SESC Latest Topics No.63<December 2019>

Last Updated : December 23, 2019

What’s New on the SESC Website

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 6, 2019:

Recommendation for administrative disciplinary action against Katsumi Hotta (Trademaster labo).open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against Katsumi Hotta(Trademaster labo) (hereinafter, “the Person”), an Investment Advisor/Agency.
 
This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kinki Local Finance Bureau identified that the Person had been lending its name to unregistered business operators.

November 26, 2019:

Recommendation for administrative disciplinary action against New-S Securities Co., Ltd.open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against New-S Securities Co., Ltd. (hereinafter, “the Company”), a Type I Financial Instruments Business Operator and an Investment Management Business Operator.
 
This recommendation is based on findings in an inspection of the Company, under which the Director-General of the Kanto Local Finance Bureau identified that the Company had (i) caused persons who had not been registered as financial instruments businesses to solicit for the acquisition of securities, (ii) evaded inspections and (iii) had insufficient business management control environments and internal control environments.

Market Misconduct

    
November 8, 2019:
 
Recommendation for administrative monetary penalty payment order for market manipulation of shares of ISHIGAKI FOODS CO., LTD and 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 4,700,000 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 ISHIGAKI FOODS CO., LTD and other securities through purchase entrustments by placing a large amount of purchase orders of shares of ISHIGAKI FOODS CO., LTD and other securities at lower prices than the contracted prices, and by successive purchase orders at higher prices than the contracted prices, 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 1, 2019:
 
Filing of criminal charges for committing insider trading of the shares of PALMA CORPORATIONopen new window

<Summary>

The SESC filed criminal charges against two suspects with the Tokyo District Public Prosecutors Office for alleged violations of the Financial Instruments and Exchange Act (hereinafter,“FIEA”), which are insider trading and providing information on unpublished material facts.
The conduct underlying the charges is as described below.
 
Suspect A was an assistant manager of the administrative department of PALMA CORPORATION (hereinafter,“PALMA”), the shares of which were listed on the Mothers section of the Tokyo Stock Exchange (hereinafter,“TSE”). Suspect B was an acquaintance of Suspect A.
 
Ⅰ Around the middle of December 2017, Suspect A came to know a material fact in the course of his duties related to PALMA’s decision to conduct the solicitation of persons to subscribe for the shares that PALMA issues. Around late in the same month, before the publication of the a material fact, Suspect A provided information on the material fact to Suspect B for the purpose of having Suspect B gain profits by having Suspect B purchase PALMA shares. Accordingly, between early January 2018 and the middle of April 2018, before the publication of the material fact, Suspect B purchased a total of 3,000 shares for a total of approximately JPY 11 million on the TSE under its own name and the other’s name via a securities firm despite there being no applicable exemption clauses under the FIEA.
 
Ⅱ After receiving the information from Suspect A around late December 2017, Suspect B purchased a total of 3,000 shares for a total of approximately JPY 11 million on the TSE under its own name and the other’s name via a securities firm between early January and the middle of April 2018, before the publication of the material fact, despite there being no applicable exemption clauses under the FIEA.
October 11, 2019:
 
Recommendation for administrative monetary penalty payment order for insider trading of shares of Kozosushi Co., LTD.by a worker of the Company.open new window

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 14,490,000 yen against a worker of Kozosushi Co., LTD.
 
Based on an inspection, the SESC determined that the offender had committed insider trading by selling shares of Kozosushi Co., LTD., using insider information, in violation of the Financial Instruments and Exchange Act.
 

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