Japan Regulator Seeks Credit Suisse Penalty
15 April 2016 - 7:00PM
Dow Jones News
TOKYO—Japan's securities-market regulator said Friday it has
asked the Financial Services Agency to punish Credit Suisse Group
AG in Tokyo for allegedly improperly providing nonpublic
information about a Japanese company to its clients.
The Securities and Exchange Surveillance Commission said
analysts at Credit Suisse obtained details about the unidentified
Japanese company's earnings revisions before its announcement and
provided such information to a number of customers in September and
October last year.
A sales representative who received the information also
solicited at least 33 customers to buy stocks of the company, the
SESC said.
Credit Suisse said in a statement that the company has taken the
matter seriously. It added: "We'll work on improving our internal
control."
The SESC asked the FSA to punish the Swiss bank saying its
internal control didn't function sufficiently following the
downsizing of that division. Lack of internal control "is
identified as the root cause of the problems," the market watchdog
said.
In December last year, the FSA ordered Deutsche Securities to
improve its business practice in Tokyo after that brokerage was
involved in a similar incident. At that time, Deutsche Securities
in Japan received the sanction for allegedly obtaining details
about an unidentified Japanese company's earnings before it
announced its financial results in December 2014. The information
was then sent to 21 officials in Deutsche Securities' sales
division.
Write to Atsuko Fukase at atsuko.fukase@wsj.com
(END) Dow Jones Newswires
April 15, 2016 04:45 ET (08:45 GMT)
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