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Hong Kong securities regulator fines Nomura Hong Kong for disclosure failings
[HONG KONG] Hong Kong's securities regulator has fined Japanese bank Nomura HK$4.5 million (S$823,321) for failing to promptly report trading misconduct by a staff member who falsified his position in a bid to conceal a loss of US$3.3 million.
The Securities and Futures Commission said on Thursday that Nomura Hong Kong waited more than two weeks to alert the regulator that a member of its staff, on secondment from the bank's Japan business, had admitted making false entries into the firm's risk management system to hide his risk exposure.
The bank sent the staff member back to Japan before alerting the SFC and before it had completed its internal investigation, the SFC said. Nomura also failed to voluntarily hand over to the SFC a preliminary internal report on the incident.
The SFC code of conduct obliges regulated firms to alert the regulator immediately in the event of any material breach of the rules.
Nomura was not immediately available for comment.