message from senior management - smbc日興証券 · 2016-11-09 · message from senior management....
TRANSCRIPT
Chairman
Shigenobu Aikyo
Message from Senior Management
President & CEO
Eiji Watanabe
Ever since becoming a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation on
October 1, 2009, we have focused on the continuous expansion of our business in the retail
divisions and the creation of new business in the wholesale divisions as the main securities
company of Sumitomo Mitsui Financial Group.
We have enhanced our services to individual clients, while steadily establishing a framework that
enables us to respond to various needs of corporate clients. In overseas markets, following the
start of our securities business in London, we also expanded such businesses in New York,
Hong Kong, and Shanghai. We newly established the Research Head Office, which directly relates
to corporate client business, and have also strengthened our trading capabilities of equities and
bonds. We will continue to enhance our business platform so that we can provide more value
added solutions to meet the financial needs of various clients precisely and promptly.
As of April 1, 2011, Nikko Cordial Securities Inc. renamed itself as SMBC Nikko Securities Inc.
The new company name represents our strong determination to provide high quality services to
the clients of both companies as a member of Sumitomo Mitsui Financial Group by exercising
professional skills and knowledge in cooperation with Sumitomo Mitsui Banking Corporation
(SMBC).
Keeping the spirit of a “cordial” attitude, which Nikko Securities had used in its company
name for 10 years, as the very fiber of each of our employees, we will strive to offer our clients
the highest level of satisfaction and security to promote the trust that we have earned from so
many people for over 90 years.
All of our directors and employees will continue to give first priority to our clients and make an
all-out effort to become the No.1 comprehensive securities company in Japan.
We would very much appreciate your understanding and continued support over the years to
come.
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A Member of Sumitomo Mitsui Financial GroupManagement Philosophy
History
Shareholding Ratio 100%
Shareholding Ratio 100%
In June 2009, the former Nikko Cordial Securities Inc. set up Nikko Cordial Securities De-merger Preparatory Company Ltd., and on October 1, 2009, succeeded all of the operations (excluding selected assets and liabilities) of the former Nikko Cordial Securities Inc. and certain businesses, including the domestic debt and equity underwriting businesses, of Nikko Citigroup Limited (current Citigroup Global Markets Japan Inc.) by means of an absorption-type corporate demerger. On October 1, 2009, after succeeding such businesses, Nikko Cordial Securities De-merger Preparatory Company Ltd. renamed itself as Nikko Cordial Securities Inc. to start as a new securities and investment banking firm, with retail and wholesale business arms.
As of October 1, 2009, Sumitomo Mitsui Banking Corporation acquired all the shares in the renamed Nikko Cordial Securities Inc., and through this operation, the renamed Nikko Cordial Securities Inc. became a member of Sumitomo Mitsui Financial Group.
As of April 1, 2011, Nikko Cordial Securities Inc. renamed itself as SMBC Nikko Securities Inc.
Management Philosophy
To provide higher value, based on a customer-first principle.
To seek to be a company that grows together with our customers,and inspires their supreme trust.
To fulfill a role as a sound financial intermediary in order to contribute to the development of both capital markets and our society.
To create a work environment in which each employee demonstrates individualityunder a sense of unity, while respecting diversity.
Our company has served clients for more than 90 years since it started business as Kawashimaya Shoten in July 1918. It made a fresh start in October 2009 as a member of Sumitomo Mitsui Financial Group. As one of the largest full-line financial groups in Japan, we will provide high-quality products and services to our clients.
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1918 July Kawashimaya Shoten founded
1920 April Reorganized as Kawashimaya Shoten Co., Ltd.
June The former Nikko Securities Co., Ltd. established
1943 September The former Kawashimaya Securities and Kawashimaya Shoten Co., Ltd. merged with and name changed to Kawashimaya Securities
1944 April The Nikko Securities Co., Ltd. established
1948 November Registered as a securities business under the Securities Exchange Law
1949 April Became official member of Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock Exchange
1951 June Completed registration as a securities management company under the Securities Investment Trust Law
1961 October The Company listed its shares on the second sections of the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock Exchange
1970 February The Company listed its shares on the first sections of the Tokyo Stock Exchange, Osaka Securities Exchange, and Nagoya Stock Exchange (delisted in January 2008 when the Company became a wholly-owned subsidiary of Citigroup)
1999 March Nikko Salomon Smith Barney Limited (later to become Nikko Citigroup Limited), an investment banking joint venture with Citigroup, started operations
2001 March Nikko Securities De-merger Preparatory Company established
October Nikko Securities De-merger Preparatory Company took over the entire securities business and other operations from The Nikko Securities Co., Ltd. changed its name to Nikko Cordial Securities Inc. The Nikko Securities Co., Ltd. was renamed Nikko Cordial Corporation as a holding company.
