Japan’s financial regulator is urging Nomura Holdings Inc. to examine the cause of an alleged robbery and attempted murder committed by a former employee, and to formulate measures to prevent similar incidents, according to people familiar with the matter.
The Financial Services Agency wants the country’s largest brokerage to thoroughly review the alleged incident and analyze its root cause and background, said the people, who asked not to be identified because the information is private. The regulator will follow up with Nomura on its progress in implementing these steps, the people added.
“Through measures announced on Nov. 6, Nomura will intensify efforts to enforce strict adherence to the Code of Conduct by every employee and strive to restore the trust of our stakeholders,” the Tokyo-based company said.
An FSA representative declined to comment.
The development is the latest example of Nomura entering the regulator’s cross hairs. The agency fined the firm last month for having manipulated Japan’s government bond futures market in 2021, a scandal that’s prompted some clients to shift bond trading and underwriting business to rivals.
The latest edict follows reports that a 29-year-old man was arrested on suspicion of having drugged an elderly customer and his spouse in Hiroshima, stealing about ¥26 million in cash from their home and setting it on fire. The suspect has been accused of robbery, arson and attempted murder.
While the couple in their 80s escaped safely, the news has rocked Japan’s financial industry in part because the suspect was a Nomura employee at the time of the alleged incident in July, before he was dismissed.
The company is tightening rules governing employee visits to clients’ homes, which is a common practice in Japan. The firm said it’s co-operating fully with the police investigation, according to a statement Wednesday.
The FSA wants Nomura to come up with both short- and longer-term solutions, the people said.
Brokerages in Japan are increasingly competing to manage a larger slice of the nation’s more than ¥2 quadrillion in household financial assets. People aged 70 and older own nearly 40% of those assets, according to a government report in August.
This article was generated from an automated news agency feed without modifications to text.
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