TSE also requested Meiwa Securities to submit a business improvement report regarding enforcement of its internal control, clarification of locus of responsibility and management policy, measures to prevent the recurrence of the violation below, and establishment of effective schemes for security of strict compliance by the directors and staff.
A Branch Manager of the Oyama branch, in the course of business, concluded contracts with clients to manage discretionary accounts, which enabled him to decide issues, volume, price, and whether to purchase or sell without obtaining the individual consent of the clients in early December, 2002.He accepted orders and executed them based on contracts from December 3, 2002 to September 18, 2003.
The above act is acknowledged to be an 'act of entering into a contract to manage a discretionary account' outlined in Item 5, Paragraph 1 of Article 42 under the Securities and Exchange Law.