2007 May Became Citigroup’s subsidiary through the public offering of shares of Nikko Cordial Corporation (later becoming a wholly-owned subsidiary through a triangular share exchange)
September Registered as first-class financial instrument dealer, second-class financial instrument dealer, and investment advisor/agent under the newly enforced Financial Instruments & Exchange Law.
2008 January Registered as an investment manager under the Financial Instruments & Exchange Law
2009 June Nikko Cordial Securities De-merger Preparatory Company Ltd. established
October Nikko Cordial Securities De-merger Preparatory Company Ltd. took over all of the operations of the former Nikko Cordial Securities Inc. and certain businesses of Nikko Citigroup Limited (current Citigroup Global Markets Japan Inc.) and was renamed Nikko Cordial Securities Inc.
Became a member of Sumitomo Mitsui Financial Group upon the transfer of shares to Sumitomo Mitsui Banking Corporation
2011 April Nikko Cordial Securities Inc. changed its name to SMBC Nikko Securities Inc.
SMBC Nikko Securities will provide clients with integrated financial services and high value-added solutions that meet the many and varied needs of our clients.
Over more than 90 years since its foundation in July 1918, SMBC Nikko Securities has developed solid relationships built on trust with individuals and corporate clients. With the move to become a member of Sumitomo Mitsui Financial Group, the Company, which holds know-how acquired over many years and a solid client base, can collaborate with Sumitomo Mitsui Banking Corporation, which boasts a huge business network and high credibility. In both the retail and wholesale business areas, we will seek integration of banking and securities businesses and provide clients with advanced financial services based on our collective capabilities. Under a business alliance agreement with Citigroup, we will continue to utilize their global business network and other resources.
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SMBC Nikko Securities will provide clients with integrated financial services and high value-added solutions that meet the many and varied needs of our clients.
Over more than 90 years since its foundation in July 1918, SMBC Nikko Securities has developed solid relationships built on trust with individuals and corporate clients. With the move to become a member of Sumitomo Mitsui Financial Group, the Company, which holds know-how acquired over many years and a solid client base, can collaborate with Sumitomo Mitsui Banking Corporation, which boasts a huge business network and high credibility. In both the retail and wholesale business areas, we will seek integration of banking and securities businesses and provide clients with advanced financial services based on our collective capabilities. Under a business alliance agreement with Citigroup, we will continue to utilize their global business network and other resources.
We provide individual clients with high-quality consulting services to meet their diversified asset management needs at 109 branches nationwide. We offer two types of courses. Under the General Course, clients can trade financial products by receiving advice and investment information from a person in a charge position at a branch. For the Direct Course, clients can trade equities on a discounted brokerage commission through our on-line trade system or call center. We provide a wide variety of financial products and services to precisely meet clients’ diversified needs through the following channels: branches, the call center, and the on-line trade system.
For Corporate clients, we have set up divisions according to business type in order to meet various clients’ needs in each business category. We provide higher value to corporate clients from unlisted companies to corporations and financial institutions and public-service corporations to local public authorities and government organizations through various services in cooperation with specialized sections.
Summary of Business
In the investment banking business, our highly professional staff offer corporate clients solutions on M&A and fundraising to support their corporate strategies in the global age.
In the financial product business, we offer trading capabilities and financial products to meet the various needs of our clients, including institutional investors.
Our research service is a platform on which we offer leading information based on our original research. In August 2010, we newly established Equity Research Division to analyze earnings and stock price trends of individual companies and business sectors and provide investment information.
