SESC Latest Topics No.105 ＜June 2025＞

Last Updated : June,13 2025

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.

March 14,
2025:

Recommendation based on Inspection Results for SIVEX Corporation.open new window

<Summary>
 As a result of the SESC’s inspection of SIVEX Corporation (Notifier of Specially Permitted Business for Qualified Institutional Investors, etc.), the SESC found that the company had made false filings, etc. and had failed to appropriately conduct Specially Permitted Business for Qualified Institutional Investors, etc. Therefore, on March 14, 2025, the SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative actions.
 Specifically, the Company organized 10 of 34 funds under its management to make remittances related to the provision of services for introducing an overseas financial product STERLING HOUSE TRUST Series 7 Greenback Program (Sterling House Trust) established by an overseas corporation, STERLING HOUSE GROUP LTD. However, the Company made false notifications regarding the organization of these funds, for the purpose of disguising such remittances as fund dividends.
 In addition, for 22 of the 34 funds under its management, the Company commissioned unregistered business operators to solicit offers to acquire equity in investment in silent partnerships, had them solicit such offers from investors, and attracted a total of approximately 6 billion yen from 148 investors over the period between December 2019 and October 2023.
March 28,
2025:		 Recommendation based on Inspection Results for Tachibana Securities Co., Ltd.open new window

<Summary>
 As a result of the SESC inspection of Tachibana Securities Co., Ltd. (hereinafter "the Company"), which is a Type I Financial Instruments Business Operator, the SESC found that the company had inappropriate business operations for sales of domestic stocks. Therefore, on March 28, 2025, the SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative actions.
 Specifically, regarding solicitation of domestic stocks targeting elderly customers, the Company’s sales representatives repeatedly provided them with false information about the profits and losses of the stocks they sold, for the purpose of earning fees. In addition, even though the Company was given warnings about inappropriate solicitation in an inspection by a self-regulatory organization in 2023, the sales representatives repeated such solicitation for the purpose of earning fees.
 As a result, customers conducted excessive transactions and incurred excessive fees.
April 11,
2025:		 Recommendation based on Inspection Results for G&D Advisors Co., Ltd.open new window

<Summary>
 As a result of the Director-General of the Kanto Local Finance Bureau’s inspection of G&D Advisors Co., Ltd. (hereinafter "the Company"), which is an Investment Advisor/Agency, it was found that the Company had (i) failed to work faithfully on behalf of its customers in providing its investment advisory business, (ii) provided customers with false information, etc. in connection with the solicitation of financial instrument transaction contracts, and (iii) provided special benefit to customers in connection with financial instruments transaction contracts. Therefore, on April 11, 2025, the SESC recommended that the Prime Minister and the Commissioner of the FSA take administrative actions.
 The details are as follows:
(i) General Manager A, who was head of the Company’s investment advisory business, purchased certain stocks before the Company provided investment advice on them and sold them afterwards. General Manager A’s conduct was problematic from the perspective of conflict of interest. In addition, the Company overlooked General Manager A’s conduct, and had failed to establish a control environment to prevent it. As a result, the Company failed to work faithfully on behalf of its customers in providing its investment advisory business.
(ii) The Company solicited investment advisory contracts by providing false information, such as that the Company obtained information ahead of other companies from a (fictitious) information provider with a track record of accurately predicting surge in certain stocks. In addition, the Company solicited investment advisory contracts by making a misleading representation that the Company obtained highly reliable information about events that would impact share prices, such as corporate acquisitions.
(iii) General Manager A provided special benefit equivalent to a total of 8.88 million yen to some customers who filed complaints about the Company's investment advice, to have them continue the investment advisory contracts, by extending the duration of the contracts and providing investment advice without compensation.
April 25,
2025:		 Petition for a court injunction against Black Clover Limited and its manager.open new window

<Summary>
 Based on an investigation of Black Clover Limited (hereinafter, “the Company”) of the Republic of Seychelles, the SESC identified that the Company and Shungo Sakamoto, the Representative of the Company, engaged in the following business without registration: (i) public offering or private placement, as well as intermediation for the purchase and sale, of interests in collective investment schemes under foreign laws and regulations, and (ii) management of interests in collective investment schemes under foreign laws and regulations. The SESC filed a petition with the Tokyo District Court for an injunction to prohibit and suspend the Company and Shungo Sakamoto from conducting the aforementioned activities.
 

False Disclosure Statement

March 28,
2025:

Recommendation for an administrative monetary penalty payment order against ImageONE Co.,Ltd. for making false statements in its disclosure documents.open new window

<Summary>
 The Securities and Exchange Surveillance Commission (SESC) made a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency impose an administrative monetary penalty order of 65,070,000 yen against ImageONE Co., Ltd. (hereinafter, “the Company”). As a result of an inspection from a disclosure-regulation perspective, the SESC recognized that the Company made false statements in the Annual Securities Reports and Securities Registration Statement that it submitted due to improper accounting treatment. 

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