The Japan Securities and Exchange Surveillance Commission has recommended that the Prime Minister and the Commissioner of the Financial Services Agency take administrative action against Takumi Investment Advisors Co., Ltd. after an inspection found serious misconduct in its discretionary investment management and investment advisory businesses. The Commission found the firm kept placing client money into bonds issued by Company A and ultimately invested in B Medical Corporation even as Takumi's chief investment officer was siphoning funds from B Medical, then used JPY 80 million from four clients to meet redemption payments to 24 existing investors instead of investing as represented. In the Commission's view, the conduct amounted to serious breaches of the firm's duty of loyalty to discretionary clients. The inspection covered 17 discretionary clients with JPY 240 million under contract, of which JPY 210 million was placed in Company A bonds and then invested in B Medical Corporation. The Commission said the structure created acute conflicts of interest because Takumi's representative director also ran Company A and B Medical had previously owned more than 99% of Takumi, yet the firm continued the investment even after JPY 205 million was privately diverted from B Medical. Some clients later received reports describing stable bond investments that had not occurred, and the Commission also cited receipt of client money into bank accounts in Takumi's name, late or missing six-month investment reports, and failure to notify authorities after management became aware of the misconduct. Separately, the Commission found the firm advised 39 clients on RL360 Insurance Company Limited's Regular Savings Plan without sufficiently assessing whether the product could lawfully be handled in Japan given RL360 lacked investment management registration. It also found that Takumi's "Money Trouble Consultation Desk" website omitted required regulatory disclosures and used fictitious testimonials. In a related step, the Kanto Finance Bureau issued RL360 a warning letter for conducting financial instruments trading without registration.
Japan Securities and Exchange Surveillance Commission2026-05-15
Japan Securities and Exchange Surveillance Commission recommends administrative action against Takumi Investment Advisors over use of JPY 80 million from four clients for redemptions and false reports
Japan’s Securities and Exchange Surveillance Commission has urged the Prime Minister and Financial Services Agency Commissioner to take administrative action against Takumi Investment Advisors Co., Ltd. for serious misconduct in its discretionary investment management and advisory businesses. Takumi concentrated client funds in bonds issued by a related company and in B Medical Corporation while its chief investment officer siphoned funds, misused JPY 80 million to meet redemptions, misreported investments, and failed to manage conflicts of interest or notify authorities. The Commission also cited improper advice on RL360 Insurance Company Limited’s Regular Savings Plan, misleading website disclosures, and noted that the Kanto Finance Bureau warned RL360 for unregistered financial instruments trading.