In our overseas markets, SMBC Nikko Capital Markets Limited and SMBC Nikko Securities America, Inc., subsidiaries of SMBC in the United Kingdom and the United States respectively, provide securities business services, including underwriting activities (SMBC Nikko Capital Markets Limited), arrangement of Samurai bonds, M&A advisory and Japanese stock broking, in collaboration with us. In addition, SMBC Nikko Securities (Hong Kong) Limited provides Japanese stock broking and M&A advisory services, and SMBC Nikko Investment Consulting (Shanghai) Limited offers M&A advisory related services. These overseas arms will continue to offer high quality financial services to their clients on a global basis.
To meet the diversified needs of our clients, we strive to provide high value-added financial products and services and solutions and continue to be a strategic partner for clients.
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We have established a service network for
domest ic c l ients based on 109 branches
nationwide.
To capture investment opportunities in global
economic growth for the future and realize
international diversified investment, we tout From
Japan to the World as a key philosophy and offer
various financial products, such as equities, bonds,
investment trusts, annuity and insurance products,
and a custom-made asset management service,
Nikko Fund Wrap/SMA.
We aim to be the best partner for clients in
asset management by providing high-quality
consulting services after taking into account
clients’ investment purposes and risk tolerance.
Our branches each have a privacy-conscious
space where we provide consulting services so
that clients who visit our branches can consult us
on asset management with utmost confidence.
We of fer clients three channels in which to
complete transactions. Clients can choose a
channel that suits their needs.
● Branches
Our 109 branches nationwide provide various
services that meet the needs of clients, including
asset management consulting services, account
startups, and administrative procedures.
● Call Center
At the Nikko Contact Center, our specialized staff,
who have received high evaluations from a third-
party organization, handle orders for equity trading
and respond to inquiries from clients. The center
facilitates clients who do not have access to
physical branches.
● On-line Trade
We have upgraded Nikko EZ Trade so that clients
can trade at their own convenience using their
own judgment while having access to a variety
of financial products and abundant sources of
investment information.
In addition, we will improve on our system in which
a person in charge and specialized sections, such
as Equity Advice Center and the Investment Trust
Assist Center, jointly support clients in accordance
with their needs. This multiple support system is
unique to SMBC Nikko Securities.
Under the management philosophy of placing
clients first to provide them with ever higher
value, we continue to strive to improve the quality
of customer service. We have received high
evaluations from third-party organizations, as
detailed below.
As a leader in the financial product intermediary
business, we form partnerships with individuals
and companies with unique specialties to offer
clients various distribution channels for financial
products by providing infrastructures such as
systems and financial product information and
business support. The individuals and companies
we partner with share our philosophy of remaining
close to clients and treating clients with trust and
sincerity while offering expert financial know-how.
・ Won the highest award in the contest of Best Contact Center of The Year 2010・ COPC-2000® CSP standards Obtained certification for Inbound Customer Contact Center Services (2008) Obtained certification for Outbound Customer Contact Center Services (2010)・ CRM Best Practice Award (held under the sponsorship of by CRM Association Japan) Won the award for three consecutive years (from 2008 to 2010)・ National Telephone Manners Contest (held under the sponsorship of by Japan Telecom Users Association) Won the prize for five consecutive years (from 2006 to 2010)・ HDI Benchmarking (held under the sponsorship of HDI-Japan) Won 3 Stars Customer Service, the highest rating, for five consecutive years
(from 2006 to 2010)
Retail Sales Network
Financial Product Intermediary Business
Services to ClientsFrom Japan to the World
SMBC Nikko Securities will provide high-quality consulting services and solutions
in cooperation with specialized sections to meet our clients’ needs.Evaluations from third-party organizations (sample)
Versatile Support System to Meet the Various Needs of Individual Clients
Clients On-line tradingCall center
Retail sales network
Support by sales divisions and branches and specialized sections
109 branches nationwide
Equity Advice CenterInvestment Trust Assist Center
Nikko EZ TradeNikko Contact Center
Individual Clients
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Owners of Companies and Executives and Employees of Listed Companies
Corporate Clients
Our private banking services mainly consist of
consulting services to clients including owners
of listed companies. We provide custom-made
proposals to each client and strive to realize these
proposals by using all available resources. We aim
to be an indispensable part of clients’ business
by offering various support measures such as
providing solutions on the preservation of client’s
assets, fund management, and the effective use
of clients’ assets and proposals of specialized
financial products.
