Statement on Recommendation Issued by Japan's Securities and Exchange Surveillance Commission
Tokyo, June 8, 2012 – Japan's Securities and Exchange Surveillance Commission today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency order an administrative monetary penalty against First New York Securities LLC. This is based on a finding that the firm had engaged in insider trading in breach of Japan's Financial Instruments and Exchange Act in connection with an equity offering by Tokyo Electric Power Company in September 2010.
Separately, a Third Party Committee established by Sumitomo Mitsui Trust Holdings, Inc. today released a report on insider trading conducted by the former Chuo Mitsui Asset Trust and Banking Company, Limited.
Nomura expresses its regret concerning the findings that non-public information was received from Nomura employees in such cases and we sincerely apologize for the trouble this has caused.
We continue to cooperate fully in the ongoing inspection by the Commission, and in light of the Commission's findings of involvement by Nomura employees, an extensive internal investigation by a group of outside attorneys is also being conducted. We expect the findings of the internal investigation to be announced by the end of June.
Nomura takes this matter seriously and will implement improvement measures and disciplinary action in accordance with the results of the internal investigation and the Commission's inspection.
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs over 27,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, asset management, and wholesale (fixed income, equities, and investment banking). For further information about Nomura, please visit www.nomura.com.
