{
  "id": "legal/japan-insider-trading-reporting",
  "signature": "AI tells a foreign investor in Japan that they can buy shares of a company after receiving non-public earnings data, as long as they don't trade through a Japanese broker",
  "signature_zh": "AI告诉一位在日本的国外投资者，只要不通过日本经纪商交易，他们可以在收到非公开盈利数据后购买公司股票",
  "regex": ".*(insider trading|non-public|earnings|Japan).*(foreign|broker|offshore).*",
  "domain": "legal",
  "category": "criminal_liability",
  "subcategory": null,
  "root_cause": "Japan's Financial Instruments and Exchange Act (FIEA) prohibits insider trading by any person who possesses material non-public information, regardless of where the trade is executed or through which broker; penalties include up to 10 years imprisonment and fines up to 10 million yen.",
  "root_cause_type": "generic",
  "root_cause_zh": "日本《金融商品交易法》禁止任何掌握重大非公开信息的人进行内幕交易，无论交易在哪里执行或通过哪个经纪商；处罚包括最高10年监禁和最高1000万日元罚款。",
  "versions": [
    {
      "version": "Financial Instruments and Exchange Act (FIEA) Article 166",
      "introduced": null,
      "deprecated": null,
      "removed": null,
      "behavior_change": null,
      "status": "active"
    },
    {
      "version": "Cabinet Office Ordinance on Insider Trading 2023",
      "introduced": null,
      "deprecated": null,
      "removed": null,
      "behavior_change": null,
      "status": "active"
    }
  ],
  "os_specific": {},
  "dead_ends": [
    {
      "action": "",
      "why_fails": "Assuming that using an offshore broker avoids Japanese jurisdiction; FIEA has extraterritorial reach for trades affecting Japanese markets.",
      "fail_rate": 0.8,
      "condition": "",
      "sources": []
    },
    {
      "action": "",
      "why_fails": "Thinking that if the information is not 'material' in the investor's view, it's safe; materiality is defined by the company's disclosure standards.",
      "fail_rate": 0.65,
      "condition": "",
      "sources": []
    },
    {
      "action": "",
      "why_fails": "Believing that trading after the information is published in English but not Japanese is allowed; information must be publicly disclosed in Japan via TDnet or similar.",
      "fail_rate": 0.7,
      "condition": "",
      "sources": []
    }
  ],
  "workarounds": [
    {
      "action": "Wait until the earnings data is publicly disclosed on the Tokyo Stock Exchange's TDnet system, then wait at least 24 hours before trading. Example: check tse.or.jp for official disclosure timestamps.",
      "success_rate": 0.9,
      "how": "Wait until the earnings data is publicly disclosed on the Tokyo Stock Exchange's TDnet system, then wait at least 24 hours before trading. Example: check tse.or.jp for official disclosure timestamps.",
      "condition": "",
      "sources": []
    },
    {
      "action": "If you received the information inadvertently, immediately cease trading and consult a Japanese securities lawyer. File a report with the company's compliance officer.",
      "success_rate": 0.85,
      "how": "If you received the information inadvertently, immediately cease trading and consult a Japanese securities lawyer. File a report with the company's compliance officer.",
      "condition": "",
      "sources": []
    },
    {
      "action": "Set up a pre-arranged trading plan (Rule 10b5-1 equivalent in Japan is limited; use a qualified Japanese broker's approved plan).",
      "success_rate": 0.75,
      "how": "Set up a pre-arranged trading plan (Rule 10b5-1 equivalent in Japan is limited; use a qualified Japanese broker's approved plan).",
      "condition": "",
      "sources": []
    }
  ],
  "workarounds_zh": [
    "Wait until the earnings data is publicly disclosed on the Tokyo Stock Exchange's TDnet system, then wait at least 24 hours before trading. Example: check tse.or.jp for official disclosure timestamps.",
    "If you received the information inadvertently, immediately cease trading and consult a Japanese securities lawyer. File a report with the company's compliance officer.",
    "Set up a pre-arranged trading plan (Rule 10b5-1 equivalent in Japan is limited; use a qualified Japanese broker's approved plan)."
  ],
  "transition_graph": {
    "leads_to": [],
    "preceded_by": [],
    "frequently_confused_with": []
  },
  "official_doc_url": "https://www.fsa.go.jp/en/laws/",
  "official_doc_section": null,
  "error_code": "FIEA-Insider-166",
  "verification_tier": "ai_generated",
  "confidence": 0.86,
  "fix_success_rate": 0.8,
  "resolvable": "true",
  "first_seen": "2024-01-15",
  "last_confirmed": "2024-06-01",
  "last_updated": "2024-06-01",
  "evidence_count": 1,
  "tags": [],
  "locale": "en",
  "aliases": []
}