Japan Brokerage Lobby Says Scandals Show Sector May Be Too Lax

The head of a body representing Japanese brokerages warned Nomura Holdings Inc. and other member companies against complacency, saying a slew of scandals this year could shake public confidence in the industry.

“Those acts have raised questions whether there was a sense of arrogance or laxness or naive thinking among some people,” said Toshio Morita, chairman of Japan Securities Dealers Association. “They can undermine trust in our business.”