Securities and Exchange Surveillance Commission s Initiatives. - Building on a Quarter-Century of Achievement -

Transcription

1 Securities and Exchange Surveillance Commission s Initiatives - Building on a Quarter-Century of Achievement -

2 Securities and Exchange Surveillance Commission s Initiatives - Building on a Quarter-Century of Achievement - Contents A Message from the Chairman p.2 Chairman and Commissioners p.3 Ⅰ Organization and Objections p.4 Ⅱ Organization and Number of SESC Staff Members p.5 Ⅲ A Quarter-Century of History at the SESC p.6 Ⅳ Market Surveillance p.8 Ⅴ Monitoring of Financial Instruments Business Operators p.10 Ⅵ Investigation of Market Misconduct p.13 Ⅶ Inspections of Disclosure Statements p.15 Ⅷ Investigation of Criminal Cases p.16 Ⅸ Strategy & Policy of the SESC p.17 Ⅹ Examples of Major Cases p.19 Ⅺ SESC Activities in Figures p.21 Ⅻ SESC s Major Publications p.22 1

3 A Message from the Chairman It has been 25 years since the Securities and Exchange Surveillance Commission ( SESC ) was established in In the meantime, we have worked to ensure fairness and transparency of securities and financial markets and to protect investors by exposing various violations of laws and regulations. Compared with the conditions when the SESC was set up, we believe that market participants have developed self-discipline, and markets have become fairer and more transparent, which people can be proud of to a certain extent. We appreciate the significant cooperation and support received from many relevant organizations and parties for this achievement. However, we are faced with diverse new challenges. In line with the remarkable IT development and a rapid progress of globalization, securities trading and financial instruments have been becoming more complex and advanced, and in parallel, the modus operandi of market misconduct, such as insider trading and market manipulation, has been becoming more sophisticated and diversified. Although listed companies have been raising their awareness of proper disclosure of the companies information, there is no end to violation of disclosure requirements and types and causes of the violation are diverse. Monitoring of financial instruments business operators finds that many operators have been developing their self-discipline but there is a not small number of operators who lack the sense of compliance. To address these problems, the SESC works to strengthen cooperation with relevant organizations and parties in exposing more diverse, complex, and sophisticated violations of laws and regulations, while ensuring accurate understanding of the latest state of the markets, and accordingly enhancing our capabilities of collecting and analyzing information. In addition, in the area of monitoring financial instruments business operators, the SESC endeavors to improve the effectiveness and efficiency of monitoring by conducting integrated and seamless onsite/off-site monitoring based on risk assessment of the operators in light of their business models. Moreover, the SESC is committed to exploring root causes of violations of laws and regulations, and providing information based on the findings in order to prevent similar violations from occurring or recurring. In a bid to promote further self-discipline of market participants, we continue our constructive dialogue with relevant organizations and parties, through which we can share the importance of enhancing fairness and transparency of the markets. For the continued growth of the Japanese economy, the SESC will work in close partnership with relevant authorities and self-regulatory organizations to conduct more effective and efficient oversight of the markets in order to ensure the development of fair, transparent, and trustworthy markets, as well as the protection of investors. We seek to demonstrate that we deserve the trust that you place on us. We thank you for your understanding and support. Mitsuhiro HASEGAWA Chairman Securities and Exchange Surveillance Commission March

4 Chairman and Commissioners Commissioner Yasushi HAMADA Chairman Mitsuhiro HASEGAWA Commissioner Mami INDO Yasushi Hamada was appointed SESC commissioner in December Previously, he served as the Senior Partner and Director of KPMG AZSA LLC, and the professor of Graduate School of Professional Accountancy, Aoyama Gakuin University. Mitsuhiro Hasegawa was appointed SESC chairman in December Previously, he served as the Chief Public Prosecutor of Nagoya District Public Prosecutors Office and the Superintending Public Prosecutor of Hiroshima High Public Prosecutors Office. Mami Indo was appointed as SESC commissioner in December Before joining SESC, she was the Senior Executive Director of Daiwa Institute of Research, Ltd. 3

