Financial Services Agency

TogoAdministrative actions against joint stock companies August 9, 2019 Kanto Local Finance Bureau 1. Togo (Headquarters: Minato-ku, Tokyo, corporate number 3011101037679) (hereinafter referred to as "our company") (hereinafter referred to as "our company") was found to have violated the following laws and regulations. Requested recommendations were made. (As of August 2, 2019) Act of compensating for losses to customers Sakura Co., Ltd., a director of the Company who oversees all operations as a substantial manager and whose purpose is commodity derivative transactions, etc. Yasuhiro Hayashi, who was the substantial manager of Invest (Osaka City, Osaka Prefecture, corporate number 4130001048955) and was in charge of overall operations. Yusuke Nomizu, Masaya Uemura, who was in charge of our accounting business as an advisor to our company, and others, from the end of July 2016 to the end of January 2019, provided eight customers with exchange exchange evidence. In order to compensate for part of the losses incurred in gold trading, he provided himself or a third party with profits equivalent to a total of approximately 69.7 million yen. (Case 1) From the end of July 2016 to the middle of December 2018, we offered Sakura Invest Co., Ltd. to four customers who were engaged in exchange margin trading at our company. provided a profit equivalent to a total of approximately 7.6 million yen by himself or the company by disguising himself as if he had performed a product difference settlement transaction related to the order. (Case 2) From around mid-October 2017 to late January 2019, we entered into a loss compensation contract with four customers who were engaged in exchange margin trading at our company. In addition, based on the contract, each customer was provided with a total of approximately 62.1 million yen in cash. In the above act, the Company's directors, who are responsible for the core of management, and the representative director and general manager of the administration department conspired to compensate for losses for a large number of customers over a long period of time under systematic instructions and judgments. This is extremely malicious, and the background to this is the lack of awareness of the management team themselves, who should thoroughly comply with laws and regulations. Our company lacks an internal control system to prevent, detect, and correct serious and obvious violations of laws and regulations, as well as a business management system to properly execute company business, such as blindly overlooking the above acts. It was recognized that The act of Case 1 above is deemed to fall under Article 39, Paragraph 1, Item 3 of the Financial Instruments and Exchange Act, and the act of Case 2 above is deemed to fall under Item 2 and Item 3 of the same paragraph. 2. Based on the above, today, we are requesting the following (1) based on the provisions of Article 52, Paragraph 1 of the Financial Instruments and Exchange Act and the following (2) based on the provisions of Article 51 of the same Act: Administrative action was taken. (1) Cancellation of registration Registration of Kanto Local Finance Bureau Director (Kinsho) No. 272 is cancelled. (2) Business Improvement Order 1) Fully explain the contents of this administrative action to the customer and take appropriate measures according to the customer's request. 2) Based on the customer's intention, formulate a policy regarding the transfer or termination of the customer's transaction and the return of the customer's assets, and implement it without fail. 3) Do not unfairly spend company assets. 4) Report the implementation status of the above 1) to 3) in writing by Friday, September 6, 2019, and then report in writing at any time until all of them are completed. .