Sumitomo Mitsui Trust admits insider trading probe
SUMITOMO Mitsui Trust said yesterday it was “fully cooperating” with a probe by the Japanese Securities and Exchange Surveillance Commission into alleged insider trading.
Reports emerged over the weekend that the company – known as Chuo Mitsui Asset Trust and Banking Company until a merger in April – was being investigated for allegedly trading on information ahead of a share offering by Mizuho Financial Group in June 2010.
“It is true that Securities and Exchange Surveillance Commission is investigating this issue, and we are fully cooperating with SESC concerning the investigation,” the company said in a statement yesterday.
The group also said the alleged trades were carried out by a “former employee”.
Shares of Sumitomo, which is facing its second fine for insider trading in two months, fell 0.5 per cent yesterday.
Shares in Nomura Holdings, which was an underwriter on the ¥780bn (£6.25bn) Mizuho offering, also suffered, after sources said a Nomura employee provided the tip-off.