5 Ⅰ Organization and Objections The SESC was established within the Financial Services Agency (FSA) in accordance with the Act for Establishment of the Cabinet Office and the Act for Establishment of the Financial Services Agency (Established in 1992). The SESC functions as a council, consisting of a Chairman and two Commissioners. Each member is appointed by the Prime Minister and functions as an independent agent. (Term of office: 3 years) The SESC aims to ensure the fairness and transparency of markets and to protect investors. Investigations of market misconduct including insider trading and market manipulation Inspections of violations in disclosure requirements by listed companies Monitorings of inappropriate practices by financial Instruments business operators Recommendations of administrative actions or administrative monetary penalty payment orders or filing criminal charges based on the results of the above investigations, inspections or monitorings Administrative Actions or Orders to Pay Administrative Monetary Penalty FSA Recommendations or Proposals Public prosecutors Monitoring Financial Instruments Business Operators, etc. (Violations of laws) Filing Criminal Charges Prime Minister Inspection Listed Companies, etc. (Violations of disclosure) Appointment (subject to Diet approval) SESC Chairman 2 Commissioners Investigation Market Misconduct (Insider trading/market manipulation) 4

6 Ⅱ Organization and Number of SESC Staff Members The Executive Bureau is composed of the following six divisions: Coordination Division, Market Surveillance Division, Inspection Division, Administrative Monetary Penalty Division, Disclosure Statements Inspection Division and Investigation Division. In addition to the Executive Bureau in Tokyo, the SESC has staff members at the Local Finance Bureaus, who perform mainly inspections of financial services providers located in their areas. There are 748 staff members in total(406 of which work for the Executive Bureau) as of March 31, 2018, the end of the fiscal year FSA Prime Minister SESC (Chairman Mitsuhiro Hasegawa Commissioner Yasushi Hamada, Commissioner Mami Indo) Appointment Local Finance Bureaus Hokkaido Number of Staff Members Started Petitions for Court Injunction Coordination Division Market Surveillance Division Office of Market Monitoring Inspection Division Administrative Monetary Penalty Division Office of Investigation for International Transactions and Related Issues Executive Bureau Overall coordination of the Executive Bureau Market oversight Collection & analysis of information Monitoring of financial instrument business operators Investigation of unregistered operators Investigation of market misconduct Investigation of market misconduct (cross-border transactions, etc.) Tohoku Kanto Hokuriku Tokai Kinki Chugoku Shikoku Kyushu Fukuoka Unified Inspections and Introduction of Administrative Monetary Penalty Enhanced Market Surveillance for Revitalizing Markets Criminal & Administrative Investigations FY2017:748 members (Including Local Finance Bureaus) FY2017:406 members (excluding Local Finance Bureaus) Disclosure Statements Inspection Division Inspection of disclosure statements Okinawa Investigation Division Investigation of criminal cases 5

7 Ⅲ A Quarter-Century of History at the SESC Since its establishment in 1992, the SESC has extended its functions as a market surveillance organization including administrative investigations, in addition to investigation of criminal cases Recognition of the need to move securities regulation to ex-post monitoring based on more transparent market rules, and to separate market surveillance from supervision of securities firms and other intermediaries July 1992 SESC established within the Ministry of Finance, consisting of two divisions: the Inspection Division and the Investigation Division June 1998 SESC moved to the Financial Supervisory Agency Jan SESC moved to the FSA in reorganization of Japanese central government ministries Apr. and July 2005 July 2011 Introduction of administrative monetary penalty system Delegation of authority to inspect disclosure statements and to conduct investigations to impose administrative monetary penalties to the SESC SESC reorganized to its current structure of six divisions: Coordination, Market Surveillance, Inspection, Administrative Monetary Penalty, Disclosure Statements Inspection, and Investigation Aug Office of Investigation for International Transactions and Related Issues was established within the Administrative Monetary Penalty Division to respond to market misconduct involving cross-border and other transactions 6

8 (Ref.) Administrative Monetary Penalty System The administrative monetary penalty system was introduced as an administrative measure to impose a financial penalty on persons who violate certain provisions of the FIEA. - Outline of Administrative Monetary Penalty System FSA This measure is intended to achieve the administrative objective of preventing misconduct and ensuring effectiveness of the regulation. Subjects of the administrative monetary penalty include: False statements in securities registration statements and annual securities reports, spreading of rumors, use of fraudulent means, market manipulation, and insider trading. FSA Commissioner 4.Designation of officials to participate in trial 6.Draft Decision 4.Designation of Trial Examiners Council Comprised of Three Trial Examiners Trial Procedures Office 3. Decision on Commencement of trial procedures 7.Decision of payment order, etc.(service of transcript of the written decision) If the SESC finds a violation as a result of an investigation of market misconduct or inspection of disclosure statements, the SESC will make a recommendation* to the Prime Minister and the Commissioner of the FSA to issue an order to pay an administrative monetary penalty. 2.Recommedation *After receiving a recommendation from the SESC, the FSA commences an administrative trial procedure by trial examiners. Upon receiving a decision by the trial examiners, the Commissioner of the FSA decides whether to order payment of an administrative monetary penalty. SESC 5.Trial Procedures Trial date (Date of preparatory proceedings) 1.Investigation or Inspection Violator (Respondent) <Casebook publication> The SESC publishes every year Casebooks that summarize examples of the SESC s recommendation for administrative monetary penalty payment order and others in the past. * See P.22 The SESC s Major Publications for details of published materials, including their URL. 7

