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.

Automotive

Japan’s Markets Watchdog Likely To Recommend $22 Million Fine Against Nissan

By Wei ZhangJapan

1 min readUpdated Jun 4, 2025Dec 16, 201911:01 PM

In this article (5)

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.

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What this means

Nissan's impending 2.4 billion yen fine represents a significant blow to its brand integrity, likely damaging consumer trust and investor confidence. While the company's regional rivals, such as Mitsubishi Estate or Hilton, focus on strategic expansion and development across Japan, Nissan grapples with the fallout of alleged long-term financial misconduct. This regulatory action pressures the automaker to demonstrate robust governance reforms decisively. Compared to proactive market entries and expansions seen from other Asian brands, Nissan's focus must now shift internally. The primary risk lies in prolonged reputational damage impacting future sales and partnerships. Monitor the formal recommendation from the Securities and Exchange Surveillance Commission.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

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.

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.

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.

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