(Update) 3 MUFG Affiliates Get Biz Improvement Orders

   Tokyo, June 24 (Jiji Press)--Japan's Financial Services Agency issued business improvement orders to three companies under the wing of Mitsubishi UFJ Financial Group Inc. on Monday for illegally sharing information about customers without their consent.
   The orders were slapped on MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities Co. and Morgan Stanley MUFG Securities Co. based on the financial instruments and exchange law. On June 14, the Securities and Exchange Surveillance Commission asked the FSA to impose administrative penalties on the three MUFG affiliates.
   Specifically, they were ordered to clarify who was responsible for the misconduct, including the possibility of their management teams being to blame, and submit by July 24 improvement measures, such as the strengthening of legal compliance to prevent recurrences.
   In addition, the FSA ordered the parent holding company and MUFG Bank to submit reports, based on the banking business law, on their analysis of the cause of the problem and on improvement measures, concluding that their management supervisory systems were inadequate.
   The financial instruments and exchange law prohibits banks and securities firms within the same group from sharing undisclosed information about customers without obtaining their permission, a rule known as firewall regulation.

(2024/06/24-18:31)

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