9 Ⅳ Market Surveillance At the beginning of surveillance, the SESC gathers and analyzes a variety of information, and looks for signs of market misconduct. Market Monitoring : Gathering and analyzing a wide variety of information on markets Conduct forward-looking macro-economic analysis of economic conditions and trends Understand trends in both primary and secondary markets, and among individual companies (including new financial instruments and transactions) Receive tips from investors (6,000 to 7,000 tips per year) Review articles on Internet websites, in media, and in magazines Retain close relationships for sharing information with the listed company compliance divisions of Self- Regulatory Organizations * Office of Market Monitoring was established within the Market Surveillance Division in June 2016 to enhance its market monitoring function. Information sharing Examination of Transaction : Early detection of signs of market misconduct in securities trading Collect and analyze suspicious transaction data that may be related to market misconduct such as insider trading, market manipulation and use of fraudulent means (about 1,000 cases per year) Send highly suspicious cases to the investigation/inspection divisions Retain close relationships for sharing information with the surveillance divisions of Self-Regulatory Organizations Sharing information Sending cases Investigation or inspection divisions 8

10 Number of Cases Examined Number of Tips Received Category Fiscal Year * Category Fiscal Year * Total 1,043 1,084 1,097 1, Total 6,401 5,688 7,758 7,600 4,827 Market Manipulation Tips Received Insider Trading , By Internet 4,316 3,733 5,510 5,569 3,548 Others (e.g., Use of Fraudulent Means) By Telephone Call 1,518 1,375 1,689 1, (Ref.) Breakdown by Entity By Letter SESC By Visitation Local Finance Bureaus From Local Finance Bureaus and Others Breakdown by Topics Individual Stock 4,040 3,904 5,448 5,661 3,494 Issuer * The figures of fiscal 2017 are for the period from April 1, 2017 to December 31, Conduct of Financial Instruments Business Operators , Others (e.g., Opinion, Inquiry) 1,

11 Ⅴ Monitoring of Financial Instruments Business Operators The SESC monitors financial instruments business operators, to promote investors confidence in the market. Effective/Efficient Off-site Monitoring Improve the effectiveness and efficiency of monitoring by conducting integrated and seamless on-site/off-site monitoring of approximately 7,000 regulated institutions Conduct off-site risk assessment of the regulated firms business models and the appropriateness of its risk management in light of its business model Utilize risk-based approaches to decide which securities businesses to be subject to on-site monitoring with due consideration of various factors, including the results of off-site monitoring On-site Monitoring Review the appropriateness of business operations after in-depth analysis of their products and transaction strategies Address identified problems not only through just identifying violations of laws and regulations but also through conducting additional analysis to identify their root-causes through a review of management policies and strategy, governance, and personnel and remuneration policies Recommend administrative actions to the Prime Minister and the Commissioner of the FSA in response to serious violations 10

12 Petitions for Court Injunction In cooperation with investigative authorities, the SESC conducts investigations to prevent injury to investors from frauds caused by unregistered firms. The SESC can file petitions for court injunction against firms found to be violating the law to prohibit or suspend the violation. As necessary, the SESC may publicly disclose the name and other information of unregistered firms. Process Court (2) Petition for injunction (3) Hearing (4) Injunction SESC (1) Investigation by SESC Violation of the FIEA 11

13 (Ref.) Number of Operators Subject to Monitoring Increase to about 7 times Cumulative Total of Approx. 7,000 Firms Dec Type I Financial Instruments Business Operators 293 Registered Financial Institutions 1,050 Investment Management Firms 361 When SESC Was Established Domestic Securities Brokerages 216 (Dec. 1992) Foreign Securities Brokerages 49 (June 1992) Financial Futures Business Operators 216 (May 1993) Cumulative Total of Approx. 1,100 Firms Financial Institutions Licensed to Offer Securities Businesses (OTC) 619 (July 1993) Investment Corporations 88 Investment Advisors/Agencies 983 Type II Financial Instruments Business Operators 1,171 Financial Instruments Intermediaries 856 Persons Made Notification for Business Specially Permitted for Qualified Institutional Investors (QII Business Operators) 2,198 12

