Sumitomo Mitsui Trust Bank accused of insider trading

Sumitomo Mitsui Trust Group (TSE: 8309) announced that the Securities and Exchange Surveillance Commission (SESC) has filed a criminal complaint against a former employee of its subsidiary, Sumitomo Mitsui Trust Bank, for alleged violations of insider trading regulations. The company is cooperating with the SESC and has already implemented disciplinary measures. An internal Investigation Committee, comprised of independent external directors and attorneys, has been established to investigate the matter, including similar trading activities by other employees and the effectiveness of internal rules. The Financial Services Agency has also requested reports from the bank under the Banking Act. Sumitomo Mitsui Trust Bank is enhancing its internal compliance systems, including revising its "Action Guideline," implementing stricter monitoring of employee transactions, developing clearer internal rules, improving insider information management, and reinforcing employee education. The group is also promoting the use of its internal reporting (hotline) system to foster a culture of transparency.