- Short-selling in breach of Securities & Exchange Law
During the period between April 2001 and February 2002, Dresdner placed a number of its customers' short-selling orders without legally required confirmation to the customers and disclosure to the stock exchange that the orders are short-selling.
During the period between December 2001 and February 2002, Dresdner placed a number of short-selling orders on its own account without legally required disclosure to the stock exchange that the orders are short-selling. In addition, Dresdner was found to have placed short-selling orders at the lower prices than the latest executed and published ones.The acts above are found to violate the Article 26-3 (1), (2), (6) and the Article 26-4 (1) of the Cabinet Order (Securities & Exchange Law) and Article 162 (1) (i) of the Securities & Exchange Law, both of which regulate short-selling.
- Securities business without prior authorization and non-securities businesses without prior approval of or notification to the FSA
Dresdner conducted the following securities business without legally required prior authorization and non-securities businesses without legally required prior approval of or notification to the FSA;
- Intermediation of trade in over-the-counter derivatives contract on a security.
- Intermediation of credit derivative transactions.
- Intermediation of cash lending/borrowing.
- Intermediation of sale or purchase of monetary credit.
- Intermediation of trade other than one relating to securities
The acts above are found to violate the Article 7 of the Law on Foreign Securities Firms (LFSF), the Article 34 (3) and (4) of Securities & Exchange Law applied based on 14 (1) of the LFSF.
