Brokers to assess internal controls


The Japan Securities Dealers Association and the Tokyo Stock Exchange said Friday that on Aug. 24 they will urge 50 brokerages that have handled capital hikes in the past three years to examine the adequacy of their internal controls on corporate information.

They will take the step because recently reported insider trading cases resulted from leaks of information on new share public offerings from brokerages, including Nomura Securities Co.

The 50 brokerages include Nomura and 11 other key players that have been instructed by the Financial Services Agency to check their controls on corporate information.

The JSDA and TSE hope the voluntary checks by the 50 brokers will help restore public confidence in the industry.