From Precy Dumlao, Opalesque Asia Ė Sources from Japanese financial regulator Securities and Exchange Surveillance Commission on Monday said that the missing $2.3bn (183.2bn yen) of client pension funds, which had been managed by hedge and other asset managers, AIJ Investment Advisors Co, may have been transferred to overseas private investment trust funds and financial institutions, some of which were located in the Cayman Islands and Hong Kong, the Japanese newspaper Daily Yomiuri reported.
The revelation came as the Japanese regulator pledged to dig deeper into the disappearance of the funds of the Tokyo-based investment advisory firms and at the same time vowed to establish where the money went and how it disappeared.
Sources close to AIJ allege that the advisory firm used most of the assets to purchase an investment trust in the Cayman Islands, using another Tokyo-based company identified as ITM Securities Co.
AIJ caters to mostly small and mid-sized Japanese firms that entrust their money to the advisory firm.
Reports also showed that inspectors from the Japanese regulator were not able to locate several key accounting documents that provides detailed information of the trustís investment performance in the Caymans.
According to the report, AIJ has provided fake business reports to the Japanese Finance Ministry's Kanto Local Finance Bureau. This was in violation of J......................
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