SESC Latest Topics No.81＜April 2022＞

Recommendation for administrative disciplinary action against AMI Co., Ltd.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative disciplinary action against AMI Co., Ltd. (hereinafter "the Company"), an Investment Advisor and Agency.

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 (i) had handled public offerings or private placements of foreign investment securities without statutory registration, (ii) had been lending its name to unregistered business operators, and (iii) had failed to secure a sufficient personnel structure and establish a necessary system for properly performing its investment advisory and agency business.

Recommendation for an administrative monetary penalty payment order against a recipient of information from an officer of JUST PLANNING INC. (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 19,220,000 yen against a recipient of information from an officer of JUST PLANNNING INC. (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.

Recommendation for an administrative monetary penalty payment order against market manipulation relating to shares of KAWADA TECHNOLOGIES, INC.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 585,000 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 (1) placing multiple sell orders of shares of KAWADA TECHNOLOGIES, INC. (hereinafter “the Company”) around the best ask quotation and purchasing the shares of the Company at the lower price, (2) canceling the sell orders and placing multiple purchase orders around the best bid quotation or placing purchase orders against his/her own sell orders, and (3) selling the shares of the Company at the higher prices.
 
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 23, 2018, 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 committed market manipulation in violation of the Financial Instruments and Exchange Act, and on April 23, 2018, the Commissioner of the FSA made a decision on the administrative monetary penalty payment order against the individual investor.