Intermediary Service Provider. Based on an inspection of the Company, the SESC identified that the Company has dealt in private placement of funds, making false descriptions on business conditions.
May 24, 2016:	Notification of Inspection Results to ISC. LLC. «Summary» The Director-General of the Kinki Local Finance Bureau announced the results of an inspection of ISC. LLC. (hereinafter “the Company”), a Specially Permitted Business Notifying Person. Based on the inspection of the Company, the Director-General of the Kinki Local Finance Bureau identified that the Company has (i) engaged in Type II financial instruments business without statutory registration and (ii) managed funds in a sloppy manner.
May 24, 2016:	Notification of Inspection Results to Petrograd Investment. LLC. «Summary» The Director-General of the Kinki Local Finance Bureau announced the results of an inspection of Petrograd Investment. LLC. (hereinafter “the Company”), a Specially Permitted Business Notifying Person. Based on the inspection of the Company, the Director-General of the Kinki Local Finance Bureau identified that the Company has (i) engaged in Type II financial instruments business without statutory registration, (ii) entrusted unregistered operators with solicitation for fund equities and (iii) managed funds in a sloppy manner.
May 20, 2016:	Petition for a court injunction against Repair House Co., Ltd. and its manager. «Summary» The SESC filed a petition with the Tokyo District Court for an injunction against Repair House Co., Ltd. (“the Company”) and its manager to prohibit and suspend them from conducting the following activities. Based on an investigation of the Company, the SESC identified that the Company and its manager have engaged in Investment Advisory/Agency business and Type II Financial Instruments Business without statutory registration.
May 17, 2016:	Recommendation for an administrative action against Topgain, Inc. «Summary» The SESC recommended that the Prime Minister and the Commissioner of the FSA take an administrative action against Topgain, Inc. (hereinafter “the Company”), a Type II Financial Instruments Business Operator and a Specially Permitted Business Notifying Person. Based on an inspection of the Company, the SESC identified that it has been actively party to misconduct by disguising the appearance of funds to make it seem as if they had been invested by a Qualified Institutional Investor.
May 17, 2016:	Notification of Inspection Results to Stein Partners. LLC. «Summary» The Director-General of the Kanto Local Finance Bureau announced the results of an inspection of Stein Partners. LLC. (hereinafter “the Company”), a Specially Permitted Business Notifying Person. Based on the inspection of the Company, the Director-General of the Kanto Local Finance Bureau identified that the Company has (i) engaged in the type II financial instruments business without statutory registration, (ii) managed invested funds in a sloppy manner and (iii) made false statements to customers in relation to the conclusion of financial instrument transaction contracts and their solicitation.
May 17, 2016:	Notification of Inspection Results to Shiyuu. LLC. «Summary» The Director-General of the Kanto Local Finance Bureau announced the results of an inspection of Shiyuu. LLC. (hereinafter “the Company”), a Specially Permitted Business Notifying Person. Based on the inspection of the Company, the Director-General of the Kanto Local Finance Bureau identified that the Company has made false statements to customers in relation to the conclusion of financial instrument transaction contracts and their solicitation, and has misappropriated funds.

Market Misconduct

April 26, 2016:	Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of Medrx Co., Ltd. «Summary» The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 19,650,000 yen against an offender who had committed market manipulation in violation of the Financial Instruments and Exchange Act. Based on an inspection, the SESC determined that the offender had committed market manipulation by purchasing a large amount of shares, by opposing purchase and sale orders, and by purchase orders of shares of Medrx Co., Ltd. at a higher price than the contracted price. Through these techniques, the offender intended to cause fluctuations in market prices in his/her favor.

April 26, 2016:

Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of Medrx Co., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 19,650,000 yen against an offender who had committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offender had committed market manipulation by purchasing a large amount of shares, by opposing purchase and sale orders, and by purchase orders of shares of Medrx Co., Ltd. at a higher price than the contracted price.

Through these techniques, the offender intended to cause fluctuations in market prices in his/her favor.

Site Map

Providing Information to the SESC
Press Releases &Publications Page list Open: Financial Instruments Businesses etc; Market Misconduct; False Disclosure Statement; Others; International relations; Brochure (PDF); Annual Report
About the SESC Page list Open: Meet the Commissioners; Strategy & Policy of the SESC; Overview and Organization
Guidelines
Contact Us
SESC Latest Topics
Other Links