Japan Advisory Ltd., a hedge-fund adviser, had its business registration revoked by the nation’s authorities and the securities watchdog recommended the company be fined for its involvement with insider trading of Nippon Sheet Glass Co. shares.
The Securities and Exchange Surveillance Commission recommended Tokyo-based Japan Advisory pay a penalty of 370,000 yen ($4,655) for breaching insider trading rules related to a Nippon Sheet Glass share offering in 2010, according to a statement by the watchdog. The registration was suspended for breaching securities laws related to insider trading, the Kanto Local Finance Bureau said today in a statement.
The case is among the latest to be brought to light by Japanese regulators since March as they examine share transactions before the announcement of public offerings. Financial Services Minister Tadahiro Matsushita took office earlier this month pledging to deepen the probe to restore confidence in financial markets.
Japan Advisory, while advising two foreign-based hedge funds, obtained information about Nippon Sheet Glass’s share sale from employees at a brokerage in talks to underwrite the offering, according to the SESC statement.
Under the punishment by the Kanto Local Finance Bureau, Japan Advisory must halt its discretionary investment advisory business, provide detailed explanations to clients on the incident and report to the authority within a month on improvements, according to the statement.
A person who answered the phone at Japan Advisory said she wasn’t authorized to speak to the press and declined to comment, adding that no one with authority was available for a comment. Calls to the company outside business hours were not answered.