Tokai Tokyo Securities states that the company has formulated in-house rules for controlling undisclosed corporate information, and that the Trading Supervisory Section of the company has sought to control such information in an appropriate manner and prevent unfair trading that makes use of such information. However, it was ascertained that the Manager at the Nagoya Corporate Finance Department failed to issue an internal report to the Trading Supervisory Section of undisclosed corporate information related to a company's stock split, the company being an issuer of over-the-counter securities.Consequently, the Trading Supervisory Section failed to take appropriate measures to control the information concerned. Moreover, the Manager revealed the information and other undisclosed corporate information regarding splits of stock of other over-the-counter securities issuers, held by Tokai Tokyo Securities, to a Director at the Retail Service Headquarters of Iida Securities Co., Ltd.
As mentioned above, Tokai Tokyo Securities has failed to take appropriate measures to control undisclosed corporate information, and has thus been conducting its business in conditions recognized as lacking sufficient internal control of undisclosed information from the viewpoint of preventing unfair trading.
The aforementioned act of Tokai Tokyo Securities is acknowledged to fall under the act of conducting business under Item (4), Article 10 of the Ordinance of Cabinet Office Concerning Regulation, etc. of Conducts of Securities Company based on Item (2), Article 43 of the Securities Exchange Law.
