Business / Corporate

Japan Post to resume marketing of savings products after suspension due to irregularities

JIJI

Japan Post Co. said Wednesday that it will resume marketing activities for savings products offered by Japan Post Bank Co. on Monday, following a suspension due to sales irregularities involving Japan Post Insurance Co.

Japan Post suspended sales of insurance products from mid-July and marketing activities for all financial products sold at its post offices in August.

The suspension was designed to allow the company to focus on an in-house investigation into inappropriate sales practices by Japan Post Insurance.

Japan Post, Japan Post Bank and Japan Post Insurance are all subsidiaries of Japan Post Holdings Co.

The resumption comes as Japan Post concluded that it could offer savings products as long as there were no problems with customer services at Japan Post Insurance, Japan Post officials said.

Sales of insurance products as well as investment trusts offered by Japan Post Bank will remain suspended.

Improper practices have also been found in the Japan Post group’s sales of investment trusts, including the failure to confirm the health condition of customers age 70 or older.

In October, Japan Post Bank sent letters to some 235,000 elderly customers who had purchased its investment trusts to confirm whether there had been any problems with related procedures.