Japan’s FSA Issues Business Improvement Order to Nomura After Information Leak

Published On May 10, 2019

Japan’s financial regulator, the Financial Services Agency (FSA), has issued Nomura Holdings Inc with a business improvement order after its employees were found to have revealed sensitive stock-market information to clients.

In a statement issued by the FSA, it outlined that Nomura had failed to put in place appropriate systems for information control. Moreover, its employees lacked awareness about their compliance obligations.

Nomura’s own internal investigation found that a researcher at an affiliate had shared information on potential changes to the composition of the Tokyo Stock Exchange with a strategist at the brokerage. This information was then circulated within the firm and to investors.

Commenting on the findings, the FSA said that Nomura staff had “prioritized improving their own reputations by showing that they have valuable sources of information.

In response to the order, Nomura commented that it will “further strengthen [its] compliance and internal controls frameworks.”