Monex Group Inc. was sued in Japan over the sale of Credit Suisse’s riskiest debt, highlighting tensions created across the world by Switzerland’s decision to write down the bonds during the state-backed rescue of the lender.
(Bloomberg) — Monex Group Inc. was sued in Japan over the sale of Credit Suisse’s riskiest debt, highlighting tensions created across the world by Switzerland’s decision to write down the bonds during the state-backed rescue of the lender.
Kojimachi Oodori Sogo Law Office filed a suit Thursday against the online brokerage with the Tokyo District Court on behalf of an individual investor seeking about 22.5 million yen ($161,000) in compensation.
The 62-year-old plaintiff is accusing Monex of having sold him the securities via its business partner Wealth Guardian, without providing any explanation on special viability risks related to the debt, according to a copy of the complaint seen by Bloomberg News.
“It is very irresponsible to create such flawed materials and conduct sales through independent financial advisers,” said Akiyoshi Motosugi, attorney at law at Kojimachi Oodori Sogo Law Office. A spokesperson for Tokyo-based Monex couldn’t immediately comment when reached by telephone.
Switzerland’s move in March to write down the bonds of Credit Suisse shocked investors in Japan, who bought around 140 billion yen worth of the debt. Clients of Mitsubishi UFJ Financial Group Inc.’s securities venture with Morgan Stanley took the lion’s share of the hit. The debacle in a country that’s trying to push its citizens to invest more has prompted Japanese regulators to look into whether firms properly explained the risks before selling the bonds.
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