Japan regulator punishes two regional banks for ‘problematic’ risky bond sales

JAPAN’S Financial Services Agency (FSA) on Friday (Jun 23) said it had imposed business improvement orders on two regional banks for selling high-risk structured bonds without providing sufficient information to customers.

Chiba Bank and Musashino Bank sold structured bonds to inexperienced clients through Chibagin Securities, a Chiba Bank subsidiary, the regulator said, calling these sales “problematic” in terms of investor protection and saying they must be rectified.

Japan’s Securities and Exchange Surveillance Commission financial watchdog advised the FSA this month to reprimand the two regional banks which are headquartered near Tokyo. REUTERS