TOKYO, July 28 A small Japanese hedge fund has
made a rare challenge against financial regulators over a 2010
insider trading case, disputing a finding that one of its fund
managers acted on an insider tip of a share offering by energy
firm Inpex Corp.
The Securities and Exchange Surveillance Commission
(SESC)previously found a fund manager at Stats Investment
Management sold Inpex shares on insider information from a
Nomura Securities salesman, based on the salesman's admission of
providing information to Stats as well as to Nissay Asset
Management and Finno Wave Investments.
But the Nomura salesman, no longer employed by the brokerage
but working for an affiliate of parent Nomura Holdings,
told a public hearing on Monday that he did "not really
remember" tipping off the fund manager.
Stats, with $300 million under management, said the manager
had sold Inpex shares on July 6, 2010, two days before a
vaguely-worded comment on an electronic messaging system that
the SESC took to signal communication regarding Inpex.
Stats said it would take legal action against the government
if the Financial Services Agency, based on the SESC's
recommendation, decides to fine the company.
Stats Chief Executive Shogo Sekimura said he was determined
to protest the innocence of the fund manager, who has not been
named as part of the proceedings. "Fund managers are treasures
for a company like us, so we will fight to the end," he told
Reuters after the hearing.
(Reporting by Emi Emoto; Writing by Ritsuko Ando; Editing by