The Administrative Action against SMBC Nikko Securities Inc. by the Financial Services Agency of Japan(1/1)
April 20, 2012
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
The Administrative Action against SMBC Nikko Securities Inc.
Financial Services Agency of
Tokyo, April 20, 2012 --- On April 13, 2012, the Securities and Exchange Surveillance Commission (“SESC”) recommended that the Prime Minister and the Commissioner of the Financial Services Agency of Japan (“FSA”) issue an administrative action against SMBC Nikko Securities Inc. (“SMBC Nikko” hereunder, President & CEO: Eiji Watanabe), a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation (“SMBC” hereunder, President & CEO: Takeshi Kunibe). Today, SMBC Nikko was issued a Business Improvement Order by the FSA, based on the FSA’s findings of deficient internal control systems with respect to undisclosed corporate information and inappropriate solicitation activities by SMBC Nikko.
We would like to apologize with our deepest sincerity for the inconvenience and concern this has caused to all of our customers and stakeholders.
We will respond to the administrative action against SMBC Nikko by the FSA with profound gravity by supervising SMBC Nikko’s compliance measures to prevent reoccurrence and by taking make appropriate efforts to further strengthen our group wide compliance and control system.