FSA to Punish Japan Post Group by Year-End
Tokyo, Dec. 13 (Jiji Press)--Japan's Financial Services Agency is expected to slap administrative penalties on the Japan Post Holdings Co. <6178> group by the end of this month over inappropriate insurance sales practices by Japan Post Insurance Co. <7181> and Japan Post Co., it was learned Friday.
On the day, the FSA informed the Japan Post Holdings units of the results of its on-site inspections and urged them to report on the problem, according to sources familiar with the situation.
Japan Post Insurance and Japan Post Co. are expected to release reports on their in-house investigations shortly. Based on the reports, the FSA will announce punishments on the two firms toward preventing any recurrence of the wrongdoing and clarifying their management responsibility.
The insurance sales irregularities by the two firms are seen to have placed policyholders to a disadvantage in some 183,000 contracts. Insurance business law violations are suspected for 1,400 of them. Some 26,000 policyholders are seeking refunds of overpaid insurance premiums or calling for other measures to be taken to address the disadvantage.
Japan Post Insurance and Japan Post Co. have refrained from insurance marketing activities. On top of the in-house probes, a special investigation committee comprising external lawyers, set up by the parent holding company and the two units, is investigating the case.
[Copyright The Jiji Press, Ltd.]