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