After grasping their priorities and potential needs,
we provide total solutions to clients such as
corporations and financial institutions based on our
abundance of experience, market knowledge, and
a variety of financial products and services in close
cooperation with financial product division and
investment banking division. To respond to clients’
inquiries and requests on various matters including
fund-raising, fund management, and employee
benefits, we will offer strategic backup services
based on solid relationships of trust.
We also offer our clients a window to cutting-
edge corporate management and asset management
through guidance on market information and
various seminars.
We provide client companies with all the support
they need until they go public, such as guidance
and advice at the time of initial public offering and
suggestions about capital policy, group strategy,
and information disclosure. We also offer solutions
including M&A and the likes to increase clients’
corporate value, preserve their assets, and transfer
their businesses in a stable manner.
We of fe r c l ients, inc luding publ ic-ser v ice
corporat ions, loca l publ ic author i t ies and
government organizations, wide-ranging consulting
services based on our abundant experience.
Based on multi-faced approaches in cooperation
with specialized sections, we provide the following
solutions: providing materials that support clients’
bond investment; suggesting investment policies
in view of the needs of competent authorities and
clients such as nationwide public-service and
non-taxable corporations. We also offer services
such as portfolio analysis by using the asset
management and analysis system, NBA (Nikko
Bond Analysis).
We provide executives and employees of listed
companies with proposals on wealth building in
accordance with clients’ life plans. Our proposals
include advice on financial products and services
based on clients’ risk tolerance in a market
environment that is changing every day. We also
propose management of severance allowances
after retirement and reallocation of assets.
Private Banking
Corporations and Financial Institutions
Companies Planning IPO
Public-Service and Non-Taxable Corporations
Workplace Sales
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We provide advice on M&As, an important option
in the corporate strategy these days, including
acquisitions, mergers, capital and business
alliances, and business restructurings, to meet
each client’s needs. We support all operations:
p roposa l o f an M& A , bus iness va lua t ion
calculation, due diligence, preparation of contracts,
and closing. After precisely grasping the key
concerns, such as related laws and systems,
industry trends, the business environment, and the
global situation, we form a specialist project team
that includes staff who are fully conversant with the
industry and M&A advisory operations to offer the
most appropriate advice to clients.
To respond to f inancing needs, which are
indispensable to achieve long-term business
targets, we offer various direct financing solutions,
centering on public offerings, underwriting of
various bonds, and liquidation of owned assets. We
provide all types of services related to fund-raising
operations: proposal of an optimal-fund raising
scheme, marketing management to investors,
decision of optimal conditions, and documentation.
In the investment banking business, we focus on corporate clients and offer them optimal solutions to meet their various needs and the market environments they operate in. Our staff, dominated by experts with excellent track records in M&A and fund-raising, provide services to thoroughly support corporations at home and abroad using business know-how accumulated through our long experience.
As a good business partner that strongly supports corporations, we continue to provide high value-added services by making full use of an extensive network centering on Sumitomo Mitsui Financial Group.
M&A Advisory
Underwriting Equities and Bonds
Investment BankingWe offer corporate clients solutions on M&A and fund-raising
to support their corporate strategies in the global age.
As a Partner for Executing Corporate Strategy
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Asset management products
Investment trusts Insurance Wrap account
Globally balancedDomestic equityGlobal equityDomestic bondGlobal bondAlternative funds
Variable annuity insuranceFixed-amount annuity insuranceForeign-currency annuity insuranceBusiness annuity insurance
Custom-made globally diversified investment services, etc.
Financial ProductsWe will respond to various clients’ needs
by strengthening our financial product development capabilities and our trading system.
We provide various types of equity-related
products and services to individual and corporate
clients including institutional investors. Our trading
system offers an extended range of services to
respond to clients’ various needs. Regarding
derivatives such as futures and options, we meet
clients’ various needs by handling not only trading
at the exchanges, but also OTC derivative trading.
We continue to strengthen our Sales & Trading
system to improve our order execution capability.
