Japan Pursues Deutsche Bank for Excessive Gifts to Pension Funds

Japan’s Securities and Exchange Surveillance Commission (SESC) has recommended that the prime minister and the commissioner of the Financial Services Agency (FSA) take administrative action against Deutsche Bank in Japan for providing excessive gifts to pension fund clients.
By Jake Safane(2147484770)
Japan’s Securities and Exchange Surveillance Commission (SESC) has recommended that the prime minister and the commissioner of the Financial Services Agency (FSA) take administrative action against Deutsche Bank in Japan for providing excessive gifts to pension fund clients.

The SESC says that the pension solution department of Deutsche Securities Japan “had provided officers of three employees’ pension funds with substantial benefits through gifts and entertainment with regard to contracts for financial instruments transactions.”

Ranging from June 2010 through December 2012, Deutsche allegedly provided three funds, though during slightly different time frames, a combined 6.27 million yen worth of benefits in order to sell index-linked bonds to the funds. For one fund, the SESC says Deutsche paid for an overseas trip for fund officers and provided entertainment approximately forty times. The SESC also says the bank did the same for another fund, paying for an overseas trip and provided entertainment approximately 30 times, and for the last fund, the SESC says Deutsche also provided entertainment approximately 30 times.

The SESC says that these acts—providing substantial benefits in order to obtain contracts for financial instruments—violates Japan’s Financial Instruments and Exchange Act.

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