(December 5 – 11:40 ET) – According to the Financial Times, investigators from Japan’s Securities and Exchange Surveillance Commission are scrutinizing the securities operations of several foreign brokerage firms, including CIBC World Markets.

FT says the Japanese regulator is looking at CIBC along with UBS Warburg and Credit Suisse First Boston as part of a push to improve standards among foreign investment banks doing business in Japan. According to the newspaper, the banks said the SESC inspections are routine and not based on prior evidence of any trouble at these firms.

According to FT this latest probe is just the most recent in a string of stepped up activities by Japanese regulators. Japan’s Financial Supervisory Agency is also inspecting UBS Warburg.

As well, the SESC was recently summoned to look at Goldman Sachs’ trading in NTT shares. Credit Suisse’s derivatives unit was closed last year after the FSA discovered problems. The FSA has also conducted inspections of several other banks and reprimanded Lehman Brothers and WestLB.

The FSA has indicated that it hopes to inspect all the foreign banks over the next couple of years, and has sharply increased its number of inspectors to do this in recent months.
-IE Staff