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Japan to seek Sumitomo Mitsui unit fine-sources
May 25, 2012 / 6:59 PM / 5 years ago

Japan to seek Sumitomo Mitsui unit fine-sources

TOKYO, May 26 (Reuters) - Japan’s securities regulator will seek a fine against a fund management arm of Sumitomo Mitsui Trust Holdings Inc for insider trading for the second time in two months and believes an employee of broker Nomura Holdings Inc was again in this case the source of the leak, people with knowledge of the matter said.

The Securities and Exchange Surveillance Commission (SESC) will recommend a fine against the fund management firm for insider trading related to the public share offering of lender Mizuho Financial Group Inc in 2010, the sources said.

The SESC believes an employee of Nomura, which was an underwriter of the Mizuho offering, tipped off a fund manager about the share sale before it was made public, the sources said, speaking on condition of anonymity.

Nomura declined to comment. Sumitomo Mitsui Trust could not be reached for comment. The SESC as a policy does not comment on individual cases or ongoing investigations.

It would mark the second time the regulator has punished Sumitomo Mitsui Trust, following a similar case in March, when the firm acknowledged one of its fund managers traded on inside information on a share offering by energy firm Inpex Corp .

Nomura was also the lead underwriter on the Inpex offering, and the regulator believes a Nomura employee leaked information on that share sale as well, sources with direct knowledge of the matter have told Reuters.

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