Japan Post Bank improperly sold investment trust products to elderly customers in violation of its rules in a total of some 20,000 cases, sources have revealed.
An investigation by the unit of Japan Post Holdings Co. newly identified some 2,000 cases of improper sales of investment trust at 200 post offices, the sources said.
Japan Post Co., another unit, sells investment trusts at some 1,500 post offices under an outsourcing agreement with Japan Post Bank.
Most contracts were conducted in fiscal 2018, which ended March 31.
By June, 18,000 cases of improper sales had been identified at 90 percent of some 230 Japan Post Bank outlets.
The investigation found that investment trusts were sold to elderly customers without confirming whether they fully understood the terms of the financial products, the sources said.
Across the whole Japan Post group, some 183,000 cases of improper insurance product sales had previously been found.
The Financial Services Agency is now investigating the Japan Post group’s sales practices and internal controls, while considering administrative reprimands.
IN FIVE EASY PIECES WITH TAKE 5