Japan's Securities and Exchange Surveillance Commission (SESC) has recommended a ¥530,000 administrative surcharge on a former Toho Zinc employee, saying the person sold company shares while aware of two undisclosed decisions. The recommendation was made on 23 October 2026.
What the SESC says happened
The SESC says the person, an employee of Toho Zinc at the time, knew through their duties that the company's decision-making body had decided to abolish its zinc refining business. The person also knew of a decision to solicit investors to subscribe for newly issued shares. Both counted as material facts under the law, and the SESC says no statutory exemption applied.
On 27 November 2024, the SESC says, the person sold 1,800 Toho Zinc shares for their own account, for a total of ¥1.44mn. That was before both decisions were made public on 18 December 2024.
The SESC concluded that the sale breaches Article 166, paragraph 1 of the Financial Instruments and Exchange Act, the ban on insider trading, and so falls under Article 175, paragraph 1, the surcharge provision.
Where the process stands
The SESC made the recommendation to the prime minister and the commissioner of the Financial Services Agency under Article 20, paragraph 1 of the FSA Establishment Act. It asks them to issue a surcharge payment order. A recommendation is not a final order, and the release does not report a criminal case.
The SESC puts the surcharge at ¥530,000. Its annex sets out the calculation under Articles 175 and 176 of the Act, with the figure rounded down to the nearest ¥10,000. The release says the inquiry drew on information from Japan Exchange Regulation, the exchange group's self-regulatory body.
The release does not name the person, and it does not say whether they have contested the finding.