Nomura Holdings Inc. resumed brokering services for Japan's public pension fund, the manager of more than $1 trillion in retirement assets, after a three-month ban following allegations of insider trading at the securities firm.
The Government Pension Investment Fund lifted its ban Wednesday after Nomura, Japan's biggest brokerage, submitted a report to regulators detailing how it will improve internal controls, said Kouichi Nojima, a councilor at the fund.
Nomura lost some brokering mandates from Japanese asset managers after a former employee at its mergers and acquisitions department was arrested in April on insider trading charges.
The Tokyo-based company is among the fund's most regularly used brokers for trading securities, including Japanese government bonds and corporate bonds, said Seiichi Kusakabe, the fund's head of in-house trading.
The Financial Services Agency ordered Nomura to improve internal controls and compliance on July 3.
The Tokyo District Public Prosecutor's Office arrested Li Yu, a former Nomura employee, and two other Chinese citizens in April. Li was charged with insider trading, prosecutors said in June.
Nomura fired Li, the brokerage said at a press conference on April 22.
The Pension Fund Association, which manages ¥13.2 trillion in retirement assets, also said in April it would stop placing stock-brokering and bond-trading orders through Nomura until the regulator completed its probe and Nomura demonstrated its compliance with regulations.