In January 1997 and January 1998, HSBC Securities solicited securities transaction from a certain customer (a securities investment advisor, which provides discretionary investment service) with a promise to make a payment to the customer under the pretext of advisory fee, in return for orders from the customer.
The foregoing is acknowledged to fall under the ''act of soliciting business from any customer with a promise to provide any special benefit to the customer, in connection with the sale or purchase of, or any other form of transaction in, a security'' provided for in Item (2), Article 2 of the Ministerial Ordinance Concerning Prudential Standards, etc. of Securities Company (before the Ordinance No.33 of Prime Minister's Office and Ministry of Finance of 1998 became effective on December 1, 1998).
Financial Services Agency suspended HSBC Securities from commissioned sales and purchases of stocks of the Tokyo Branch from August 4 to 6, 2003 except for the execution of transactions contracted on or before July 25.
