The Financial Services Agency (FSA) has announced that a charge reduction system related to new charges that will apply to investors that violate the large shareholding reporting rule is to come into effect today (December 12, 2008). The new penalties are to be imposed on investors that fail to submit large shareholding reports or include false information in such reports, and the charge reduction system will halve charges imposed on investors under certain conditions.
Please see the following for an outline of the reporting procedure.
Violations subject to the charges that are covered by the reduction system
– Entering false information into an initial disclosure document, etc. by an issuing company.
– Entering false information into an ongoing disclosure document, etc. by an issuing company.- Failure to submit a large shareholdings report or a report making alterations to an existing large shareholdings report.- Giving false information on special securities, etc.- Giving false information on an issuer’s report, etc.- Insider trading related to a company’s acquisition of its own shares.
In the above cases, if a report on such a violation is submitted to the Securities and Exchange Surveillance Commission (SESC) before the authorities begin their investigation or give an order for a report to be submitted, the charge concerned will be halved.
Method of submitting information on such a violation
– Submitting a report directly to the relevant department of the SESC. The submission must be arranged in advance by telephone.
– Sending a report to the SESC by registered mail, etc. Reports sent by ordinary mail will not be accepted.
– Sending it by facsimile to the SESC.
D.C.