The Securities and Exchange Surveillance Commission (SESC) petitioned the Tokyo District Court on 10 November 2026 to order 4CAPITAL MANAGEMENT, two Tokyo insurance-sales companies and their three heads to stop alleged unregistered securities business. The petition rests on Article 192(1) of the Financial Instruments and Exchange Act, which lets a court halt violations when there is urgent need and the order serves the public interest and investor protection.
Two schemes, different respondents
All three companies are described as insurance-sales businesses, none registered to conduct financial instruments business. The SESC asks the court to bar 4CAPITAL MANAGEMENT and its representative from handling offers of foreign collective investment scheme interests and from brokering discretionary investment contracts. It seeks the same orders against the other two companies and their heads, plus a bar on handling private placements of corporate bonds.
Offshore products
The products are the "Evolution" and "S&P500 Index" schemes, which the SESC says are put together by insurers in the ITA group, topped by ITA International Holdings LLC. Sales agents, 107 of them registered under 4CAPITAL MANAGEMENT, allegedly pitched them mainly to existing customers and earned commissions. Clients were also told they could hand portfolio decisions to GOO PROPERTY SINGAPORE PTE. LTD. The SESC says the respondents had at least 2,141 investors in cumulative terms put in about ¥4.9bn between February 2021 and February 2026. Earlier Tokyo Brief coverage
Bonds at 12%
Separately, the SESC says agents led by one of the Tokyo companies sold private bonds for a Tokyo issuer that had bought a hair-removal salon business. The bonds had a one-year term, were set to pay 12% annual interest on the amount contributed and were issued in units of ¥2mn to ¥10.5mn. A 12-agent network allegedly sold them from around October 2024 to around January 2025 to at least 402 investors in cumulative terms, who put in about ¥2.5bn. About ¥800mn of that, from 132 investors in cumulative terms, relates to the other Tokyo company.
The SESC stresses that the petition does not seek to block refunds to customers, and says the products' performance is not guaranteed.