SMBC Nikko Slapped with Partial Biz 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 the action in light of the seriousness of the case, which dealt a blow to market fairness.
The agency also issued a business improvement order to SMBC Nikko over the scandal, which led to the indictment of the company and six executives including a former executive vice president.
Sumitomo Mitsui Financial Group Inc. <8316>, the parent of SMBC Nikko, received an order calling for the strengthening of its business management system. It is rare for such an order to be given to the parent of a firm involved in a similar case.
Furthermore, the FSA ordered Sumitomo Mitsui Financial and Sumitomo Mitsui Banking Corp. to submit materials related to a regulatory violation in which the banking unit shared with the brokerage unit undisclosed information about corporate clients without their consent.
[Copyright The Jiji Press, Ltd.]