Defendant Name: SMBC Nikko Securities America, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Sumitomo Mitsui Financial Group, Inc.
SIC Code: 6726
CUSIP: 86562M20

Initial Case Details

Legal Case Name In the Matter of SMBC Nikko Securities America, Inc.
First Document Date 08-Aug-2023
Initial Filing Format Administrative Action
File Number 3-21551
Allegation Type Broker Dealer

Violations Alleged

Other
• Failure to supervise under Section 15(b)(4)(E) Exchange Act

Resolutions

First Resolution Date 08-Aug-2023
Headline Total Penalty and Disgorgement $9,000,000

Related Documents:

34-98075 08-Aug-2023 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On August 8, 2023, the SEC instituted settled administrative and cease-and-desist proceedings against SMBC Nikko Securities America, Inc., stating: "These proceedings arise out of the widespread and longstanding failure of SMBC employees throughout the firm, including at senior levels, to adhere to certain of these essential requirements and the SMBC’s own policies. Using their personal devices, these employees communicated both internally and externally by personal text messages, or other text messaging platforms such as WhatsApp and Signal (“off-channel communications”)."
2023-149_3-21551 08-Aug-2023 Press Release--Administrative Proceeding
SEC Charges 11 Wall Street Firms with Widespread Recordkeeping Failures
On August 8, 2023, the SEC "announced charges against10 firms in their capacity as broker-dealers and one dually registered broker-dealer and investment adviser for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders. They acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, agreed to pay combined penalties of$289 million as outlined below, and have begun implementing improvements to their compliance policies and procedures to address these violations."