Reported 10 months ago
Japan's Financial Services Agency plans to penalize a Mitsubishi UFJ Financial Group Inc. unit and two joint ventures for breaching client confidentiality rules. The expected penalty includes business improvement orders issued on MUFG Bank Ltd., Morgan Stanley MUFG Securities Co., and Mitsubishi UFJ Morgan Stanley Securities Co., following a recommendation by Japan's securities watchdog. The breach involved the exchange of client information between the firms in order to win business, prompting concerns about potential abuse of bargaining positions by banks. The banking industry has advocated for a relaxation of the rule prohibiting commercial and investment banking arms of the same financial group from sharing client data, while critics argue that such a move could lead to banks coercively winning businesses from borrowing clients due to their lending position.
Source: YAHOO