14 Ⅵ Investigation of Market Misconduct The SESC conducts timely investigations of possible market misconduct including insider trading and market manipulation. On-site inspections and interviews The SESC conducts on-site inspections and/or interviews with traders and/or listed companies to determine whether market misconduct, including insider trading, market manipulation, or use of fraudulent means (e.g. fictitious increase in capital) has occurred. Recently, the SESC has conducted investigations of insider trading cases involving matters of social concern, such as false disclosures by listed companies. When the SESC identifies a violation Recommendation to issue an order to pay an administrative monetary penalty The SESC will make a recommendation to the Prime Minister and the Commissioner of the FSA to issue an order to pay an administrative monetary penalty. Violators of insider trading generally fall into two categories, with the second category now accounting for more than half of investigations: corporate insiders (incl. executives and employees, persons who concluded contracts, and negotiators) and primary recipients of information (incl. trading partners, relatives, and friends). Increasing number of individual investors who engage in market manipulation do so via online trading. 13

15 (Ref.) Background of the Establishment of the Office of Investigation for International Transactions and Related Issues Feb The FSA signed IOSCO MMoU * Strengthened cooperation with overseas authorities (*) Framework of consultations, cooperation, and exchange of information among signatory securities supervisory authorities developed by the International Organization of Securities Commissions (IOSCO) IOSCO: International Organization of Securities Commissions MMoU: Multilateral Memorandum of Understanding As of Dec. 2017, 115 countries/regions have signed. Autumn 2010 Insider trading cases linked with large amount of public offerings Aug The Office of Investigation for International Transactions and Related Issues was established Specializes in investigating cross-border and professional trading activity that involves possible market misconduct Twenty-eight recommendations were issued by the Office between August 2011 and December

16 Ⅶ Inspections of Disclosure Statements The SESC inspects disclosure statements of listed companies in order to ensure appropriate disclosure. Gather and analyze information The SESC gathers and analyzes information from a macro-economic perspective. The SESC continuously monitors approximately 3,600 listed companies from a forward-looking perspective. Inspections of disclosed statements The SESC inspects disclosure statements (incl. securities registration statements and annual securities reports) submitted by listed companies to determine whether false statements has been made. Recommendation to issue an administrative monetary penalty payment order When the SESC identifies a violation If false statements with respect to a material issue are found in disclosed documents, the SESC may recommend the issuance of an administrative monetary penalty payment order. Even if such a recommendation is not made, the SESC urges the company to make voluntary improvement as necessary. Prevention of recurrence The SESC analyzes and identifies the root cause of misconduct to prevent recurrence and urges the company to build an appropriate disclosure structure. 15

17 Ⅷ Investigation of Criminal Cases The SESC investigates cases of serious breach of applicable laws to clarify the facts and files criminal charges. Investigation based on the FIEA Criminal suspect SESC Investigations of serious violations The SESC investigates cases of serious breach of applicable laws such as insider trading, market manipulation and submission of false securities reports. Voluntary investigation The SESC may question a suspect or witness of a criminal case and inspect articles that a suspect or witness possesses. Under search warrant The SESC may search a company and a residence of a suspect/witness and seize relevant documents under search warrant issued by a judge. *Certified Public Accountants and IT professionals (for digital forensics) participate in investigations. Filing Criminal Charges The SESC files criminal charges with public prosecutors offices against suspects based on the result of investigations. 16

18 Ⅸ Strategy & Policy of the SESC Building on a Quarter-Century of Achievement - Mission 1. Ensuring market integrity/protection of investors 2. Contributing to sound development of markets 3. Contributing to sustainable economic growth SESC s Vision on Market Integrity Compliance with rules and trust from all market participants <Key elements> 1. Proper disclosure by listed companies and issuers 2. Appropriate conduct and practices by market intermediaries 3. Self-discipline by all market participants 4. Effective market oversight with a high degree of professionalism Values Fairness Fair and independent oversight Accountability Holistic and rootcause analysis coupled with public outreach Forward-looking Perspective Early detection of signs of market misconduct Effectiveness and Efficiency Effective use of resources Strong Collaboration Working closely with SROs and other competent authorities, both domestic and overseas Commitment to Excellence Committing to achieve highest standards of oversight 17

