NH Investment & Securities has decided to impose a blanket ban on domestic trading of listed shares by all in-house executives.
The internal control reinforcement task force (TFT) at NH Investment & Securities said on the 4th that it made the decision as part of efforts to strengthen internal controls and ethical management.
The internal control reinforcement TFT aims to strengthen the ethical management system by having executives engage in self-reflection in connection with recent allegations of private use of nonpublic information by an executive. The purchase ban applies to domestic listed shares; overseas stocks and exchange-traded funds (ETF) can be purchased. The sale of existing shares is also allowed.
The company said the decision will strengthen the accountability and transparency of management and key decision-makers, proactively block risks, and prevent the company's legal and reputational risks. The trading restrictions will take effect starting on the 6th.
Earlier, the joint response team to eradicate stock price manipulation conducted a search and seizure on the 28th of last month targeting an investment banking (IB) executive at NH Investment & Securities suspected of using nonpublic information. In response, NH Investment & Securities on the 30th of the same month removed the executive under investigation by the joint response team from the person's duties and established the internal control reinforcement TFT.
At a full executives' meeting held this morning, about 50 members of management and executives attended, shared the gravity of the incident, and took time to reflect on their responsibility. NH Investment & Securities said that at the meeting it pledged to internalize ethical management by raising employees' ethical awareness and strengthening compliance management, recognized the importance of sound ethics and responsible behavior, and resolved to take the lead in building a transparent capital market.
President Yun Byeong-un said, "Executives will take the lead and set an example, and we will turn this crisis into an opportunity for a fresh start by internalizing ethical management," adding, "We will make this a fundamental turning point toward ethical management, and all members of NH Investment & Securities will move forward with renewed determination."