Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Tuesday, November 8, 2022, 5:26 pm to 5:40 pm)

[Questions and answers:]

Q.

Regarding the market manipulation case by SMBC Nikko Securities, the Sumitomo Mitsui Financial Group and SMBC Nikko Securities have submitted a business improvement plan to Financial Services Agency (FSA). In response to FSA’s request for a clarification of management responsibility, SMBC Nikko Securities announced that President Kondo would be receiving no compensation for six months and would be resigning once the end of the restructuring process is in sight. Could you please let us hear your assessment of the improvement plan and the treatment of President Kondo?

A.

First of all, I would like to reiterate in regard to this case that it is extremely regrettable that such a major securities company conducted unfair transactions and improperly transferred customer information to and from its group’s bank.
In its business improvement order to SMBC Nikko Securities, FSA sought clarification of management responsibility in light of the market manipulation incident. I would like to refrain from expressing my personal opinion or assessment of the specific measures to be taken by SMBC Nikko Securities, as this is a matter for the company to decide on its own initiative.
In any event, I believe that the recent personnel actions and business improvement plan by SMBC Nikko Securities and others are a starting point for future business improvement.
FSA will continue to closely follow up and check whether the management at SMBC Nikko Securities and elsewhere is exercising strong leadership, establishing an effective business management system, and steadily implementing business improvement measures.