Japan Orders Compliance Improvements at MUFG Bank and Its Morgan Stanley Securities Partnerships
mufg

Japan’s banking regulator ordered the banking and securities units of Mitsubishi UFJ Financial Group (MUFG) to improve compliance measures after the securities watchdog found multiple breaches of “firewall” regulations.

The penalties come less than two years after the securities arm of rival megabank Sumitomo Mitsui Financial Group was indicted on market manipulation charges, for which it was ordered to halt the offending business line and improve compliance.

The Financial Services Agency, which hands out such penalties, ordered each of the MUFG units to establish the causes of the breaches and submit business improvement plans to prevent recurrences.

The Securities and Exchange Surveillance Commission recommended in mid-June that MUFG Bank and the group’s two securities tie-ups with Morgan Stanley be penalised for the unauthorised sharing of client information.

Its investigation found at least 26 occasions where confidential information had been shared between MUFG Bank and one of the group’s two securities firms – Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities.

It also found that MUFG Bank had offered preferential lending rates to clients that did business with the two securities brokerages.

Japan’s “firewall” regulations prohibit banks and securities companies in the same group from sharing customer data with one another without the customer’s consent.

MUFG said in a statement that it fully accepted the penalties and planned to submit the business improvement plans to the FSA.

Related Articles

General
Information, News
Japan's new prime minister on Sunday said the planned mass disposal of wastewater stored at the tsunami-wrecked Fukushima nuclear plant cannot be delayed, despite concerns from local residents.
General
News
Japan on Wednesday opened its borders to foreign travelers on unguided tours, or what travel agencies are calling self-guided tours, which can be booked by registered travel agencies — a move that may be welcomed by some foreign visitors since the nation opened its doors to escorted tours in June. The country also raised the daily arrival cap, or the number of all arrivals to Japan per day, to 50,000 and dropped a pre-arrival test requirement for those who have been vaccinated with three shots of a coronavirus vaccine. Despite the moves, Japan’s border measures are still conservative compared with other major economies, including the U.K. and France, where restrictions on international travel have been lifted entirely.
Investors/Business
Information, News
Azabudai Hills, Tokyo's newest redevelopment, aims to transform the cityscape into an international destination. With over $4 billion investment, it offers modern residential, official, and commercial spaces, including amenities like an international school and venture capital hub. This project, crafted by renowned architect Thomas Heatherwick, integrates green spaces and promises to elevate Tokyo's status.
General, Investors/Business
News
Japan’s work culture is in many ways a legacy of decades past, a time when most women got married, quit their jobs and raised a family, while their husbands became the sole breadwinner with long work hours. Unfortunately, raising a family and caring for elderly family members has stereotyped women as the lesser valued gender in the eyes of an employer. The coronavirus is giving this inequality a shake-up...