Press Release
6-2, NIHONBASHI 3-CHOME, CHUO-KU, TOKYO 103-0027 JAPAN
September 16, 2010
Tokai Tokyo Financial Holdings, Inc.
6-2, Nihonbashi 3-chome, Chuo-ku, Tokyo
Re: Administrative Action against Tokai Tokyo Securities Co., Ltd.
by the Financial Services Agency
In furtherance to the Recommendation dated the tenth of September this year and made by the
Securities and Exchange Surveillance Commission (“SESC”) that the Financial Services Agency take
administrative action against Tokai Tokyo Securities Co., Ltd. (“Tokai Tokyo Securities”), a subsidiary
of Tokai Tokyo Financial Holdings, Inc., based on the findings of the inspection of Tokai Tokyo
Securities by SESC, Tokai Tokyo Securities received a Business Improvement Order today from the
Financial Services Agency. (Please refer to the attached announcement issued by Tokai Tokyo
Securities that is entitled “Re: Administrative Action Taken by the Financial Services Agency” for the
details of the Order.)
We profoundly apologize once again to the customers doing business with Tokai Tokyo securities,
our shareholders and other stakeholders for the troubles and the concerns we have caused.
We accept the administrative action taken against Tokai Tokyo Securities this time with utmost
seriousness and we will improve our internal control capability, developing thorough preventive
procedures, based on the results of an examination being performed by an in-house investigation team,
including outside experts such as Mr. Toshio Takano (Attorney-at-Law, Takano Law Office, a Former
Superintendent Public Prosecutor, Nagoya High Public Prosecutors Office).
(end)
For further information, please contact the General Planning Department of Tokai Tokyo Financial Holdings, Inc.
(03-3517-8618).
7-1, MEIEKI 4-CHOME, NAKAMURA-KU, NAGOYA, AICHI
450-6212
JAPAN
September 16, 2010
To the parties concerned
Tokai Tokyo Securities Co., Ltd.
7-1, Meieki 4-chome, Nakamura-ku, Nagoya
Re: Administrative Action Taken by the Financial Services Agency
In furtherance to the Recommendation dated the tenth of September this year and made by the
Securities and Exchange Surveillance Commission (“SESC”) that the Financial Services Agency take
administrative action, based on the findings of the inspection of Tokai Tokyo Securities Co., Ltd.
(“Tokai Tokyo Securities”) by SESC, Tokai Tokyo Securities received a Business Improvement Order
today from the Financial Services Agency as you notice below.
We profoundly apologize once again to our customers and all other parties for the troubles and the
concerns we have caused.
We accept the administrative action taken this time with utmost seriousness and we will improve our
internal control capability, developing thorough preventive procedures, based on the results of an
examination being now performed by an in-house investigation team, including outside experts such as
Mr. Toshio Takano (Attorney-at-Law, Takano Law Office, a Former Superintendent Public Prosecutor,
Nagoya High Public Prosecutors Office).
Further, we will formulate without delay an improvement plan to prevent the recurrence of the
similar irregularity and submit the Business Improvement Report to the Financial Services Agency. We
will disclose the content of the Report together with internal disciplinary actions in the separate
announcement.
Quote“
【The Content of the Business Improvement Order】
(1) Provide adequate account of this foul incident to the affected customers and exercise thorough
care in customer treatment.
(2) On the basis of the comments made by the Securities and Exchange Surveillance Commission,
identify root causes of the incident and grasp where problems exist. Then, complement and
upgrade management supervision and internal control capabilities by accomplishing the following
measures.
① For the prevention of the similar incident thereafter, re-evaluate the existing framework of
management supervision and internal control and to design a drastic safeguard measures to
prevent the recurrence. Such measures must make it possible to uncover inordinate customer
account activity, strengthen day to day mutual warning routines at operating offices and review
ongoing personnel administration practices.
② Reinforce appropriate organizational structure and organize trainings for employees and
officers in order to secure rule-abiding operations.
③ Clarify where and on whom the responsibility lies concerning the incident.
④ Submit the report in writing to the Financial Services Agency by Thursday, October 14, 2010,
elaborating on the progress and the status regarding the above mentioned measures.
”end of quote
For further information, please contact the General Planning Department of Tokai Tokyo Financial Holdings, Inc.
(03-3517-8618).