Nomura to penalise employees

Sunset in Tokyo, Japan

Payback time.

Nomura has said it will penalise two employees who leaked information that asset managers used for insider trading three years ago.

Bloomberg reports that the firm revealed the leaks in a statement Monday after Japan’s securities watchdog recommended fining three asset managers, including a unit of Nippon Life Insurance, for trading on tips from a brokerage in 2010. 

The revelations come more than a year after Nomura was punished for failing to prevent employees from leaking information about share sales it managed. Nomura’s top two executives resigned in July 2012 as the scandal cost the company equity and bond underwriting business.

'Strong punishments will probably be required to avoid any more leaks', said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management in Tokyo. 'Brokerages operating in Japan have been strengthening internal controls for insider trading, so today’s additional findings won’t have a big impact on the local market'.

The Financial Services Agency ordered Nomura to report on the effectiveness of measures that the firm has implemented since last year to prevent further leaks. The report is due in early January, an FSA official said at a news briefing in Tokyo, asking not to be named in accordance with its policy.

To access the complete Bloomberg article hit the link below:

Nomura to Punish Staff for Inside-Information Leaks in 2010

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