SECURITIES AND EXCHANGE
SURVEILLANCE COMMISSION
June 19, 2001
The Securities and Exchange Surveillance Commission (SESC) conducted an
inspection of Société Générale Securities (North Pacific) Ltd., (Société
Générale) based on provisions of the Law on Foreign Securities Firms (LFSF), and
found a legal violation described below.
Today, the SESC sent a recommendation to the Prime
Minister and the Commissioner of Financial Services Agency (FSA) to take a
disciplinary action against Société Générale, pursuant to Article 20(1) of the
FSA Establishment Law.
- Solicitation with promise of special profit
 |
From January to June 1998, with the
involvement of a Vice Manager of its Tokyo Branch, Société Générale
solicited several corporate customers with promises to avoid
realizing a redemption loss of a note which the customers purchased
before, by a scheme where the conditions of the note would be
altered mainly in order to defer its redemption loss. In fact the
value of the note just before redemption was almost nothing. |
 |
From March 1995 to June 1998, with the
involvement of the General Manager of the Tokyo Branch, Société
Générale solicited a customer (a securities investment advisor) with
a promise to provide rebate towards orders from the customer under
the pretext of advisory fee. |
(Violation of a Ministerial Ordinance, Article 50(1)(vi) of the Securities and
Exchange Law, and Article 17(1) of the LFSF prior to the amendment of 1998.)
|
Contact Person: S. Araki, International Section, SESC
Tel. 03-3581-7868 |
Return