NH Investment & Securities said on the 30th that it has begun personnel and organizational changes to restore trust from customers and the market in connection with suspicions that an in-house executive used nonpublic information.
The company immediately removed the executive under investigation by the joint response team from the position. NH Investment & Securities said, "We take seriously that a person in a role requiring the highest level of integrity has been implicated in an unfortunate matter, and this is a decision to faithfully cooperate with the investigation and to reestablish internal discipline."
Along with this, the company newly formed a task force (TFT) to strengthen internal controls, with President Yun Byung-un as Head of Team. Executives from related departments, including compliance monitoring and audit, will join the TFT, which will begin an intensive overhaul of internal controls.
First, the company will conduct a full review of all employees' securities accounts and a self-check of the internal control system, identify problems, and move to improve the system. It also plans to benchmark cases from overseas financial firms and, through advice from external law firms, introduce advanced systems and regulations.
Yun said, "These personnel measures were the most basic and swift steps that had to be taken to set the discipline of the internal organization right," adding, "This TFT is not a mere showpiece organization but the starting point of a substantive overhaul to build a global-level internal control system."
He went on, "We are declaring our resolve to respond firmly, in accordance with a zero-tolerance principle, to acts that undermine market order, and we will take the lead in restoring trust in the capital market and enhancing transparency going forward."