SESC Latest Topics No.25«June 2016» Last Updated : June 28, 2016

What’s New on the SESC Website

(Month of June 2016)

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

Topics

Press Releases

(Following press release is available in English)

(Following press release is available in Japanese)

Financial Instruments Businesses etc.

June 10, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made false or misleading descriptions regarding important information for the sale of bonds.

June 10, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made false or misleading descriptions regarding important information for the sale of bonds.

June 10, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made misleading descriptions regarding important information for the sale of bonds.

June 10, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made false or misleading descriptions regarding important information for the sale of bonds.

June 9, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has (i) made misleading descriptions regarding important information for the sale of bonds, (ii) had problems concerning investor protection in Specially Permitted Business and (iii) made investments that were not certified as such by a Qualified Institutional Investor in a number of funds managed by Specially Permitted Business Notifying Persons.

June 7, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made false or misleading descriptions regarding important information for the sales of bonds, and that the situation is a case where an administrative 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.

June 7, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made false descriptions or misleading descriptions regarding important information for the sales of bonds.

June 7, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has made misleading descriptions regarding important information for the sales of bonds.

June 7, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that it has made misleading descriptions regarding important information for the sales of bonds.

June 3, 2016:

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

«Summary»

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

Based on an inspection of the Company, the SESC identified that the Company has operated Specially Permitted Business inappropriately, has engaged in Type II financial instruments business without statutory registration and has not been adequately staffed to properly conduct Investment Advisory/Agency business.

June 3, 2016:

Notification of Inspection Results to Sola Co., Ltd.open new window

«Summary»

The Director-General of the Tokai Local Finance Bureau announced the results of an inspection of Sola Co., Ltd. (hereinafter “the Company”), a Specially Permitted Business Notifying Person.

Based on the inspection of the Company, the Director-General of the Tokai Local Finance Bureau identified that the Company has disguised the appearance of funds to make it seem as if they had been invested by a Qualified Institutional Investor and had a person without statutory registration as a type II financial instruments business operator solicit fund equities.

Market Misconduct

June 7, 2016:

Recommendation to impose an administrative penalty order against an employee of a tender offeror of Nihon Inter Electronics Corporation for committing insider trading related to shares of Nihon Inter Electronics Corporation.open new window

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 130,000 yen against an employee of a tender offeror of Nihon Inter Electronics Corporation.

Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of Nihon Inter Electronics Corporation using insider information, in violation of the Financial Instruments and Exchange Act.

June 3, 2016:

Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of Kyokuto Boeki Kaisha, Ltd. and four other securities.open new window

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 1,210,000 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 selling a large amount of shares of Kyokuto Boeki Kaisha, Ltd. and four other securities, for the purpose of misleading other persons into believing that the sale and purchase of the securities were thriving.

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

May 24, 2016:

Recommendation to impose an administrative penalty order against a contract negotiator of FreeBit Co., Ltd. (offender(1)) and an offender who received insider information from the contractor (offender(2)) for committing insider trading related to shares of FreeBit Co., Ltd.open new window

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 1,980,000 yen against offender (1), and an administrative penalty order of 3,770,000 yen against offender (2).

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

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