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| TITLE | Supreme Court Decision 2018Do4413 Decided October 27, 2022 【Violation of the Financial Investment Services and Capital Markets Act】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 Whether the principle of suitability and the duty to explain that should be complied with when an investment advisory business entity recommends an ordinary investor to make an investment and the principle of adequacy to be observed when selling derivatives, etc. without recommending to make an investment to an ordinary investor under the former Financial Investment Services and Capital Markets Act may apply to a quasi-investment advisory business entity (negative) Whether providing any judgment on investment for “a specific person” may correspond to an investment advisory business (affirmative) and the meaning of “specific” as referred to therein Whether the foregoing legal doctrine is likewise applicable in a case where a person who has sold or rented a stock market automated trading bot, which works in the way of drawing any judgment on investment by picking out stock items that fit into the predetermined value entered through mechanical operations based thereon if a program user enters a predetermined value necessary to draw any judgment on investment, provides a predetermined value to be entered necessary for the operation of the program (affirmative) | |
