Japan’s financial regulator will order Nomura Holdings on Friday to bolster internal controls, sources with knowledge of the matter said, marking the lightest penalty possible in the wake of an insider trading scandal involving the brokerage.
The Financial Services Agency (FSA) will announce the business improvement order to Nomura after finding that it failed to prevent confidential information on three public share offerings it underwrote in 2010 from leaking to clients.
The move was widely expected after the securities regulator, which handled the investigation into Nomura, said earlier in the week that it had recommended the FSA sanction the broker without calling for a more damaging suspension of operations.
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