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

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

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
Information
Practical guide to Japan's 2026 property market — trends, top cities, legal and tax rules, financing options, and risk management for investors.
General
Information
Renovating a home to be more sustainable is a practical and often cost-effective way to reduce your environmental impact while improving your living space. In Japan, where older homes often lack modern energy-efficient features, renovating for sustainability can bring significant long-term benefits
General
"I was distressed both physically and mentally" in the former apartment, which had floor space of 25 sq. meters, she said, explaining why she has relocated to the new apartment, which is roughly twice as big. In the studio, she had no space for a desk despite having to work more from home, and her work and rest time became increasingly difficult to separate. One of her friends became ill due to continuously working from a small apartment, she said. Although the monthly rent for the new apartment is about 20,000 yen ($182) higher, she said, "I feel relaxed here."