.jpg)
The TSE censured Mizuho Securities Co., Ltd. ("Mizuho Securities") for the act of obtaining undisclosed customer information from a parent bank and using the undisclosed information for solicitation purposes. The TSE also requested Mizuho Securities to submit a business improvement report that includes (i) a review of the internal management system and related customer information management system based on the TSE’s admonition, as well as clarification of management’s position on the violation; (ii) creation and implementation of a plan to prevent a recurrence with the purpose of ensuring appropriate business independence from and mutual checks and balances with the parent bank; and(iii)raising awareness among directors and employees towards legal compliance, conducting necessary compliance training, and enhancing internal audits.
On June 19, 2006, the director of equity group products & solutions at Mizuho Securities obtained undisclosed information regarding 72 customers from a parent bank, Mizuho Corporate Bank, without obtaining a form of consent from these customers. On January 13, 2006, an employee in the 4th Market Business Department of Mizuho Securities obtained undisclosed information regarding 71 customers from Mizuho Corporate Bank without obtaining a form of consent from these customers. Moreover, the director of the 4th Market Business Department received the undisclosed information and directed 4 employees of the department to solicit for new customers using this information. The 4 employees made at least 3 solicitations for the purchase of securities.
The above is acknowledged to be an 'act of obtaining undisclosed customer information from a parent bank and using the undisclosed information for solicitation purposes.' as defined in Item (7), Paragraph 1 of Article 12 of the ex-Cabinet Office Ordinance Concerning Regulation, etc, of Securities Company Conduct based upon Item (3), Article 45 of the ex-Securities and Exchange Law.
