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Securities and Exchange Surveillance Commission of Japan (SESC) recommended Japan Financial Services Agency (FSA), in charge of the supervision of banking activities, to apply measures in respect of Credit Suisse’s brokerage division in Japan. However, SESC did not specify what exactly measures should be applied.
The Japanese regulators’ attention was attracted by the fact that the Swiss company’s analyst transferred confidential information about a certain company to his colleague from the sales department, as well as to at least one client; their names were not specified. As SESC said, the question is about revealing the company’s profit forecast. As a result, the sales department has recommended purchasing the company's shares to at least 33 customers.
Securities and Exchange Surveillance Commission stated that Credit Suisse Securities (Japan) Ltd. used improper management public information about the companies. The Commission sees main cause of the problems in insufficient measures to ensure the internal control over employees after downsizing.
Credit Suisse, in turn, said that it would take the necessary measures and "will continue to make efforts to improve the internal control system".
This is already the second case. In December, Japanese regulators detected leakage of information on leading securities transactions in the company. In December, Japan's Financial Services Agency has imposed sanctions on the local brokerage unit of Deutsche Bank AG, after one of its analysts sent to the sales department and one of the customers an e-mail with confidential information about a certain company’s profit. Then, regulators ordered the German bank to take measures to prevent such incidents.
Securities and Exchange Surveillance Commission carries out inspections on behalf of the Agency's financial services and has the right to make recommendations to the agency.
source: wsj.com
The Japanese regulators’ attention was attracted by the fact that the Swiss company’s analyst transferred confidential information about a certain company to his colleague from the sales department, as well as to at least one client; their names were not specified. As SESC said, the question is about revealing the company’s profit forecast. As a result, the sales department has recommended purchasing the company's shares to at least 33 customers.
Securities and Exchange Surveillance Commission stated that Credit Suisse Securities (Japan) Ltd. used improper management public information about the companies. The Commission sees main cause of the problems in insufficient measures to ensure the internal control over employees after downsizing.
Credit Suisse, in turn, said that it would take the necessary measures and "will continue to make efforts to improve the internal control system".
This is already the second case. In December, Japanese regulators detected leakage of information on leading securities transactions in the company. In December, Japan's Financial Services Agency has imposed sanctions on the local brokerage unit of Deutsche Bank AG, after one of its analysts sent to the sales department and one of the customers an e-mail with confidential information about a certain company’s profit. Then, regulators ordered the German bank to take measures to prevent such incidents.
Securities and Exchange Surveillance Commission carries out inspections on behalf of the Agency's financial services and has the right to make recommendations to the agency.
source: wsj.com
