MUFG Employee Suspected of Insider Information Leak
An employee of MUFG Bank, a unit of Mitsubishi UFJ Financial Group Inc., is under investigation for allegedly leaking tender offer details and other non-public information about client companies to family members, potentially earning several million yen from these trades. This incident has led Japan's Securities and Exchange Surveillance Commission (SESC) to conduct a search of the employee's home as part of a broader probe into the matter.
The investigation follows recent reprimands and penalties against MUFG Bank for breaching firewalls and violating client confidentiality rules. The alleged insider trading has significantly impacted the bank's reputation, causing some clients to move their bond underwriting business elsewhere. The SESC suspects the employee repeatedly shared non-public information about potential takeover bids by the bank's clients, resulting in illicit profits for the relatives involved. The Financial Services Agency has also ordered the bank and its related entities to improve their operations following the breaches.
