MUFG Bank, Ltd confirmed today that administrative action has been taken by the Financial Services Agency (FSA) of Japan.
On June 14, Japan’s Securities and Exchange Commission announced that it had recommended to the Prime Minister and the Commissioner of the Financial Services Agency (FSA) to take administrative action against MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) on the basis that there was improper exchange of customer information, improper solicitation in violation of the prohibition of taking securities services by a registered financial institution, etc., in the management of corporate information in cooperative banking activities between MUFG Bank and MUMSS.
Today, the FSA announced that it has issued business improvement orders to MUFG Bank and MUMSS under section 51(2) and section 51 of the Financial Instruments and Exchange Act, and reporting orders to MUFG and MUFG Bank under with article 52, paragraph 31 -1 and article 24, paragraph 1, of the Banking Law.
In response, companies are considering using training and study sessions to thoroughly disseminate information internally as soon as possible, formulating and disseminating procedures and rules tailored to actual cases and conditions in the short term, and will strengthen monitoring systems, including systems development. medium to long term.
MUFG, MUFG Bank and MUMSS plan to submit business improvement plans and reports relating to this matter to the FSA based on these business improvement orders and reporting orders.
MUFG Bank will clarify where responsibility, including management, lies in light of these administrative actions. Will promptly develop and consistently implement an effective business improvement plan based on root cause analysis of these incidents.
MUMSS will also develop and implement in a timely manner an effective business improvement plan based on root cause analysis of these incidents to prevent recurrence.
MUFG will confirm the facts of the recognized incidents in the MUFG Bank MUFG subsidiary related to the prohibition of other activity as defined in Article 12 of the Banking Act and the management of customer information as defined in Article 12, paragraphs 2-2 of the Banking Act Act, analyze their causes (including root causes) as the parent company of MUFG Bank and identify issues based on these analyses.