Recommendation of Japan’s Securities and Exchange Surveillance Commission



Tokyo, 25 January 2019 – CLSA Securities Japan Co., Ltd. (“the Company”), advises that the Securities and Exchange Surveillance Committee (“the SESC”) announced today a recommendation to the Financial Services Agency (“the FSA”) to take administrative action against the Company based on the result of a regular inspection of the Company.

The main findings of the SESC relate to deficiencies in the handling of short-sell orders and the performance of trade surveillance.

The Company has co-operated fully with the SESC and takes this recommendation seriously. The Company is deeply committed to the Japanese market and to making ongoing improvements to strengthen its internal control system to safeguard client trades. The Company is deeply sorry for any inconvenience caused to our clients and other concerned parties.