SESC Latest Topics No.40«December 2017»

Last Updated : December 14, 2017

What’s New on the SESC Website

(Month of December 2017)

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

Press Releases

(Following press release is available in Japanese)


Financial Instruments Businesses etc.

December 12, 2017:

Recommendation for an administrative disciplinary action against Iwai Cosmo Securities Co.,Ltd.open new window

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against Iwai Cosmo Securities Co.,Ltd. (hereinafter the “Company”), a Type I and Type II Financial Instruments Business Operator.
This recommendation is based on findings made in an inspection of the Company, under which the director-general of the Kinki Local Finance Bureau identified that the Company had engaged in solicitation using information included in unpublished analyst reports and inappropriately handled the aforementioned information.
November 7, 2017:


 

Inspection results of NGI Capital LLC., FC Capital LLC. and E-RA Capital Inc. and recommendation for an administrative disciplinary action against FC Capital LLC.open new window

«Summary»

Based on an inspection of NGI Capital LLC., FC Capital LLC. and E-RA Capital Inc. (hereinafter the “Companies”), each being a Specially Permitted Business Notifying Person, the SESC identified that (i) the Companies had engaged in type II financial instruments business without statutory registration.
The SESC also identified that (ii) business operations of FC Capital LLC. (hereinafter the “Company”) had problems concerning investor protection. Specifically, the Company had failed to account properly for expenditure of a part of invested money of a fund for which the Company had engaged in solicitation.
The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against the Company with respect to the findings described in (ii) above.
October 24, 2017:

Petition for a court injunction against a manager of FGX LIMITEDopen new window

«Summary»

The SESC filed a petition with the Tokyo District Court for an injunction against a manager of FGX LIMITED, a director of FGX LIMITED, to prohibit and suspend him from conducting the following activities. Based on an investigation of FGX LIMITED, the SESC identified that the director had engaged in Type I financial instruments business without statutory registration.
October 13, 2017:

Recommendation for an administrative disciplinary action against The Yutaka Securities Co., LTD.open new window

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against The Yutaka Securities Co., LTD. (hereinafter the “Company”), a Type I and II Financial Instruments Business Operator.
This recommendation is based on the findings of an inspection of the Company, whereby the director-general of the Tokai Local Finance Bureau identified that a branch manager of the Company had (i) compensated some customers for losses incurred in securities transactions and (ii) conducted securities transactions solely in pursuit of his speculative profit.

 

Market Misconduct

November 21, 2017:

Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of Central Glass Co., 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 1,500,000 yen against an offender who 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 through bolstering share prices of Central Glass Co., Ltd. and four other securities by purchase entrustments without limit with closed conditions of shares of Central Glass Co., Ltd. and four other securities for the purpose of inducing the sale and purchase of securities.
Through these techniques, the offender intended to mislead other persons into believing that the sale and purchase of the securities were thriving and to cause fluctuations in market prices in his/her favor.
November 10, 2017:

Recommendation to impose an administrative penalty order against an employee of Bunkyodo Group Holdings Co., Ltd for committing insider trading related to shares of Bunkyodo Group Holdings 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 2,700,000 yen against an employee of Bunkyodo Group Holdings Co., Ltd.
Based on an inspection, the SESC determined that the offender had committed insider trading by selling shares of Bunkyodo Group Holdings Co., Ltd. using insider information, in violation of the Financial Instruments and Exchange Act.

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