The Financial Services Agency took administrative action Thursday against the Tokyo branch of Barclays Capital Japan Ltd. over failure to follow proper procedures in conducting securities and nonsecurities transactions.
The agency said the company carried out six kinds of securities and nonsecurities transactions without obtaining authorization, thereby violating both the Law on Foreign Securities Firms and the Securities & Exchange Law, the agency said.
The firm engaged, for example, in the unauthorized intermediation of over-the-counter derivatives contracts, handling 113 cases before it obtained the necessary authorization on Nov. 29 1999, according to the agency.
Under the administrative action, the firm will suspend its operations in this sector for five days, beginning July 1, and will be restricted from applying for nonsecurities trade for two months.
The agency also issued a business-improvement order, telling the firm to strengthen its internal management system and take preventive measures regarding misconduct.