SMBC Nikko slapped with partial business suspension order


Tokyo, Oct. 7 (Jiji Press) — Japan’s Financial Services Agency on Friday ordered SMBC Nikko Securities Inc. to partially suspend operations for three months over a stock price manipulation case.

It was the first business suspension order issued for a major brokerage firm in the country since 2006. The agency took this action in light of the seriousness of the matter, which dealt a blow to the market fairness.

The agency also issued a business improvement order to SMBC Nikko following the scandal, which led to the indictment of the company and six executives, including a former executive vice president.

Sumitomo Mitsui Financial Group Inc., the parent company of SMBC Nikko, has received an order requesting the strengthening of its business management system. It is rare for such an injunction to be given to the parent company of a company involved in a similar case.

In addition, the FSA ordered Sumitomo Mitsui Financial and Sumitomo Mitsui Banking Corp. submit documents related to a regulatory violation in which the banking unit shared undisclosed information about corporate clients with the brokerage unit without their consent.

[Copyright The Jiji Press, Ltd.]

Jiji Press

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