Our comprehensive strengths—a high level of
capability to structure products, offer attractive
primary products, and present timely research
information—enables us to provide products to
an extensive sales network. We develop various
types of bond trading businesses to meet clients’
diversified investment needs. We also offer financial
solutions to satisfy a wide range of clients’ needs
by engineering and providing various derivative
products, derivative-containing products such as
structured notes, and securitized products that
require the latest financial engineering technique
and risk management capability.
We develop and offer asset management products
such as investment trusts, insurance, and fund
wraps. We gather specialists in each field and aim
to develop one-of-a-kind innovative products after
grasping current market trends and clients’ needs.
Basing on our best product policy, we offer clients
new options for international diversified investment
by developing a variety of products with fund
management companies and insurance companies
at home and abroad.
Equities
Bonds
Asset Management Products
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ResearchWe provide high value-added information
to support clients’ investment strategy.
We analyze the rapidly changing global economy
and market trends from various perspectives and
promptly offer the latest domestic and international
information in an easy-to-understand format.
Regarding information on f ixed income
products, including analysis on the domestic
and international macro economy and financial
markets, we provide clients with a variety of
information on bond markets and credit reports
on domestic corporate bond issuers as well
as Samurai bonds (overseas companies and
sovereign nations). To provide clients with high-
quality investment opportunity, we also offer
the NBA (Nikko Bond Analysis) service, which
enables diverse portfolio management, analysis,
and proposal. We have received a high evaluation
from many clients. Regarding information on
equity, we have organized equity research team
in which competent top-ranking analysts provide
institutional investors at home and abroad with
expert information on earnings and stock price
trends of individual companies and business
sectors in addition to overall equity market
information analysis. We continue to expand the
scope of equity research in order to continuously
upgrade our information providing service.
We have implemented various joint operational measures with SMBC since we started operations as a member of Sumitomo Mitsui Financial Group on October 1, 2009.
Businesses Operated Jointly with Sumitomo Mitsui Banking Corporation (SMBC)
The new investment trust products developed jointly
by SMBC Nikko Securities and SMBC were launched
on the market. Both companies will continue to
develop and market more attractive f inancial
products.
Jointly Developed Investment Trusts
In January 2011, we will take over the services for
retail clients currently being offered by SMBC Friend
Securities Co., Ltd. in collaboration with SMBC. We
will offer clients higher-level services by utilizing
the know-how and human resources SMBC Friend
Securities has cultivated through collaboration
with SMBC and the strength of the brand and its
capabilities to offer products and sales supports that
SMBC Nikko Securities, which aims to become a
global integrated securities company, has developed.
Integration of Services Offered by SMBC Friend Securities in Collaboration with SMBC
We have commenced a customer referral service in
partnership SMBC. We will offer clients introduced
by SMBC the most appropriate products and
services to specifically meet their needs. We also
refer our clients to SMBC when they request us to do
so.
Customer Referral Service
We have received a license to trade as a banking
agency business (SMBC as the bank to which we
belong) from the Kanto Finance Bureau. We started
our banking agency business from October 2010
after concluding a business collaboration agreement
with SMBC. To meet a variety of clients’ needs, we
will jointly offer clients high value-added products
and services.
Commencement of Banking Agency Business
We are engaged in business collaboration with
SMBC Nikko Capital Markets Limited and SMBC
Nikko Securities America, Inc., SMBC’s subsidiaries
in London and New York respectively, to jointly
provide securities businesses including underwriting
(only in London), arrangement of Samurai bonds,
M&A advisory and Japanese stock broking. These
overseas affiliates provide expanded and high quality
services to clients on a global basis.
Expansion of Securities Business Activities in London and New York
As an agent for SMBC, we star ted a financial
instruments intermediary service for corporate
clients in January 2010 and for individual clients in
April 2010. We have been offering clients financial
products and services that meet clients’ fund
management needs by capitalizing on our strengths
with a lineup of products and infrastructure designed
for securities operations.
Financial Instruments Intermediary Service
In July 2010, we announced that SMBC Nikko
Securities, SMBC, and Barclays Bank PLC had
reached an agreement to commence joint operations
for wealthy individuals in Japan. With effect the
business model, we provide investment solution
through our division in charge to clients introduced
by SMBC, utilizing the unique strengths and the
know-how of Barclays Wealth, a leading global
wealth manager part of the Barclays group.
