The Financial Services Agency has fined Nikko Cordial Corp., a major brokerage, 500 million yen for padding profits, the biggest penalty ever levied by the agency, an official said Friday.
The fine was imposed by the financial watchdog on the recommendation made last month by the Securities and Exchange Surveillance Commission, FSA spokeswoman Yoko Sugihara said.
Nikko Cordial Corp., one of Japan's top brokerages, which also has an investment banking alliance with Citigroup, said Dec. 18 it would correct its stated earnings for fiscal 2004 and 2005, as inappropriate booking of proceeds from derivatives trading inflated earnings.