Manulife Gets Biz Improvement Order over "Tax-Saving Insurance"

Economy Politics

Tokyo, July 14 (Jiji Press)--Japan's Financial Services Agency on Thursday issued a business improvement order to Manulife Life Insurance Co. over sales of "tax-saving insurance" plans for small business owners.

It is the first time that the agency has taken administrative action over such insurance plans.

The FSA took issue with the development by the subsidiary of Canada's Manulife Financial Corp. of products with an emphasis on their tax-saving effects, instead of the original intent of insurance.

The agency demanded that the firm submit by August 15 a business improvement plan, including the clarification of management responsibility.

The insurance products in question are designed to allow policyholders to receive refunds in a way that reduces tax payments.

[Copyright The Jiji Press, Ltd.]

Jiji Press