In June 2001, Representative Director and President of Shinkin Securities Co., Ltd., in the course of the business, gave in-house orders to obtain from its parent corporation financial data on customers. This data is special information acquired through the course of business by the parent corporation and was obtained by the Representative Director without the consent of the customers. The Representative Director retrieved the information this way on a monthly basis from July 2001 onward.
Furthermore, in May 2003, a Managing Director as well as the General Manager in the Bond Business Division of the company furnished to the parent corporation information on the trend of orders for the sale and/or purchase of securities placed by customers without the consent of the customers.
The foregoing acts of the company and its directors and employee are acknowledged to fall under the "act of obtaining undisclosed information of a customer from a parent corporation, etc." and the "act of furnishing undisclosed information of a customer to a parent corporation, etc." provided for in Item (7), Paragraph 1 of Article 12 of the Cabinet Office Ordinance Concerning Regulation, etc. of Conducts of Securities Company based upon Item (3), Article 45 of the Securities and Exchange Law.
