Japan Advisory Hearing Set For Next Week

Oct 10 2012 | 12:25pm ET

Hedge fund Japan Advisory will have a hearing in its fight against the death-sentence imposed by Japanese regulators next week.

Japan's Financial Services Agency scheduled the rare administrative law hearing for next Wednesday. The regulator is not often challenged when it levies punishment against market participants.

The FSA in June revoked Japan Advisory's license and fined the hedge fund in June, accusing it of insider-trading. Japan Advisory's founder, American Brogan, left Japan three days afterwards. But Japan Advisory, which said it had "temporarily closed," quickly announced that it would contest the FSA charges.

Brogan has not been charged with any wrongdoing. But the FSA found that Japan Advisory short-sold about US$6.8 million of Nippon Sheet Glass shares in August 2010, four days before the company announced it would sell new shares to raise capital. Regulators think that a former employee at Daiwa Securities Group—one of the Nippon Sheet Glass offering's lead bookrunners—passed the tip; Daiwa has apologized.

The FSA has said it will present "solid evidence" at the hearing; it took the unprecedented step of issuing a directive to a dozen banks seeking information about possible leaks to the hedge fund.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note