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UPDATE 1-Japan regulator recommends fine for Nissay Asset over alleged insider trading
December 2, 2013 / 10:30 AM / 4 years ago

UPDATE 1-Japan regulator recommends fine for Nissay Asset over alleged insider trading

* SESC recommends $4,000 fine for Nippon Life’s asset management arm

* Two other Japanese, one Singapore asset managers also penalised

* Fines for alleged insider trading linked to Inpex, Nippon Sheet Glass share offerings

TOKYO, Dec 2 (Reuters) - Japan’s securities regulator will recommend $89,500 in fines for Nissay Asset Management and three other asset management firms for alleged insider trading involving two public share offerings.

The Securities and Exchange Surveillance Commission has recommended a series of penalties for alleged insider trading since March 2012 following trading activity it deemed suspicious related to a string of offerings conducted in 2010.

The SESC on Monday said it will recommend the Financial Services Agency penalise Nissay, Stats Investment Management and Finno Wave Investments for trading linked to the 2010 offering of energy company Inpex Corp.

Nissay is an asset management arm of Nippon Life Insurance Co, Japan’s top life insurer by assets.

The SESC also said it will recommend penalising Singapore-based MAM Pte Ltd for trading linked to the 2010 offering of Nippon Sheet Glass Co Ltd.

The SESC has recommended fines of 8.04 million yen ($78,500) for MAM, 410,000 yen for Nissay Asset, 540,000 yen for Finno Wave, and 170,000 yen for Stats. The FSA, which imposes the fines, rarely disagrees with the SESC’s recommendations.

Nissay in a statement said it will cooperate with the SESC and continue its own investigation.

A representative at MAM declined to comment on the matter. Representatives at Stats and Finno Wave were not available for immediate comment.

Nomura Securities, a unit of Nomura Holdings Inc, in a statement said the SESC had determined Nissay, Stats and Finno Wave obtained information from Nomura, which underwrote Inpex’s offering.

The country’s top brokerage by revenue said its employees were involved, and reiterated a statement made last year that it will improve internal controls to prevent similar incidents occurring.

A Nomura spokesman said the company will punish two employees involved in the case.

The Japanese unit of JPMorgan Chase & Co, which underwrote Nippon Sheet Glass’ offering, said in a statement that its former employees was involved in the case. The firm said it will strengthen internal controls to prevent a recurrence of such activity.

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