Regarding the market manipulation case of SMBC Nikko Securities, the Securities and Exchange Surveillance Commission recognized that there were deficiencies in the examination of trading and the management system of business, and recommended that the Financial Services Agency take administrative action.
In response to this, the Financial Services Agency is considering issuing a business improvement order to order the company to suspend the problematic business for a certain period of time and to strengthen the internal control system.
SMBC Nikko Securities has been indicted for market manipulation in violation of the Financial Instruments and Exchange Act, including six executives and a corporation, for conducting illegal transactions such as buying a large amount of stocks to maintain the stock price of a specific stock.
As a result of the inspection by the Securities and Exchange Surveillance Commission, it was found that there were deficiencies in the examination system for monitoring trading trends with the system and the operational management system. was lacking,” he pointed out.
In addition to the indicted case, SMBC Nikko Securities has violated the law and shared non-disclosed information regarding corporate acquisitions with Sumitomo Mitsui Banking Corporation, which is in the same group, on multiple occasions. It is inappropriate because it prioritizes its own interests."
On the 28th, the Supervisory Committee recommended that the Financial Services Agency take administrative action against SMBC Nikko Securities.
In response to this, the Financial Services Agency is considering ordering companies to suspend operations for a certain period of time, as well as issuing business improvement orders to strengthen internal control systems.
Comments from SMBC Nikko Securities and parent company
"SMBC Nikko Securities" and its parent company, "Sumitomo Mitsui Financial Group," jointly issued a statement, "We sincerely apologize for the inconvenience and concern we have caused to our customers and other related parties. We take this recommendation very seriously, and will continue to make company-wide efforts to improve and prevent recurrence, and work to regain the trust of our customers and other stakeholders."