The Securities and Exchange Surveillance Commission (“SESC”) has today made a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency for the issue of an Administrative Monetary Penalty Payment Order against a former employee of a subsidiary of Toshiba Corporation (“the Company”), after finding that the former employee violated the Financial Instruments and Exchange Law (insider trading).
The former employee engaged in insider trading in April 2022, in the shares of one of the Company’s business partners, a publicly traded company.
In parallel with the investigation by the authorities, the Company and its subsidiary independently confirmed the facts and took disciplinary action, the dismissal of the employee. The Company truly regrets this incident and apologizes deeply.
The Company and its subsidiary have in place systems for managing confidential information, and internal rules regarding stock trading that prohibit stock trading based on insider information. The Company and its Group ensure that employees are aware of the prohibition against insider trading through in-house training and other means.
An internal investigation of this incident did not find any particular deficiencies in information management systems; nonetheless both the Company and its subsidiary take this incident very seriously. Moving forward, the Company will take company-wide measures to ensure that all employees are fully aware of the importance of legal compliance, including the prevention of insider trading.
(Reference) The recommendation by the Securities and Exchange Surveillance Commission (Japanese Only):
(*) The former employee is “課徴金納付命令対象者（１）” in the SESC’s press release.