Regarding Administrative Actions against Credit Suisse Securities Co., Ltd.
April 25, 2016 Financial Services Agency Administrative actions against Credit Suisse Securities Co., Ltd. As a result of an inspection by the Securities and Exchange Surveillance Commission against Credit Suisse Securities Co., Ltd. On April 15, 2016, a recommendation was made to seek administrative disposition as it was recognized. In response to this recommendation, today (April 25), the following administrative actions were taken against the Company pursuant to Article 51 of the Financial Instruments and Exchange Act. 1. Facts related to recommendations (1) Inadequate management of corporate-related information In addition to providing analyst reports, etc. to customers such as hedge funds and asset management companies, we support the research sales of the equity sales department for customers such as hedge funds and asset management companies. The General Manager of the Equity Research Division instructed analysts to provide meaningful information directly to customers. have a goal. In fact, in addition to analyst reports, analysts provide customers and sales staff with information obtained from interviews with listed companies by telephone, e-mail, etc., and accompany customers in individual interviews with listed companies. We acquire and share information with customers through visits. In addition, since June 2015, analysts at the Company have been providing information to personnel in charge of self-trading in the same manner as customers. Among the information that analysts obtain from listed companies through interviews, etc., undisclosed information may contain corporate information. Left to Liszt's own judgment, almost no review was carried out either within the Equity Research Department or by the person in charge of compliance. For this reason, from September to October 2015, at least five cases of corporate information (three of which were published in analyst reports) were hardly examined for their applicability to corporate information. Served multiple customers. Regarding the management of corporate related information as described in (1) above, it was recognized that necessary and appropriate measures were not taken to prevent unfair transactions related to corporate related information. It is recognized as falling under Article 123, Paragraph 1, Item 5 of the Cabinet Office Ordinance on Financial Instruments Business, etc. based on Article 40, Item 2. (2) Solicitation by providing corporate-related information In September 2015, in an individual interview with Company A, a listed company, Analyst A disclosed corporate-related information (hereinafter referred to as (referred to as "Company A information"), the Company communicates the information to one of our sales representatives and at least one customer by telephone on the day following acquisition. Then, within the same day, the salesperson who received the information of Company A provided the information of Company A to at least 33 customers before it was made public by Company A and solicited the purchase of shares of Company A. . The act of soliciting the purchase of shares by the Company as described in (2) above is recognized as an act of soliciting customers to purchase and sell securities and other transactions by providing corporate information, and is subject to the Financial Instruments and Exchange Act. It is recognized as falling under Article 117, Paragraph 1, Item 14 of the Cabinet Office Ordinance on Financial Instruments Business, etc. based on Article 38, Item 8. 2. Contents of Administrative Punishment ○Business Improvement Order (1) Formulate measures to prevent recurrence, and ensure that these measures are implemented and established. (2) To verify the effectiveness of the measures to prevent recurrence that have been formulated. (Note) If any items are found to be inadequate as a result of the verification, the reason and improvement policy shall be reported. (3) Clarify the management stance on compliance with laws and regulations, foster company-wide awareness of compliance with laws and regulations and foster a healthy corporate culture, and otherwise enhance and strengthen the business management system and internal control system. (4) Regarding (1) to (3) above, the implementation status and verification results shall be reported in writing by June 3, 2016 (Friday). Subsequent reports shall be made every 3 months, and reports shall be made as needed.