Japan: Cold Calling

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From the Financial Services Agency- Japan

What is ''Cold Calling''
''Cold Calling'' refers to the practice where a person makes unsolicited calls to a potential investor seeking to sell them securities during the call or in the future.

Investors Alert by the IOSCO
The Technical Committee of the International Organization of Securities Commissions (IOSCO), whose members consist of securities regulators which regulate some of the large developed and internationalized securities markets, issued in February 2002 Investors Alert on cold calling. It said the following:

Generally speaking, a person requires some form of regulatory authorization or approval in the country in which the investor resides in order to engage in a securities business. Cold calling organizations may not have those approvals and may be involved in illegal investment schemes in which investor lose money.

Therefore, investors should not make an investment solely on the basis of a cold call. At a minimum, before committing any money, investor should check the professional register of licensed securities dealers, investment advisers and their representatives in the jurisdiction of their domicile and the jurisdiction where the cold caller claims to operate. Investors also should be extremely sceptical if a cold caller promises spectacular returns or ''guaranteed'' profits. If the deal sounds too good to be true, it probably is.

The IOSCO Asian Pacific Regional Committee (IOSCO APRC) issued a press release in February 2002 which reiterated their commitment to greater regional co-operation in the regulation of the capital markets. The press release stated the following:

Particular focus was given to the enhancement of co-operation, mutual assistance and information-sharing in the enforcement of illegal securities activities.

Many countries in the region have also issued investors alerts to prevent the investing public from falling prey to these scams. In addition, the meeting agreed, to the extent permissible under local laws, to publish the names of unlicensed operators operating within their jurisdictions.

List of known unlicensed overseas cold callers
In line with the above-mentioned IOSCO statements and based on the official information from the overseas securities regulators and governments, the following is the non-exhaustive list of known unlicensed or unregistered cold callers. They are neither registered as securities companies, approved as investment trust companies, nor registered as investment advisors in Japan as of October 11, 2006.

Profidex
Levels 9-11, AIG Building, 1-1-3 Marunouchi, Chiyoda-Ku, Tokyo 100-0005
Tel: +81-3-5288-5296
Fax: +81-3-4496-4835

Kaikatsu Group Limited
Tokyo Ginko Kyokai Building 1-3-1 Marunouchi, Chiyoda-Ku, Tokyo, 100-0005 Japan
Tel: +81-3-4496-5255
Fax: +81-3-4496-5256 and +81-3-4496-5257

Dragon Securities
502 Hotta-kata, 3-6-10 Hirusaido, Kagurazaka, Shinjyuku-ku, Tokyo, 162-0825 Japan
Tel: +81-3-4496-4800
Fax: +81-3-4496-4801

Carnegie Advisors Ltd.
807-31, Lions Plaza Ebisu, 3-25-3 Higashi, Shibuya-ku, Tokyo 150-0011, Japan
Tel: +81-3-3668-1362, Fax: +81-3-3668-1363

De Verre Lloyd & Co.,Ltd.
Tel: +81-3-5456-5369

Dreyfus Securities Ltd.
Tel: +81-3-5404-3826

Drexel Asset Management
Tel: +81-3-5325-3043 or +81-3-5219-1509

Kearns Investments Inc.
Tel: +81-3-5288-5414

Kensington International Group Ltd.
Tel: +81-3-5326-3125
Momentum Consultants Limited
807-31, Lions Plaza Ebisu, 3-25-3 Higashi, Shibuya-ku,
Tokyo 150-0011, Japan
Tel: +81-3-3668-1362, Fax: +81-3-3668-1363

Heritage Mergers and Acquisition
Kamiya-cho MT Bldg. 4-3-20 Toranomon, Minato-Ku, Tokyo, Japan 105-0001
TEL: +813-5404-3560
FAX: +813-4496-4930

Barlow & Ramsey
Sanno Park Tower Bldg. 2-11-1 Nagata-Cho, Chiyoda-ku, Tokyo, Japan 100-6113
TEL: +813-4496-5211
FAX: +813-4496-5212

Norbert Associates
9F AIG Bldg. 1-1-3 Marunouchi, Chiyoda-Ku, Tokyo, Japan 100-0005
TEL: +813-4496-4850
FAX: +813-4496-4851

Nishimura Mergers and Acquisition
2F Tokyo World Trade Center Bldg. 1-7-8 Kaigan, Minato-Ku, Tokyo, Japan 105-0022
TEL: +813-5456-5059

Cahill & Audleman
502 Hillside Kagurazaka, 3-6-10 Kagurazaka, Shinjyuku-Ku, Tokyo, Japan 162-0825
TEL: +813-4496-4790
FAX: +813-4496-4791

Select Capital Management
9F AIG Bldg. 2-18-6 Nihonbashi, Chiyoda-Ku, Tokyo, Japan 103-0027

Capital Plus Group
14F Kamiya-cho MT Bldg. 4-3-20 Toranomon, Minato-Ku, Tokyo, Japan 105-0001
TEL: +813-4580-2121
FAX: +813-4496-4904

Premium Alliance Group
28F Shinagawa Intercity A, 2-15-1, Konan, Minato-Ku, Tokyo, Japan 108-6208
TEL: +813-5325-3223
FAX: +813-5325-3131

Link Merger & Acquisitions
21 Ichiban-Cho, Chiyoda-Ku, Tokyo, Japan 102-0082
TEL: +813-4580-2144
FAX: +813-4496-4333

Sukumo Group
Tel : +81-3-5219-1528

Tech-Link International Limited
Warren and Baker
Tel : +81-3-5219-1531

The Stockton Group
502 Ohashi-Building,
1-16, Kanda-Sakumacho, Chiyoda-ku,
Tokyo 101-0025, Japan
Tel: +81-3-4496-5110
Fax: +81-3-4496-5111 , +81-3-4496-5112

Charles Fleming Co.
Sanno Park Tower Bldg.,2-11-1 Nagata-Cho, Chiyoda-Ku,
Tokyo 100-6172, Japan
Tel: +81-3-5456-5026
Fax: +81-3-4496-4464

Greenfield Consulting
2-4-203 Ogikubo, Suginami-Ku, Tokyo, Japan
Tel : +813-5288-5444
Fax : +813-4496-4922