Nomura To Pay $25 Mln To Settle SEC Charges For Misleading Bond Customers

(RTTNews) - Nomura Securities International Inc., a unit of Japanese financial holding company Nomura Holdings, Inc., agreed to repay customers about $25 million to settle charges in U.S. for its failure to adequately supervise traders in mortgage-backed securities.

The U.S. Securities and Exchange Commission said the investment bank's bond traders made false and misleading statements to customers while negotiating sales of commercial and residential mortgage-backed securities

The SEC further found that the company lacked compliance and surveillance procedures that were reasonably designed to prevent and detect this misconduct.

Sanjay Wadhwa, Senior Associate Director of the SEC's New York Regional Office, said, "These orders underscore that firms must have adequate supervisory procedures, particularly surrounding the sale of complex instruments. Weak procedures, such as those found here, may enable employee misconduct to go undetected."