FSA to Issue Partial Biz Suspension Order to SMBC Nikko Fri.

Politics

Tokyo, Oct. 6 (Jiji Press)--Japan's Financial Services Agency is set to issue a partial business suspension order to SMBC Nikko Securities Inc. on Friday over its involvement in stock price manipulation, it was learned Thursday.

The suspension period is expected to be three months.

The FSA will also issue a business improvement order to demand that the company clarify management responsibility over the incident.

Sumitomo Mitsui Financial Group Inc. <8316>, the parent of SMBC Nikko, is expected to be ordered to enhance its supervisory system.

After receiving the orders, SMBC Nikko is expected to draw up a business improvement plan and take in-house disciplinary measures. The focal point is whether President and CEO Yuichiro Kondo will resign.

[Copyright The Jiji Press, Ltd.]

Jiji Press