SESC Latest Topics No.42«February 2018»

Recommendation for an administrative disciplinary action against Growth Advisors Co., Ltd.

«Summary»

The SESC recommended that the prime minister and the commissioner of the FSA take an administrative disciplinary action against Growth Advisors Co., Ltd. (hereinafter the “Company”), an Investment Advisor/Agency.
This recommendation is based on findings made in an inspection of the Company, under which the director-general of the Kanto Local Finance Bureau identified that the Company had failed to establish a control environment to prevent its officers and employees from engaging in self-dealing and investment advisory that utilize customers’ transactions to pursue their self-interest.

Recommendation to impose an administrative penalty order against an officer of a contract negotiator of Anshin Guarantor Service Co.,Ltd. and against an offender who committed insider trading related to shares of Anshin Guarantor Service Co.,Ltd. using the information provided from an officer of Anshin Guarantor Service Co.,Ltd., and against an officer of Anshin Guarantor Service Co.,Ltd.

«Summary»

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose administrative penalty orders of 5,540,000 yen against an officer of a contract negotiator of Anshin Guarantor Service Co.,Ltd. (hereinafter referred to as “offender (1)”), and of 5,030,000 yen against an officer of Anshin Guarantor Service Co.,Ltd. (hereinafter referred to as “offender (2)”), and of 10,070,000 yen against an offender who received the information from offender (2) (hereinafter referred to as “offender (3)”).
Based on an inspection, the SESC determined that offender (1) had committed insider trading by purchasing shares of Anshin Guarantor Service Co.,Ltd. using insider information, and that offender (2) had communicated the insider information to offender (3), and that offender (3) had committed insider trading by purchasing shares of Anshin Guarantor Service Co.,Ltd. using insider information in violation of the Financial Instruments and Exchange Act.

Filing criminal charges of committing insider trading of the shares of TOSHIBA TEC CORPORATION against two suspects.

«Summary»

（Provisional Translation）

The SESC filed charges against two suspects with the Tokyo District Public Prosecutors Office for violation of the Financial Instruments and Exchange Act (FIEA). The conduct underlying the charges is as described below.
About October 16, 2015, suspect A who was an employee at the Finance & Accounting Division of TOSHIBA TEC CORPORATION (“TOSHIBA TEC”), listed on the first section of the Tokyo Stock Exchange, Inc., came to know in the course of his/her duty a material fact pertaining to its business or other matters, that TOSHIBA TEC had suffered damage in the course of performing its operations by posting an extraordinary loss.
Suspect A and Suspect B, an acquaintance of Suspect A, intended to make profits by selling TOSHIBA TEC shares prior to the announcement of the material fact and buying back the shares after the announcement. Suspects A and B in conspiracy sold a total of 160,000 shares for a total of 71,780,000 yen in the Tokyo Stock Exchange, Inc., under the name of Suspect B via a securities firm between October 19, 2015 and November 5, 2015, prior to the announcement of the material fact, although there is no exemption clause applicable under the FIEA.