Annual report 2022
Annual report 2022
Remuneration disclosures from 2017 onwards are included within Pillar 3.
SMBC Group is committed to preventing bribery and corruption in accordance with applicable anti-bribery legislation in all markets and jurisdictions in which it operates. This includes, but is not limited to, full compliance with the UK Bribery Act 2010. The SMBC BI, SMBC DP and SMBC Nikko statement of anti-bribery principles sets out the requirements for employees and third parties in relation to bribery and corruption and ethical conduct.
Foreign exchange (FX) currency remittance rates are published at the start of each business day for customers to determine the conversion rate applied for low value remittances.
The wholesale FX disclosure sets out the main terms of SMBC Group for FX dealing with its customers and other market participants in principal-to-principal transactions, whether by voice or electronic means, in the wholesale FX markets with respect to FX spot, options, swaps and deliverable and non-deliverable forwards.
SMBC BI acknowledges that the FX Global Code represents a set of principles generally recognised as good practice in the wholesale foreign exchange market. As a market participant, SMBC BI is committed to conducting its activities in a manner consistent with the principles of the code.
The United Kingdom Money Markets Code represents a set of principles generally recognised as good market practice in the UK money markets. As a market participant, SMBC BI is committed to conducting its activities in a manner consistent with the principles of the code.
SMBC Group is an equal opportunites employer. See diversity and inclusion for more information.
Disclosure of inactive bank accounts in relation to French law number 2014-617 of 13 June 2014, known as Eckert law.
En français (in French)
SMBC Group has submitted applications to the relevant European Union regulators in respect of the exemption from margin requirements for intragroup transactions under Article 11 of European Market Infrastructure Regulation (EMIR) and Commission Delegated Regulation (EU) 2016/2251 supplementing EMIR with regard to regulatory technical standards on risk mitigation techniques for over-the-counter (OTC) derivative contracts not cleared by a central counterparty. The exemptions apply to initial and variation margin requirements.
Within the past year, SMBC Nikko has managed or co-managed a public or private offering for the companies listed in the co-lead report for which it received fees.
The Wolfsberg Group is an association of 13 global banks which aims to develop frameworks and guidance for the management of financial crime risks. The Wolfsberg questionnaire has been developed in order to assist firms conducting due diligence, allowing them to assess the financial crime risk consistently across the financial industry. In line with industry best practice, SMBC BI, SMBC EU and SMBC Nikko have completed the questionnaire as an aid to the due diligence process.
In accordance with pensions regulation, the trustees of the Sumitomo Mitsui Banking Corporation Europe Limited Pension Scheme (defined contribution) have prepared statements covering a number of important areas for its members. The reports are signed by the chair of trustees and have been prepared to demonstrate how the trustees of the board have complied with statutory governance regulation, which is key to the running of our defined contribution section of this scheme.
The Modern Slavery Act 2015 ("the Act") of the United Kingdom requires certain businesses to provide disclosure concerning their efforts to address the issues of slavery and human trafficking in their supply chain. The disclosure is intended to assist customers with the ability to make better, more informed choices about the products and services they buy and the companies they support.
Slavery and human trafficking refers to a variety of offences, including but not limited to:
SMBC BI, SMBCL and SMBC Nikko UK (collectively referred to as SMBC UK entities) adhere to the SMBC Group commitments to corporate social responsibility (CSR), and the SMBC Group policy statement on human rights. SMBC Group stipulates its commitment to respecting human rights, and aims to eliminate all forms of exploitative labour practices in their business and supply chains.
The main principle guiding SMBC UK entities' approach to slavery and human trafficking is that they should not be involved, directly or indirectly, in the commission or facilitation of the offences specified by the act.
SMBC UK entities demonstrate an ongoing commitment to maintaining and improving systems and processes to mitigate the risk that they might be involved, wittingly or unwittingly, in the commission of slavery and human trafficking in any part of their operations, supply chain (including customers, contractors and suppliers), products, services and staff activities.
SMBC UK entities also expects their staff, suppliers and business partners to adhere to the same high standards and to take reasonable steps to ensure that other third parties they do business with adhere to those standards as well.
