The Financial Services Agency on Friday ordered the Japanese unit of the Switzerland-based UBS financial group to strengthen its internal control of undisclosed corporate data following revelations that the branch provided information to investing clients.
The FSA said UBS Securities Japan Ltd. provided information on undisclosed earnings estimates and other investment data to its clients through e-mail or analyst reports.
UBS also posted such information on its Web site, the FSA said. This practice amounts to a violation of the Securities and Exchange Law, it said.
The latest order followed a recommendation for disciplinary action filed earlier this month by the Securities and Exchange Surveillance Commission.
A UBS Securities Japan official said the company has taken the order seriously and has already begun introducing measures to prevent a reoccurrence