The Daiwa Securities Group’s Approach to Compliance
The Daiwa Securities Group is constantly taking steps to educate and train executives and employees to uphold external regulations, exercise self-discipline and appropriate conduct, and thereby maintain high ethical standards to fulfill its role in society. We aggressively conduct compliance training programs for our employees. These programs commence as soon as employees join the Group and continue through regularly scheduled training sessions throughout their career, thus ensuring that every employee is aware of, and thoroughly understands, compliance issues. As the Group pursues new business ventures in areas where the regulatory structure is still incomplete, employees are trained to approach all matters with strong self-discipline and legal awareness, refer to existing legal precedents whenever possible, and always adhere to accepted social norms of proper behavior.
In FY2011, Group companies continued to hold training related to insider trading regulations from FY2010. Furthermore, the Group promoted the integration of head office functions in pursuit of efficiency by consolidating the overlapping functions within Daiwa Securities Co. Ltd., Daiwa Securities Capital Markets Co. Ltd., and Daiwa Securities Group Inc. The consequent unification of management structures of the companies enabled the Group to strengthen its compliance systems further. Initiatives the Group took to eliminate any and all relations with corporate racketeers and other antisocial groups involved collecting information on their increasingly sophisticated methods by working in close contact with mainly police organizations and legal experts, and enhancing the Group’s various outward procedures for scrupulously severing contact with such undesirable groups. As a result, a system of cooperation among Group companies to perform checks preventing the outflow of funds to antisocial forces is now in place.
Compliance Initiatives at Daiwa Securities Co. Ltd.
Daiwa Securities Co. Ltd. is taking measures, under the compliance program, to ensure the effective operation of its internal control system in order to ensure strict compliance with laws and regulations.
Measures taken in FY2011 included strengthening the selfcorrecting mechanism of sales branches, an internal control system for head office departments as a whole, a structure to prevent unjust trade practices, and a compliance system that is being used on a global basis.
In FY2012, the Company will formulate the following three compliance programs aimed at bolstering internal control systems further, in moving us towards meeting our management targets.
1. Program for building effective and efficient internal control systems
2. Program for further improving customer sales and marketing manners
3. Program for raising the quality of internal control systems through thorough inspection
Basic Concept of Group-wide Corporate Ethics Hotline