Japan Watchdog Seeks Penalty On Regional Banks Over Bond Sales
Fumio Kishida
Photographer: Kimimasa Mayama/EPA/Bloomberg
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Japan’s securities watchdog is seeking penalties on two regional banks for improperly selling structured bonds, a rare move that could send a signal to the broader industry about its sales practices.
The Securities and Exchange Surveillance Commission on Friday asked the Financial Services Agency to punish Chiba Bank Ltd. and its brokerage subsidiary, as well as Musashino Bank Ltd. The agency said they sold these products without properly checking customers’ investment preference and experience, or explaining the risks involved.