The Hong Kong Securities and Futures Commission fined Nomura International (Hong Kong Limited) HK $4.5 million (approximately US $580,000) for failing to disclose “significant misconduct” by an employee seconded from an affiliate. On June 11, 2013, Nomura disclosed to SFC that the trader had sustained a US $3.3 million trading loss and had been returned to the affiliate earlier in the month. However, at the time of the disclosure, Nomura already had allegedly detected discrepancies between the trader’s actual trading activities and the information he had provided to management. Among other matters, the trader had admitted to Nomura, charged the SFC, that “he had made manual adjustments in Nomura’s Hong Kong’s risk management system [on two days] to avoid showing the real level of loss of risk exposure from his trading activities on those days.” Subsequently, claimed SFC, Nomura further investigated the matter, and prepared an internal draft report of the trader’s activities by June 19. Nomura did not disclose the trader’s inappropriate conduct to the SFC until July 17 and only provided the draft report two days later. According to SFC, “Nomura … and other intermediaries, have a duty to report misconduct and suspected misconduct to the SFC immediately upon discovery, not when they have completed their own internal investigations into the matter.”