TOKYO: Japan's largest banking group Mitsubishi UFJ Financial Group (MUFG) will cut the pay of six executives following the breaching of "firewall" regulations at its banking and securities arms, it said on Friday.
In June, the Financial Services Agency (FSA) ordered MUFG's banking and securities units to submit business improvement plans in the most high profile financial regulatory action in Japan since the securities arm of rival Sumitomo Mitsui Financial Group was indicted on market manipulation charges in 2022.
The monthly salaries of Group CEO Hironori Kamezawa and five other executives will be cut by 30% for between two and five months, MUFG said in a statement.
It also demanded that four former directors at the group's banking unit and one of its securities arms return between 10% and 30% of three months worth of salary.
In mid-June, the FSA said it had found at least 26 cases in which confidential client information had been shared between MUFG Bank and one of the group's two securities tie-ups with Morgan Stanley between 2020 and 2023. (Reporting by Anton Bridge; Editing by Christopher Cushing and Christian Schmollinger)