OSE Disciplinary Action on Transaction Participant: Nomura Securities
On October 31, Osaka Securities Exchange (“OSE”) imposed disciplinary action on Nomura Securities Co.,Ltd. (“Firm”) pursuant to Rule 42(1)(ix) of the Regulations for Transaction Participants as follows.
Additionally, OSE requested the submission of a business improvement report pursuant to Rule 17 of said Regulations.
The business improvement report shall include:
(1) Reestablishment of business management control system and internal control system, through pursuing the cause of this violation of laws, rules and regulations and introducing preventive measures against recurrence of the violation;
(2) Implementing training, etc. of all officers and employees in order to foster the proper understanding and compliance with the laws, rules and regulations; and
(3) Clarification of the locus of responsibility in light of the disciplinary action.
OSE imposed a fine of JPY 16 million on the Firm.
Reason for the Disciplinary Action
(1) The firm’s condition is acknowledged to be “the inappropriate solicitation including violation of law” as defined in Article 123-1(5) of the Cabinet Order for Enforcement of the Financial Instruments and Exchange Act, based on the Article 40(2) of the Financial Instruments and Exchange Act.
(2) The firm’s act is acknowledged to be “the state that the firm is not deemed to take necessary and appropriate measures to prevent unfair transactions pertaining to corporate-related information” as defined in Article 117-1(14) of the Cabinet Order for Enforcement of the Financial Instruments and Exchange Act, based on the Article 38(7) of the Financial Instruments and Exchange Act.