A Japanese regulator is examining if Deutsche Bank AG (DBK) provided entertainment that could be deemed excessive to pension fund executives, Reuters reported, citing unidentified people familiar with the matter.
The Securities and Exchange Surveillance Commission found evidence of potential misconduct during a regular audit of Frankfurt-based Deutsche Bank’s Japanese investment-banking arm, the news agency said, citing the people.
Deutsche Bank started an investigation into the matter before the SESC began its audit in May and the regulator may not enforce sanctions, Reuters reported.
The Deutsche Bank inspection is under way and the SESC can’t comment on the issue, an SESC official said today in Tokyo, asking not to be identified because of the watchdog’s policy. The SESC typically makes recommendations on its findings to Japan’s Financial Services Agency.
Aston Bridgman, a Tokyo-based spokesman for Deutsche Bank declined to comment when contacted by phone today. Companies undergoing inspection are not allowed to do so under the regulator’s policies in Japan.