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Today, Osaka Securities Exchange (hereinafter "OSE") imposed disciplinary action on Bansei Securities Co., Ltd. (hereinafter the "Firm") pursuant to Rule 42, Paragraph 1 (9) of the Regulations for Transaction Participants as follows.
Additionally, OSE requested the submission of a business improvement report pursuant to Rule 17 of said Regulations.
The business improvement report shall include
(1) Reestablishment of business management control system and internal control system through pursuing the cause of this violation of laws, rules and regulations and introducing preventive measures against recurrence of the violation;
(2) Implementing training, etc. of all officers and employees in order to foster the proper understanding and compliance with the laws, rules and regulations; and
(3) Clarification of the locus of responsibility in light of the disciplinary action.
- Disciplinary Action
OSE issued a reprimand to the Firm. - Reason for the Disciplinary Action
- (1) The firm’s act is acknowledged to be "With regard to Securities of which Public Offering or Secondary Distribution is subject to the main clause of Article 4, Paragraph 1 or the main clause of Article 4, Paragraph 2, its Issuer, a person who engages in Secondary Distribution of Securities, an Underwriter (including a person who, with regard to a General Solicitation for Securities Acquired by Qualified Institutional Investor (excluding in the Case Where Disclosures Have Been Made with regard to the Securities for which the general solicitation is made), carries out any of the acts specified in the items of Article 2, Paragraph 6, a Financial Instruments Business Operator, a Registered Financial Institution, or a Financial Instruments Intermediary Service Provider shall not have another person acquire such Securities or sell such Securities to another person through Public Offering or Secondary Distribution unless the notification made under Article 4, Paragraph 1 or 2 comes into effect." as defined in Article 15, Paragraph 1 of the Financial Instruments and Exchange Act.
- (2) The firm's act is acknowledged to be "an act of providing a customer with false information or with information that may mislead investment decision of a customer concerning the conclusion of a Contract for Financial Instruments Transaction or solicitation thereof" as defined in Article 117, Paragraph 1(2) of the Cabinet Office Ordinance on Financial Instruments Business, etc. (pre-revision of June 24, 2009) under Article 38(6) of the Financial Instruments and Exchange Act.
