Investment bank Nomura fined for failings
INVESTMENT bank Nomura has been fined £1.75m for "widespread" control failings over the trading of high-risk financial products.
The Financial Services Authority said the bank’s safeguards “fell far short“ of what was expected by the watchdog. The problems were uncovered in Nomura’s international equity derivatives business in June 2008 after a trader discovered pricing mistakes in the bank’s Hong Kong office.
The mis-pricing eventually forced Nomura to write down £16.8m from the value of its derivative book. Margaret Cole, FSA director of enforcement and financial crime, warned: “When a firm’s systems and controls fall short we will not hesitate to act.”
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