Tokyo, 25 June, /AJMEDIA/
SMBC Nikko Securities Inc. said Friday an investigation panel looking into the major Japanese brokerage’s trading scandal has called it an “inappropriate and unjust act,” adding the incident was not prevented because of a failure in its corporate governance system.
In a report submitted to the brokerage the same day, the panel of three lawyers also stated that both management and employees had lacked norms that could have averted the alleged market manipulation, which led to the arrests and indictments of the company’s former deputy president and five others.
The panel urged SMBC Nikko to strengthen its compliance and establish a structure that would enable the company to identify misconducts.
The report also found that company President Yuichiro Kondo had received an email from the former deputy president with a file attachment that suggested possible market manipulation.
The email, sent to Kondo and some other executives, mentioned utilizing the company’s own position to support the price of a stock when it fell.