Commencement of Joint Wealth Management
W e h a v e i n s t a l l e d AT M
machines that accept SMBC’s
cash cards at our Main Branch,
as we l l as the Ikebukuro,
Yokohamaekimae, Nagoya,
Osaka and Kobe branches, etc.
We plan to increase the number
of branches with ATM machines
by monitoring ATM usage.
Installing SMBC’s ATMs at Branches of SMBC Nikko Securities
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Handling environment-conscious products●Green Week
Green Committee
President & CEO
Divisions, branches, and group companies
Sharing information and collaboration
Sharing informationand collaboration
SMBC Nikko Securities promotes CSR initiatives using our position as financial service company primarily in the following four initiatives: Env i ronment Conservat ion In i t i a t i ves , F inanc ia l and Economic Education, Regional Contribution, and Support of Disaster Victims.
CSR Initiatives
We set up the Green Committee, a cross-sectional
committee to promote CSR initiatives, in January
2010. The President & CEO himself chairs the
committee, which sets the annual target of CSR
initiatives, and improves internal communication.
We actively of fer oppor tunit ies to invest in companies that take a pro-environmental business approach through sales of financial products. In 1999, we started handling the Nikko Eco Fund, the first SRI (Social Responsibility Investment) fund in Japan to introduce a stance of environment conservation. Since then, we have increased our lineup of environment-related investment trusts. In February 2010, we commenced handling of the SMBC Nikko World Bank Bond Fund. This fund is the world’s first fund developed in cooperation with the World Bank to invest in World Bank green bonds. A portion of the profits from this fund are donated to UNICEF and the Japanese Red Cross. We collectively refer to bonds designed to contribute to environment protection as green bonds. We aim to contribute to global environment conservation by limiting the use of funds raised by green bonds to loans related to environmental preservation and conservation.
In addition to direct activities such as the reduction in
energy consumption and paper and waste discharge,
we are promoting such initiatives taking advantage
of our position as a securities company, including
by offering society an opportunity to investing in
companies that take pro-environmental approach
to business so as to support such companies to
implement their environment initiatives.
Recognizing the dissemination of accurate knowledge
on securities and finance as the mission of a financial
service company, we promote financial and economic
education to foster individual investors.
Employees at our headquar ters and branches
participate in cleanup and volunteer activities with
the aim of contributing to regional society.
We have donated relief supplies offered by in-house
volunteers and a portion of the profits from funds
related to disaster-stricken regions to support victims
of natural disasters around the world. We open bank
accounts to gather donations from our employees,
encouraging their participation. The company and
employees jointly participate in these activities.
To promote environment conservation initiatives
effectively and efficiently, we set up environmental
management systems and acquired ISO14001*
cer tif ication in April 2001, becoming the f irst
Japanese company in the securities industry. We
have acquired ISO14001 certification for the Kabuto-
cho Nikko Building and the Tokyo Dia Building that
houses our headquarters function to strengthen our
initiatives.
In summer, we hold Nikko Family Exciting Experience
Day, a special hand-on learning program for
elementary school students and their families at our
branches. Participants can look around our office
and learn about the economy, the flow of money,
stocks, and the social roles of financial institutions.
We offer company visits and hold seminars so that
students and laypeople can deepen their knowledge
of securities firms and securities investment. We
hold seminars on the system of money and stocks
and tours of the Tokyo Stock Exchange and our
headquarters and branches.
We help foster future investors and human resources
that will shoulder the securities industry by presenting
courses on securities investment and dispatching
instructors through Nikko Financial Intelligence, Inc.,
a group company.
*ISO 14001 is an international standard for a system which helps corporations ascertain the environmental impact of their business operations and assist them in making continual improvement in their environmental management through the Plan-Do-Check-Act methodology.
