Alerts and information calling for investors' attention
Japan Securities Dealers Association (JSDA) provides investor alerts and other services to enhance investor protection in the securities market. Investors are recommended to keep in mind the following points.
1. Alerts for unregistered firms and fraudulent acts
Before contacting a financial instrument firm to make a transaction, investors should confirm that the firm is registered with the FSA (Financial Services Agency).
Particular attention should be paid to the recently increasing number of scams using unlisted stocks as well as bonds issued by unlisted companies. It is difficult to convert such stocks and bonds into cash. There have been many reported cases where investors were trapped by such tricky frauds and suffered serious losses.
Please pay attention to the alerts provided by overseas government regulators and self-regulatory organizations as well.
2. Awareness of risks inherent in financial products
It is important for investors to fully understand in advance the characteristics and risks of financial instruments that they invest in, particularly with such complex products as Exchangeable Bonds (EBs) and Contracts for Difference (CFDs).
3. Mediation and dispute resolution services
The Financial Instruments Mediation Assistance Center (FINMAC) handles customers' complaints and mediates disputes between investors and financial instruments firms. In order to provide mediation and dispute resolution services in an industry-wide and more comprehensive manner, JSDA established FINMAC, a specified non-profit organization (NPO) for alternative dispute resolution, in cooperation with related Financial Instruments Firms Associations*. FINMAC started operations in February 2010.
* The following organizations entrust their operations for dispute mediation and resolution to FINMAC:
- Japan Securities Dealers Association
- The Investment Trust Association, Japan
- Japan Securities Investment Advisors Association
- The Financial Futures Association of Japan
- Type II Financial Instruments Firms Association