Japan’s Markets Watchdog Likely To Recommend $22 Million Fine Against Nissan
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Japan’s markets watchdog will likely recommend soon that the financial regulator fine Nissan Motor Co Ltd about 2.4 billion yen ($22 million) over false reporting on its financial statement, public broadcaster NHK reported on Sunday.
Nissan’s former Chairman Carlos Ghosn was arrested in Tokyo in November last year over allegations of financial misconduct, including understating his salary by around 9.1 billion yen ($84.71 million) over a period of nearly a decade and temporarily transferring personal financial losses to the books of Nissan, Japan’s No. 2 automaker.
Reuters reported in June that Nissan would be fined up to 4 billion yen and it may receive a reduced fine of around 2.4 billion yen if the automaker filed documentation to the Securities and Exchange Surveillance Commission (SESC) before the formal investigation begins, citing a source.
The fine would cover a four-year period through March 2018, the source previously told Reuters.
Questions & Answers
Q.What specific financial misconduct allegations led to Carlos Ghosn's arrest?
What specific financial misconduct allegations led to Carlos Ghosn's arrest?
Carlos Ghosn was arrested over allegations of understating his salary by about 9.1 billion yen over nearly a decade. He was also accused of temporarily transferring personal financial losses to Nissan's books.
Q.Which regulatory body will recommend the fine against Nissan?
Which regulatory body will recommend the fine against Nissan?
Japan’s markets watchdog will likely recommend the fine. This recommendation will be made to the financial regulator, as reported by public broadcaster NHK.
Q.How long a period does the potential fine against Nissan cover?
How long a period does the potential fine against Nissan cover?
The potential fine against Nissan covers a four-year period. This period extends through to March 2018, according to a source previously cited by Reuters.
Q.Why might Nissan receive a reduced fine of 2.4 billion yen?
Why might Nissan receive a reduced fine of 2.4 billion yen?
Nissan may receive a reduced fine if it filed documentation to the Securities and Exchange Surveillance Commission (SESC) before the formal investigation began. This potential reduction was previously reported by Reuters.