The largest banking corporation in Japan, Mitsubishi UFJ Financial Corporation (MUFG), revealed that it will be cutting the salaries of its CEO and five other executives due to a breach of “firewall” rules at its banking and securities divisions.
Following the violation of “firewall” restrictions at its banking and securities arms, Mitsubishi UFJ Financial Company (MUFG) (8306.T), the largest banking company in Japan, announced on Friday that it will be slashing the salaries of its CEO and five other executives. In the most prominent financial regulatory action in Japan since rival Sumitomo Mitsui Financial Group’s securities arm (8316.T) was charged with market manipulation in 2022, the Financial Services Agency (FSA) ordered MUFG’s banking and securities units to submit business improvement plans in June. MUFG said in a statement that Group CEO Hironori Kamezawa and the wages of five other executives would be reduced by 30% per month for a period of two to five months.
MUFG said in a statement that Group CEO Hironori Kamezawa and the wages of five other executives would be reduced by 30% per month for a period of two to five months. In addition, it asked that three former directors of the company’s banking division and one of its securities divisions repay 10% to 30% of their salary from the previous three months. According to regulatory documents, Kamezawa received a total of 339 million yen ($2.16 million) in compensation for his roles as group CEO and director at MUFG Bank in the year that ended in March 2024.
The FSA announced in mid-June that it had discovered a minimum of 26 instances when private client data was sent between MUFG Bank and one of the group’s two securities partnerships with Morgan Stanley (MS.N.), opening a new tab between 2020 and 2023. Additionally, it was discovered that MUFG Bank had given customers who dealt with the two brokerages preferential lending rates. According to MUFG, the FSA received a business development plan on Friday.
It is against the law in Japan for banks and securities firms that belong to the same group to share client information with one another without the client’s permission.
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