19 Environmental Scan Global Macroeconomic Uncertainties Increasing Market Globalization Further Advancement of Information Technology Effective Deployment of Household Financial Assets Holistic market oversight Timely market oversight In-depth market oversight Strategic Objectives All new products/transactions All financial markets Bigger picture in addition to details Early detection of potential market misconduct Preemptive actions against market abuse Effective investigation and early corrective action Root-cause analysis Horizontal analysis for systemwide issues Concrete Measures 1. Intelligence Gathering 2. Prompt/ Effective Examination/ Investigation Forward-looking analysis of potential market misconduct from macro-economic perspective Enhanced cooperation with foreign authorities Oversight of all new products/ transactions Effective use of monetary penalty investigation Proactive response to crossborder matters Response to material market abuse with criminal investigation Effective risk-based monitoring of regulated entities 3. In-depth Analysis of Investigation Results 4. IT and HR Development 5. Cooperation with SROs and other stakeholders Root-cause analysis Leveraged use of outputs of oversight activities Enhanced public outreach Contribution to policy development for better market environment Contribution to international cooperation for market oversight Development of RegTech Response to FinTech development Enhanced expertise of SESC staff with a broader perspective Closer cooperation with SROs for effective/efficient market oversight Enhanced cooperation with various stakeholders for market integrity RegTech means the use of IT innovation in connection with regulatory and enforcement authority. Continuous Review of Market Oversight Approach

20 Ⅹ Examples of Major Cases Recommendations to Take Administrative Disciplinary Actions Recommendation based on on-site monitoring on MRI International Inc. April 26, 2013 Rescission of registration, business improvement order The company induced customers to buy shares of a fund that would invest in U.S. medical account receivables, but the fund s property was not managed separately from the company s individual property and was allocated for paying dividends to other customers without using the money invested by customers for the fund s business. The company also induced a number of customers to buy the shares of the fund by promoting them with false information, such as representing that these investments were allocated only to the fund s business or that dividends were paid from investment profits. Recommendation based on on-site monitoring on AIJ Investment Advisors Co., Ltd. March 23, 2012 Rescission of registration, business improvement order The company solicited many customers such as pension funds to execute discretionary investment contracts by using methods such as delivering false good performance of net assets of foreign investment funds invested based on discretionary investment contracts. [Criminal charges were also made] The company also delivered false investment reports to customers. [Recommendation only] Recommendations to Issue Orders to Pay Administrative Monetary Penalties Recommendation for administrative monetary penalties against Morgan Stanley MUFG Securities Co., Ltd. for market manipulation in relation to the shares in SEIBU HOLDINGS INC. December 6, 2016 (Monetary penalty: MJPY) A trader working at Morgan Stanley MUFG Securities Co., Ltd. placed a large amount of orders to buy shares in SEIBU HOLDINGS INC. at around best quotations with the aim of inducing trading of the shares although he did not intend to buy them. This led to a misunderstanding that the trading of the shares was thriving. In addition, the trader got involved in a series of transactions of buying, selling, and application to cause fluctuations in the share price in the market. Recommendation for administrative monetary penalties for submission of annual securities reports and offering disclosure documents containing false statements by Toshiba Corporation December 7, 2015 (Monetary penalty: 7,373.5MJPY) Toshiba Corporation understated the provision for loss on construction projects in the percentage of completion method and overstated sales, as well as understated the cost of goods sold and expenses of the visual, computer, and semiconductor businesses. 19

