The incident prompted the Tokyo Stock Exchange to transfer Nikko Cordial stock to its monitoring post to confirm whether the major brokerage company has met delisting standards.

The recommendation made by the Securities and Exchange Surveillance Commission to the Financial Services Agency followed Nikko Cordial's announcement that it will correct the financial statement for the year to March 2005.

The biggest fine imposed so far by the FSA is ¥131.33 million for TTG Co. for false financial statements. If the FSA takes harsh disciplinary measures based on the SESC recommendation, it might result in a reshuffle of top Nikko Cordial executives.

The Japan Times Weekly: Dec. 23, 2006
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