Credit Suisse will stop publishing research that previews companies’ financial results in Japan after the securities watchdog found that its local securities unit leaked information about a company’s earnings.
Bloomberg News reports that the firm won’t allow its analysts to visit companies to gather information before they report earnings, Tokyo-based spokeswoman Haruko Fukushima said by phone on Monday, without giving a reason. It’s also not planning to hold a conference for investors this month, an event that usually takes place twice a year in April and October before the results season, Fukushima said.
The Securities and Exchange Surveillance Commission on Friday recommended that the Financial Services Agency penalize Credit Suisse’s Japanese brokerage unit after finding that one of its analysts leaked non-public information on a company’s earnings forecast. The analyst gave the information last year to a colleague in the sales division, plus at least one customer, the SESC said. The sales employee then solicited at least 33 customers to buy shares in the unidentified company.
Japan’s financial regulator is grappling with how to treat corporate information before it’s published to ensure all investors have fair access to it.
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