(Bloomberg) -- The head of a body representing Japanese brokerages warned Nomura Holdings Inc. and other member companies against complacency, saying a slew of scandals this year could shake public confidence in the industry.
“Those acts have raised questions whether there was a sense of arrogance or laxness or naive thinking among some people,” said Toshio Morita, chairman of Japan Securities Dealers Association. “They can undermine trust in our business.”
The comment from Morita, a former senior Nomura executive, follows a series of improprieties that resulted in regulatory penalties this year, from bond futures manipulation at Nomura to stock market rigging by online broker SBI Securities Co.
News that a Nomura employee who has since been fired had allegedly attempted in July to rob and kill a couple also heightened concern in the industry, coming at a time when Japan’s policymakers are trying to get individuals to invest more.
JSDA, the industry’s self-regulatory body, wants Nomura to work to “dispel concerns and regain trust” following the alleged crime in Hiroshima, Morita said. The organization will enhance compliance training for member companies, he said.
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