Japanese securities firms face an inspection by the industry association into their compliance with insider rules after Nomura Holdings Inc. discovered it breached laws governing the handling of nonpublic information.
The Japan Securities Dealers Association's new chief pledged to examine how firms train and educate branch managers — who have dual roles as investment bankers and retail brokerage chiefs — to prevent sharing of confidential corporate information with sales staff.
JSDA Chief Executive Officer Shigeharu Suzuki said the idea of an audit was prompted by a Bloomberg News report last month that Nomura found a former branch manager mishandled private information that a company it took public was considering a stock split. The brokerage later informed the Financial Services Agency of the violation and outlined steps to improve how it handles corporate details.