NH Investment & Securities said on the 20th it will implement stronger internal controls that include all executives' family accounts in its monitoring scope. The move aims to preemptively block potential unfair trading and enhance accountability and transparency among management.
Until now, NH Investment & Securities had registered and managed only the family accounts of employees in departments with a high potential for conflicts of interest, such as the investment banking division. However, with this measure, the management scope will be expanded to all executives' family accounts, and in the second half, the company also plans to conduct sampling inspections of the reported accounts.
The implementation plan is part of trust-building measures drawn up by the task force team (TFT) for strengthening internal controls launched in November last year.
Expanding monitoring to all executives reflects the intent to apply stricter internal control standards starting with management, the main decision-makers. The company said it aims to preemptively block legal and reputational risks related to unfair trading and bolster trust from the market and customers.
The NH Investment & Securities internal control reinforcement TFT has already implemented strong trust-restoration steps, including announcing trust-building measures. In particular, it strengthened its control framework for material nonpublic information by introducing a "project participation management system" to register and manage, companywide, employees who handle or can access material nonpublic information.
Yoon Byung-woon, president of NH Investment & Securities, said, "It means we will clearly reflect across management the principle that customers' interests come before those of the company and employees," adding, "We will continue to strengthen our ethical and responsible management framework centered on the internal control TFT."