Panel Finds No Problem in Sales of Japan Post Insurance Shares
Tokyo, March 27 (Jiji Press)--Japan Post Holdings Co.'s <6178> sales of shares in subsidiary Japan Post Insurance Co. <7181> last year did not violate regulations of the Tokyo Stock Exchange, a third-party panel probing the group's improper sales practices for the unit's Kampo brand products has said in an additional report.
While Japan Post Holdings was partially aware of the inappropriate insurance sales practices as of April 2019, when the second round of sales of shares in the insurance firm by the parent company took place, the group "did not recognize that something that could considerably influence investor's decisions was occurring," said the panel, comprising outside lawyers.
The additional investigation report, released on Thursday, pointed out that the sales irregularities started before the launch of the privatization process for the postal service group and that a lack of awareness for customer-oriented service in its management team was to blame for the delay in responses to the issue.
"The core of the problem lies in the fact that the group was in a situation in which it was difficult (for its executives) to grasp the reality" of the improper sales practices, lawyer Tetsuo Ito, who heads the panel, said at a press conference.
The delay in full-fledged investigations for the scandal does not amount to a breach of the duty of care on the part of the executives, he added.
[Copyright The Jiji Press, Ltd.]