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 FY2012, Group companies continued to hold training related to insider trading regulations.
On April 1, 2013, compliance functions were divided into the Compliance Control Department, which oversees compliance controls throughout the Group, and the Compliance Department, which is in charge of supporting compliance related to the business operations of Daiwa Securities Co. Ltd. This new structure enhances the specialization and efficiency of compliance functions and will lead to a more robust Group compliance system.
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.
In FY2012, the Daiwa Securities Group worked to build more effective and efficient internal management systems, further improve customer solicitation and sales systems, and make qualitative improvements through an overhaul of internal management systems. For FY2013, the Company decided to create the following three compliance programs aimed at deepening understanding of the “true meaning” of internal rules, in moving towards achieving its management targets. The Company will strive to bolster its internal management systems further.
1. Program for upgrading and reinforcing Companywide internal management systems, and for fostering better awareness of professional ethics and compliance issues
2. Program for further improving quality of marketing, and firmly establishing customer-oriented sales
3. Program for building robust information management systems and system for eradicating antisocial forces

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