Sumitomo Mitsui securities unit suspended from block trading for 3 months
SMBC Nikko employees were suspected of conducting illegal stabilization transactions.
Sumitomo Mitsui Financial Group (SMFC) and its securities unit SMBC Nikko have been hit with administrative actions by Japan’s Financial Services Agency (FSA) overviolations made against the Financial Instruments and Exchange Act.
SMBC Nikko’s operations were suspended for 3 months beginning 7 October until 6 January 2023 after the Securities and Exchange Surveillance Commissions (SESC) found that the company has conducted market manipulation and breached the firewall regulation.
SMFC was also issued administrative actions by the FSA pursuant to Article 32-2, Paragraph 2 of the Financial Instruments and Exchange Act.
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Each are required to submit an improvement plan to FSA by 7 November, with a focus on enhancing business management governance and internal control.
“SMFG and SMBC Nikko take the administrative actions very seriously and will continue to take all the necessary measures to make improvements and prevent recurrence on a company-wide basis to restore the trust of customers and other parties concerned,” SMFC said in a press statement.
In March and April 2022, SMBC Nikko Securities executives and employees, including Deputy President Toshihiro Sato, were arrested by Tokyo prosecutors on suspicion of conducting illegal stabilization transactions.