SESC Latest Topics No.79＜February 2022＞

Recommendation for administrative disciplinary action against Shinsei Investment Management Co., Ltd.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against Shinsei Investment Management Co., Ltd. (hereinafter "the Company"), an Investment Management Business Operator, Investment Advisory/Agency and Type II Financial Instruments Business Operator.

Based on an inspection of the Company, the SESC identified that the Company had failed to engage in investment management business (i) with the due care of a prudent manager for customers with discretionary investment contracts, and (ii) with the due care of a prudent manager for and with loyalty to the beneficiaries of publicly offered investment trusts.
 

Recommendation for an administrative monetary penalty payment order against market manipulation relating to shares of MITSUBA Corporation.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 825,000 yen against an individual investor who committed market manipulation in violation of the Financial Instruments and Exchange Act.
 
Based on an inspection, the SESC determined that the individual investor had committed market manipulation for the purpose of inducing the sale and purchase of securities through pushing down the share prices of MITSUBA Corporation by placing layering sell orders at higher prices, and placing sell orders at lower prices than the last commitment value.
 
Through these techniques, the individual investor 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.
 
On March 29 2019, the SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order against the individual investor who used fraudulent means in violation of the Financial Instruments and Exchange Act, and on May 30 2019, the Commissioner of the FSA made a decision on the administrative monetary penalty payment order against the individual investor.
 

Recommendation for an administrative monetary penalty payment order against an officer of a corporation engaged in negotiation to conclude a contract with Mitsui Sugar Co., Ltd. for committing insider trading related to shares of the Company.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 270,000 yen against an officer of a corporation engaged in negotiation to conclude a contract with Mitsui Sugar Co., Ltd. (hereinafter, “the Company”).
 
Based on an inspection, the SESC determined that the officer had committed insider trading by purchasing shares of the Company, using insider information, in violation of the Financial Instruments and Exchange Act.

Recommendation for an administrative monetary penalty payment order against a recipient of information from an employee of LEOPALACE21 CORPORATION (hereinafter, “the Company”) who committed insider trading related to shares of the Company.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 18,500,000 yen against a recipient of information from an employee of LEOPALACE21 CORPORATION  (hereinafter, “the Company”).
 
Based on an inspection, the SESC determined that the recipient of information had committed insider trading by purchasing shares of the Company, using insider information, in violation of the Financial Instruments and Exchange Act.