Japan Nomura to clean its 'wounds' and uphold higher ethical standards after the country’s biggest brokerage leaked information used for insider trading, the Deputy Banking Minister said.
Bloomberg reports that Financial Services Senior Vice Minister Ikko Nakatsuka said in an interview yesterday: 'I urge Nomura’s executives and employees to reevaluate their professional ethics and identify the problems with their internal controls and business practices. I want Nomura to drain the pus from its wounds'.
The Securities and Exchange Surveillance Commission is continuing to inspect Nomura after finding that its employees gave tips to traders on share sales it managed. As part of its efforts to crack down on insider trading, the regulator this month asked Nomura, Goldman Sachs Group Inc. (GS) and 10 other brokerages to review how they handle confidential information.
'If any brokerages misrepresent facts or conduct insufficient internal inspections, they should fully understand they will face reputational risks', said Nakatsuka, 47, a lawmaker from the ruling Democratic Party of Japan. 'We may conduct further probes and impose penalties in that case'.
Financial Services Minister Tadahiro Matsushita asked the 12 firms to submit reports by August 3rd.
Hit the link below to access the complete Bloomberg article:
Nomura Must Clean ‘Wounds’ on Insider Probe, Vice Minister Says
image: © Neil T
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