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UPDATE 1- Hedge fund Japan Advisory gets hearing for insider trading charge - regulator

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TOKYO, Oct 10 (Reuters) - Japan Advisory will have the opportunity to challenge insider trading charges against the Tokyo-based hedge fund at a hearing on Oct. 17, the country's financial regulator said on its website on Wednesday.

The case against Japan Advisory was one of five announced this year by the securities watchdog, the Securities Exchange and Surveillance Commission (SESC), in a high-profile crackdown on insider trading ahead of public share offerings, a near endemic problem that had gone unchecked in Japan for years.

Japan Advisory was fined and had its license revoked in June after regulators found it had shorted shares in Nippon Sheet Glass Co in August 2010 using leaked information that the glassmaker was planning a share offering.

The hedge fund filed a written objection to the charges, prompting the Financial Services Agency (FSA) to schedule a hearing in accordance with normal procedure in such cases. The hearing will be overseen by the FSA.

Japan Advisory officials could not be reached for comment.

The SESC determined that a former employee of Daiwa Securities Group , which was a lead underwriter on the Nippon Sheet Glass offering, was the source of the leak.

After the case against Japan Advisory was announced, the FSA ordered all major brokers operating in Tokyo to report on their dealings with the hedge fund, believing it had been paying outsized commissions in return for inside tips on deals.

(Reporting by Nathan Layne and Noriyuki Hirata; Editing by Chris Gallagher and Matt Driskill)

((nathan.layne@thomsonreuters.com))

Keywords: JAPAN INSIDER/