21 Criminal Charges Filed Filing charges of committing market manipulation of the shares of Stream Co., Ltd. November 21, 2017, etc. Tokyo District Public Prosecutors Office Seven suspects in conspiracy with others committed market manipulation by placing a series of purchase orders of Stream at prices above the best offer price and executing orders at increasing prices and placing purchase orders to support the price of the shares for the purpose of raising the price of the shares. They also conducted fake sales and wash sales. Filing charges against Arts Securities Co., Ltd. and others of conducting fraudulent means with regard to the Medical Accounts Receivable Securitized bonds Filing charges of committing market manipulation, spreading rumors, conducting fraudulent means and failing to submit Reports of Possession of Large Volume in relation to the shares of New Japan Chemical Co., Ltd. December 4, 2015, etc. Tokyo District Public Prosecutors Office Suspects committed market manipulation in relation to the shares by using methods such as raising the share price artificially by placing a large amount of market purchase orders and preventing the share price from falling by placing a large amount of limit purchase orders at prices lower than the previous quotation. Two of them spread rumors by publicizing false information on a website that the share price could rise sharply, and used falsified means to change the quotation. Then, using the changed quotation, suspects bought and sold the shares. One of them failed to submit Reports of Possession of Large Volume in relation to spreading of rumors and using fraudulent means. Filing charges against AIJ Investment Advisors Co., Ltd. of conducting fraudulent means in relation to execution of discretionary investment contracts July 9, 2012, etc. Tokyo District Public Prosecutors Office AIJ Investment Advisors solicited many pension funds to execute discretionary investment contracts by using methods such as delivering documents which stated false good performance of net assets of foreign investment funds invested based on the discretionary investment contracts. [Recommendation was also made] Filing charges against Olympus Corporation and others of submission of annual securities reports containing false statements March 6, 2017, etc. Chiba District Public Prosecutors Office Suspect A was the representative director of OPTI FACTOR which managed the issued company of Medical Accounts receivable Securitized bonds (MARS), Suspect B was the representative director of Arts Securities Co., Ltd which sold MARS and acting as an adviser and instructor of other securities firms, and Suspect C who was a director of Arts Securities, provided false information to other securities firms and made employees of other securities firms who did not know the actual investment performance of MARS, solicit customers of other securities firms to purchase MARS by using methods such as delivering proposals which included false information. [Recommendation was also made]. March 6, 2012, etc. Tokyo District Public Prosecutors Office Olympus Corporation, its directors and outside cooperators were filed by submitting annual securities reports which contained false statements in the total amount of net assets by using methods such as off-balance transactions of financial instruments with unrealized losses and recording of fictitious goodwill. [Recommendation was also made]. 20

22 Ⅺ SESC Activities in Figures Cate gory 1992 to , Disclosure Containing False Statements Market Manipulation Insider Trading Use of Fraudulent Means Disclosure Containing False Statements Spreading of Rumors, Use of Fraudulent Means Market Manipulation Insider Trading Others Policy Proposals Fiscal Year Number of Recommendations Recommendations to Take Administrative Actions Against Operators *2 Recommendations to Issue Orders to Pay Administrative Monetary Penalties Recommendations for Order to Submit Revised Report, etc. Number of Filed Criminal Charges Announcements of Inspection Results of QII Business Operators Petitions for Court Injunction *1 Total *Note1: The figures of fiscal 2017 are for the period from April 1, 2017 to December 31, *Note2: In line with the revision of FIEA (enforced in Mar. 2016), the SESC began to make recommendations to take administrative actions against QII Business Operators as well from FY

23 Ⅻ SESC s Major Publications Casebooks of Administrative Monetary Penalties & Inspection of Disclosure Documents URL (Japanese Version Only) Overview Compiled overview of cases of recommendations for administrative monetary penalty payment order and others made by the SESC to enhance transparency of market oversight administration and encourage market participants to become self-disciplined Annual Report URL Overview Summary of the SESC s activities over the year (Published every year under the provision of the Act for Establishment of the FSA) The SESC Newsletter URL (Japanese Version Only) Overview Provides the SESC s recent initiatives and message to the market to raise awareness SESC s 25th Anniversary Video URL (YouTube) Overview Commemorative video introducing the SESC s initiatives in the past 25 years and policies going forward 22

24 Providing Information to the SESC <Weekdays: 9:30 am 6:15 pm> Direct phone: +81-(0) <Available for 24 hours> Fax: +81-(0) SESC website: The SESC always welcomes information regarding suspicious market misconduct and/or any problem about investor protection. We use the information effectively in a variety of inspections and investigations as well as daily market surveillance. Please submit the information via our website, phone, fax or post. * Please note that the SESC does not receive individual requests for dispute resolution or investigations. * The SESC takes all possible security protection against the leak of the contents of the provided information including your personally identifiable information to the outside. (You can submit the information anonymously.) Securities and Exchange Surveillance Commission Kasumigaseki, Chiyoda-ku, Tokyo (Nearest exits of subways) ''Toranomon'' station on the Ginza Line: Exit No. 6 & 11 ''Kasumigaseki'' station on the Marunouchi, Hibiya or Chiyoda Line: Exit No. A 13 ''Kokkaigizidoumae'' station on the Chiyoda and Marunouchi Line: Exit No. 4 Insider trading Market manipulation Spreading of rumors False statements in annual securities reports Investment scams Suspicious transactions or funds Inappropriate inducement to financial instruments Issued by the SESC Secretariat in March 2018