SESC Latest Topics No.50＜October 2018＞

Recommendation for an administrative action against Ohisama Energy Fund Co., Ltd.

<Summary>

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

This recommendation is based on the findings of an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau (hereinafter “the Kanto LFB”) identified that the Company had been in violation of the Business Improvement Order issued in May 2014 by the Kanto LFB.

Recommendation to impose an administrative penalty order against an offender who used fraudulent means related to shares of DAIICHI KIGENSO KAGAKU KOGYO CO., LTD. and six other stocks.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 730,000 yen against an offender who used fraudulent means in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offender had used fraudulent means related to shares of DAIICHI KIGENSO KAGAKU KOGYO CO., LTD. and six other stocks through sale and purchase entrustments without limit with closed conditions of these securities for the purpose of inhibiting the sale and purchase of securities.

Through the technique, the offender intended to mislead other persons into believing that the order statuses of the sale and purchase of the securities were maintained until closing and the sale and purchase of these securities before it affected market prices in his/her favor.