Financial Services Agency

July 3, 2008 Financial Services Agency NOMURA Received a criminal complaint from the Securities and Exchange Surveillance Commission on suspicion of insider trading regarding administrative actions against a stock company. NOMURA Regarding stock transactions, etc. by former employees of As a result of examination based on the contents of the recurrence prevention measures, etc., the following situation was recognized. ○ Situation recognized as inadequate from the standpoint of internal control system in line with diversification of business and globalization (1) Recent financial situation The company is also diversifying and internationalizing its business amid the global trend of the globalization of business and the diversification of in-house human resources. As a result of verification from Takato's point of view, although it cannot be said that it is a violation of laws and regulations (Cabinet Office Ordinance Article 123, Item 5 on financial instruments business, etc. based on Article 40, Item 2 of the Financial Instruments and Exchange Act), the following As described above, inadequacies were recognized. 1. It cannot be said that there were no problems with the information management system within the company. 2. The internal rules and procedures, which were reviewed in light of the insider trading incident by the former manager of the company in 2003, were sufficient at the time, but they do not necessarily reflect the diversification of the company's operations. 3.It is expected that the company will continue to diversify and internationalize its business in the future. There is a need to dynamically build a system, and it is necessary to prepare a sufficient system and mechanism for that construction. In addition to announcing the details of the investigation, we are working to clarify recurrence prevention measures and responsibility. However, in addition to this, in response to changes in the business and environment in the future, the Company will establish an even higher level of internal control system, such as a system to identify and implement without delay any additional measures that will be newly required. It is necessary to improve business operations in this respect. As described above, the Company's system for preventing unfair trading related to corporate information was recognized as insufficient from the viewpoint of the internal control system in line with the diversification of business and the trend of globalization. It is a requirement for ordering necessary measures to improve the business operation situation pursuant to the provisions of Article 51 of the Commodity Exchange Act. When deemed appropriate”. Based on the above, the following administrative actions were taken against the company today. ○ Business Improvement Order (1) Human resources are diversifying as financial transactions and operations are diversifying and internationalizing. To build an overall effective internal control system covering a wide range of areas such as personnel management, code of conduct, internal rules and management system. In addition, in the future, with regard to the further diversification and internationalization of business and changes in the market environment, etc., establish a system that allows the necessary development of internal control systems to respond to these changes. (2) Systematically verify and maintain various rules regarding the internal control system for corporate information from the perspective of effectiveness, and ensure that officers and employees are thoroughly informed of them. In addition, when designing, developing and operating information management and IT systems, verify and confirm whether the system is consistent with these rules, business conditions and risk characteristics, and take necessary measures.