Japan’s Mitsubishi UFJ Financial Group (MUFG) will cut executive pay after breaching “firewall” regulations, with the Financial Services Agency (FSA) demanding business improvement plans.
Bollywood Fever: Japan’s largest banking group, Mitsubishi UFJ Financial Group, announced on Friday that it will cut the pay of six executives following the breaching of “firewall” regulations at its banking and securities arms.
In June, the Financial Services Agency (FSA) ordered MUFG’s banking and securities units to submit business improvement plans. This directive represents the most high-profile financial regulatory action in Japan since the securities arm of rival Sumitomo Mitsui Financial Group faced market manipulation charges in 2022.
Group CEO Hironori Kamezawa and five other executives will see their monthly salaries reduced by 30% for periods ranging between two and five months, according to MUFG’s statement. Additionally, four former directors at the group’s banking unit and one of its securities arms are required to return between 10% and 30% of three months’ worth of salary.
The FSA’s mid-June investigation revealed at least 26 instances of confidential client information being shared between MUFG Bank and one of the group’s two securities tie-ups with Morgan Stanley from 2020 to 2023.
This breach of “firewall” regulations, which are designed to prevent conflicts of interest and protect client information, has prompted the FSA to take stringent actions to ensure compliance and improve operational integrity within MUFG.
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