The Japan Securities and Exchange Surveillance Commission published an inspection-based recommendation to the Prime Minister and the Financial Services Agency Commissioner to take administrative action against Yamabiko Investment Advisors Co., Ltd. The recommendation cites investor-protection concerns linked to involvement in unregistered investment advisory activity and serious failures in governance, compliance and regulatory reporting. The inspection found that Yamabiko was substantively controlled by Akira Yamada and managed in practice alongside another unregistered entity that publishes the quarterly stock-information magazine "All Stock Price Chance" and operated a "Platinum Membership" service charging JPY 200,000 per six months. That service provided recommended stocks, specific price targets and other information affecting stock prices, which the Commission treated as investment advisory activity requiring registration under the Financial Instruments and Exchange Act, yet it was conducted without registration; Yamabiko staff were involved in solicitation and other support. Separately, a Yamabiko salesperson provided unregistered investment advice to 36 individuals and received about JPY 5.5 million, and the firm failed to conduct adequate follow-up or implement effective measures once it became aware of the issue. The Commission also found that Yamabiko concealed from supervisors that the same salesperson, who met statutory registration-refusal criteria, continued to perform investment-decision duties, including through false change notifications, and that steps were taken to prevent inspectors from confirming facts. The recommendation asks the Prime Minister and the FSA to consider supervisory measures, with the conduct assessed as meeting the conditions for a business improvement order and other supervisory dispositions under the Act.

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