Japan’s Nomura ends financial adviser era, to move 1,500 jobs

A man walks next to a sign for Nomura Securities in Tokyo July 25, 2013. REUTERS/Yuya Shino

Japan’s Nomura will no longer employ financial advisers in its retail division and plans to move more than 1,500 employees to other roles from April as a result, the investment bank and brokerage told Reuters.

A spokesman confirmed the revamp after two sources told Reuters of the plan, which comes amid a turnaround programme announced last year when Nomura suffered its first annual loss in a decade.

Like Nomura‘s regular sales force, financial advisers sell stocks and bonds to retail investors, but their pay is weighted more towards commission and some high performing advisers can earn more than Nomura branch managers, the sources said.

Nomura introduced financial advisers in 1998, in a first for Japan’s domestic financial services industry.

Although the roles do basically the same job, there was a lack of cooperation because they are independent of each other, the sources who declined to be identified said.

Advisers will now be moved to a regular salary instead of a commission, the sources said. That has sparked some concern that high earners may leave the company, one added.

The Nomura spokesman said the revamp was not aimed at cutting costs, but at increasing customer satisfaction.

Nomura is aiming for about 140 billion yen in cost cuts by March 2022 and says it has achieved about 85% of this as of the end of September.

While its retail division has been a stable earner, revenue has looked weaker in the first half of this fiscal year.

The retail business accounted for 21% of Nomura‘s total revenue in the six-month through September, compared with the wholesale segment which produced 57%.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.