● New Green Committee ● Environment Conservation Initiatives● Financial and Economic Education ● Regional Contribution
● Support of Disaster Victims
ISO14001Environmental Management Systems
Nikko Family Exciting Experience Day
Company Visits and Seminars
Presenting Courses at Universities
We held “Green Week,” a period to enhance
environment conservation and social contribution
a c t i v i t i e s , w i t h t h e a im o f d e e p e n in g th e
understanding of our directors and employees
on environment conservation through actual
participation in social contribution activities, while
activating communication between regional societies
and participating directors and employees. We plan
to continue to implement the activities once a year.
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StatutoryAuditors
Head Office divisions and Front-Line Offices Nikko’s subsidiaries, etc.
Compliance Unit
ComplianceCommittee
Board of Directors
ManagementCommittee
Internal Audit Unit
Instruction, monitoring, and legal supports AuditReport and
consultation
ReportReport
Report
Report Request for resolution, report
Requestfor advice
Audit
AuditBoard of Directors
Head Office divisionsand Front-Line Offices Nikko’s subsidiaries, etc.
Risk Management Committee Management Committee
Risk Management Divisions
Approval and monitoring Application and report
Report
Report Request for resolution, reportRequest for advice
( As of December 31, 2010)
Corporate Governance
At our company, four statutory auditors (three of
whom are outside statutory auditors) attend meetings
of the Board of Directors, which consists of 16
directors and decides the company’s management
policy, management plans, and other important
matters. In the Board of Directors’ meeting, the
board members regularly receive reports from the
advisory council, which deliberate and examine
corporate governance matters including compliance,
risk management, and information systems, and
ensure the company’s operations are performed
appropriately. The statutory auditors also attend
the management committee, a decision-making
Fully recognizing significant social responsibilities
as a player in the financial product market, we have
positioned compliance as one of the most important
management priorities, and constantly upgrade and
implement our compliance system to enhance the
understanding and trust of market participants and
society as a whole.
Securities companies are surrounded by various and
complicated risks, such as market risk, credit risk,
liquidity risk, operational risk including processing
risk and system risk, legal risk, and reputation risk.
We continuously enhance and implement our risk
management system so that we can recognize,
appropriately manage and control these risks to
maintain the company’s soundness and enhance
profitability.
body for the overall business, and each meeting
regarding the execution of operations to grasp how
directors perform their duties. Furthermore, the
statutory auditors receive detailed reports, on their
independent authority, from each organization that is
responsible for performing operations.
We adopt an executive officer system with the
aim of effective execution of the management plan
and other important operations that are approved at
the Board of Directors’ meeting while clarifying where
responsibility lies. Currently, 39 executive officers are
appointed by the Board of Directors’ meeting.
Corporate Governance System
Compliance System Risk Management System
(As of April 1, 2011)
Corporate Overview
Company Name SMBC Nikko Securities Inc.
Head Office 3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100-8325, Japan
Phone Number +81-3-5644-3111 (Head office)Representative President & CEO Eiji Watanabe
Date of Incorporation June 15, 2009
Commencement of Operations October 1, 2009 * *Took over all of the operations (excluding selected assets and liabilities) of the former
Nikko Cordial Securities Inc. and certain businesses of Nikko Citigroup Limited (current
Citigroup Global Markets Japan Inc.)
Financial Instrument Dealer Director of Kanto Local Finance BureauRegistration Number (Financial instruments firms) No.2251
URL www.smbcnikko.co.jp/en
Membership in Associations Japan Securities Dealers Association
Japan Securities Investment Advisers Association
The Financial Futures Association of Japan
This material contains certain forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may materially differ from those contained in the forward-looking statements as a result of various factors. Important factors that might cause such a material difference include, but are not limited to, those economic conditions referred to in this material as assumptions.
In addition, the following items are among the factors that could cause actual results to differ materially from the forward-looking statements in this material: business conditions in the securities industry, the regulatory environment, new legislation, competition with other financial services companies, changing technology and evolving securities industry standards and similar matters.
The information contained in this material is based on data available as of March 15, 2011 and this material is intended to provide information for a general description of SMBC Nikko Securities Inc. Any information and opinions contained in this material reflect our judgment as of the date of presentation of the material (March 15, 2011) and are subject to change without notice. No guarantees, representations, or warranties are made as to the accuracy or completeness of such information. Reference information contained and shown in this material for the period before September 2009 are based on the former Nikko Cordial Securities Inc.
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