SMBC UK entities' senior management are responsible for establishing a culture in which modern slavery is not tolerated in any form, ensuring that all staff are aware of the risks, so that informed decisions are made in a timely way, which mitigate and manage these risks.
SMBC UK entities have established an anti-slavery policy, which sets out the processes through which they seek reasonable assurance that none of their customers, business partners, suppliers and other third parties are involved in the commission or facilitation of slavery or human trafficking.
SMBC UK entities have conducted a risk assessment of countries, industry sectors, goods and products, which have been reported to be involved in the potential commission or facilitation of slavery and human trafficking. Specifically, the assessment of goods and industry sectors has been updated in line with the United States Department of Labor – Bureau of International Labor Affairs (ILAB) list of goods produced by child labour or forced labour.
All departments involved in due diligence processes are required to conduct appropriate checks in order to obtain reasonable assurance that customers, business partners, suppliers, and other third parties are not involved in the commission or facilitation of slavery and human trafficking.
SMBC UK entities require specific anti-slavery due diligence to be undertaken on all their counterparties, and apply consistent due diligence measures for slavery and human trafficking, whereby suppliers, contractors, customers and any other business partners are all subject to the same level of identification, verification, and risk evaluation.
In addition, in the course of conducting due diligence processes, all customers, business partners, suppliers and other third parties are subject to adverse news screening, incorporating specific terms relevant to slavery and human trafficking.
SMBC UK entities expect their suppliers and customers to undertake ethical business practices, particularly in, but not limited to, economic sectors where there are higher risks of slavery and human trafficking.
SMBC UK entities take appropriate steps to mitigate the risk that slavery and human trafficking may occur in their supply chain, or that their products and services may be used by a customer for the commission or facilitation of slavery and human trafficking.
SMBC UK entities have further enhanced these steps by producing detailed guidance, which provides information on equivalent CSR and environmental, social and governance (ESG) policies, as well as countries, industry sectors, goods and products identified as having a higher risk of slavery and human trafficking.
Furthermore, in relation to trade finance business, controls have been established to mitigate the risk of the possible commission or facilitation of slavery and human trafficking. All trade finance transactions are subject to checks to obtain reasonable assurance that the goods have not been produced by forced, trafficked or child labour. Additional checks are undertaken where the industry sector or country of origin are known to allow, tolerate or encourage forced, trafficked or child labour.
In order to ensure proper understanding of the risks posed by slavery and human trafficking in the context of SMBC UK entities' supply chains and business, training is provided to staff on slavery and human trafficking and the requirements of the Act.
Members of staff are encouraged to report any instances of suspected slavery and human trafficking identified in any part of SMBC UK entities' business activities. The options for raising concerns and reporting are incorporated within the 'Speak Up' framework, including internal reporting lines, and whistleblowing programme.
It is equally important for SMBC UK entities to demonstrate that no relevant offences are committed within their premises or in relation to their own employees. Human resources have the responsibility to demonstrate, through the introduction of appropriate controls, that SMBC UK entities' own employees are being treated in line with local laws and regulations, and are not victim of any of the relevant offences as a result of their employment.
Questions, comments and requests regarding this statement are welcomed and should be addressed to firstname.lastname@example.org
The British government introduced legislation in 2016 which requires large businesses operating in the United Kingdom to publish their tax strategy. The tax affairs of SMBC Group in the UK are managed in a manner that is consistent with the bank’s philosophy on corporate social responsibility.
The information contained in this certification is sought pursuant to sections 5318(j)(k) of title 31 of the United States code, as added by sections 313 and 319(b) of the USA Patriot Act 2001 (public law 107-56).
The US Foreign Account Tax Compliance Act (Fatca) certificate of status of beneficial owner for United States tax withholding and reporting entities.
SMBC Group understands the complexities of the exemption from the Volcker Rule’s proprietary trading provisions for transactions outside of the United States – known as the Totus exemption – and appreciate your work in ensuring that our trading relationship with you is not disrupted. SMBC Nikko is a foreign banking organisation established in England and Wales and is not a US entity for purposes of the Volcker Rule. Please note that as we cannot provide you with legal advice we encourage you to speak to your own counsel about your understanding of the Totus exception.