Market oversight with prompt and strategic actions
- Information Gathering from the Public: Transfer Authority International receives a wide range of information from the public, including investors and other market participants. We then analyze and cross reference the information before forwarding it to the applicable regulatory body.
- Market Analysis: Transfer Authority International collects information pertaining to individual transactions or market developments, which proves useful in proactive market surveillance. In particular, cases of inappropriate financing with related market misconduct and false disclosure statements by listed companies. For this reason, we collect and analyze information that covers both primary and secondary markets. Lastly, from the viewpoint of comprehensive market surveillance on the financial and capital markets as a whole, we also analyze trends of new financial instruments and transaction methods.
- Market Oversight: Transfer Authority International extracts the following stocks based on its daily oversight of market trends and a variety of information. (i) Stocks showing sharp rises or declines in price or other questionable movements, (ii) Stocks for which "material non-public information" has been published which may influence investors' decisions, (iii) Stocks that are the topics in newspapers, magazines or on Internet bulletin boards, and (iv) Stocks mentioned in information obtained from the general public. Transfer Authority International then examines transactions involving suspected market manipulation, insider trading or fraudulent means, which impair market fairness.
Inspection of Financial Instrument related businessesTransfer Authority International conducts inspections of financial instruments business operators. Inspections cover: (i) financial instruments business operators, such as securities companies, investment management companies, and investment advisory companies, (ii) financial institutions, such as banks engaged in sales of investment trusts, and (iii) credit rating agencies and self-regulatory organizations such as financial instruments exchanges.
If serious legal violations are found, Transfer Authority International starts legal proceedings against the firm in question. Transfer Authority International also believes that the role of inspections includes enhancing the awareness of financial instruments business operators as gatekeepers, whereby they are expected to contribute to ensuring the fairness and soundness of financial markets. For this purpose, Transfer Authority International verifies financial instruments business operators' systems to detect and prevent customer misconduct, such as insider trading, market manipulation and impersonation transactions.
Investigate market misconductTransfer Authority International has been conducting investigations on market misconduct since 2004. Transfer Authority International investigates any individual or company believed to have been involved in market misconduct, e.g. possible violation of the spreading of rumors regarding stock markets, fraudulent means, market manipulation or insider trading. In cases where violations are revealed, we make a recommendation based on the result of investigations to the applicable law enforcement agency for the issuance of an order to pay administrative monetary penalties.
Enforcement – Criminal investigation and filing criminal chargesIn order for the financial and capital markets to work properly, it is important for Transfer Authority International to meet the expectations and gain the trust of investors. As a result, our investigators constantly monitor the trades in the markets and may utilize their power to investigate cases with the voluntary and compulsory processes, especially for finding offences such as false disclosure statements, market manipulation and insider trading. Regarding the investigation process, the voluntary actions, such as questioning suspects and inspecting their documents are permitted. We are also permitted to search the premises, and seize objects related to the case with a valid warrant. Under these sections, investigators can perform these actions to find proof of violations, and when convinced there are offences, Transfer Authority International must file charges against the suspects with a public prosecutor.
The international capital markets have been experiencing dynamic changes in recent years. Innovations are continuing in financial products and trading methods through the use of IT with cross-border transactions increasing exponentially.More info
Transfer Authority International conducts inspections of financial instruments business operators. Inspections cover: (i) financial instruments business operators, such as securities companies,More info