SESC Latest Topics No.30«November 2016»

Last Updated : November 25, 2016

Recommendation for an administrative action against CELL Co., Ltd.

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative action against CELL Co., Ltd. (hereinafter “the Company”), an Investment Advisor/Agency.

Based on an inspection of the Company, the SESC identified that the Company had made false statements to customers in relation to the conclusion of financial instrument transaction contracts and their solicitation, and had provided customers with conclusive evaluations on uncertain matters, thereby soliciting them to conclude financial instrument transaction contracts.

Recommendation for an administrative action against SQI Japan Co., Ltd.

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative action against SQI Japan Co., Ltd. (hereinafter “the Company”), an Investment Advisor/Agency.

Based on an inspection of the Company, the SESC identified that the Company had made false statements to customers in relation to the conclusion of financial instrument transaction contracts and their solicitation, and had made advertisements that are seriously misleading investors.

Recommendation to impose an administrative penalty order against three offenders who committed insider trading related to shares of ALBERT Inc. using the information provided from an officer of ALBERT Inc.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 3,020,000 yen against offender (1), of 1,390,000 yen against offender (2), and of 690,000 yen against offender (3), who all received insider information from an officer of ALBERT Inc.

Based on an inspection, the SESC determined that offender (1), offender (2) and offender (3) had committed insider trading by selling shares of ALBERT Inc. using the insider information provided, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against a contract negotiator of Nihon Seimitsu Co., Ltd. for committing insider trading and for communicating insider information related to shares of Nihon Seimitsu Co., Ltd., and against two offenders who committed insider trading related to shares of Nihon Seimitsu Co., Ltd. using the information provided.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 1,380,000 yen against a contract negotiator of Nihon Seimitsu Co., Ltd. (hereinafter referred to as “offender (1)”), of 140,000 yen against an offender who received the information from offender (1) (hereinafter referred to as “offender (2)”), and of 840,000 yen against an offender who received the information from offender (1) (hereinafter referred to as “offender (3)”).

Based on an inspection, the SESC determined that offender (1) had committed insider trading by purchasing shares of Nihon Seimitsu Co., Ltd. using the insider information and had communicated the insider information to offender (2) and offender (3), and that offender (2) and offender (3) had committed insider trading by purchasing shares of Nihon Seimitsu Co., Ltd. using the insider information provided, in violation of the Financial Instruments and Exchange Act.

Recommendation to impose an administrative penalty order against an offender who received insider information from an officer of the contract negotiator of a tender offeror of TOKYO KOHTETSU CO., Ltd. for committing insider trading related to shares of TOKYO KOHTETSU CO., Ltd.

«Summary»

The SESC recommended that the Prime Minister and the commissioner of the FSA impose an administrative penalty order of 5,770,000 yen against an offender who received insider information from an officer of the contract negotiator of a tender offeror of TOKYO KOHTETSU CO., Ltd.

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

Recommendation to impose an administrative penalty order against modulat.inc for making false statements in its disclosure document

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA impose an administrative penalty order of 19,560,000 yen against modulat.inc (“the company”). Based on an inspection of the company’s disclosure statements, the SESC determined that the company had made false statements in its ongoing disclosure documents and offering disclosure documents, which recorded fictitious sales, by conducting a circular transaction etc.