FSA Finds No Insider Trading Violation in Demae-Can Case
Overview
The Financial Services Agency (FSA) ruled in an administrative hearing under the Financial Instruments and Exchange Act concerning insider trading by an overseas resident who received information from an employee of a party negotiating a contract with Demae-Can Co., Ltd. The FSA determined that it could not find the facts set out in Article 178(1)(16) of the Act. Following proceedings conducted by three hearing officers, it issued a decision based on a proposed decision finding no violation.
Key points
- The FSA ruled that the facts constituting a violation under Article 178(1)(16) of the Act were not established in the insider trading case.
- This case is the FY2024 (Han) No. 27 administrative hearing concerning a violation of the Financial Instruments and Exchange Act.
- The hearing proceedings were conducted by three hearing officers.
Overview
The case concerns insider trading by an overseas resident who received information from an employee of a party negotiating a contract with Demae-Can Co., Ltd. After receiving a recommendation from the Securities and Exchange Surveillance Commission based on its examination findings to order payment of a surcharge, the FSA initiated hearing proceedings.
Details
On January 24, 2025, the FSA decided to initiate hearing proceedings, which were then conducted by three hearing officers. The officers submitted a proposed decision under Article 185-6 of the Financial Instruments and Exchange Act, and the FSA ruled that no violation had been established. The operative part states that the facts set out in Article 178(1)(16) of the Act cannot be found with respect to the respondent.
The reasons are set out in the summary of the decision. The FSA Adjudication Office, Document Division, is listed as the contact point and accepts calls on weekdays from 10:00 to 17:00. General inquiries about financial administration and related matters are handled by the Financial Services User Consultation Office.