Managers of Mitsubishi’s Kabu.com accept pay cuts after regulatory sanctions

It was a month ago that LeapRate has reported that Kabu.com, a retail FX subsidiary of Mitsubishi UFJ Financial Group Inc (TYO:8306), got a business improvement order from Japan’s Financial Services Agency.

The Japanese regulator then reprimanded the company for problems with risk management systems and procedures, giving it a month to take the necessary steps to tackle the problems identified.

As the deadline passed, Kabu.com has published a report concerning the measures implemented in response to the sanctions.

Six senior managers of the companies are accepting pay cuts, ranging from 10% to 30% of their salaries for a period of one month to three months. Kabu.com’s president and CEO will see his pay reduced by 30% for a period of three months, whereas the chairman of the corporate board will see his pay cut by 25% for a month.

The FX broker also established extra controls and even new divisions to be responsible for risk management, business management and development, as well as human resources management.

To view the official announcement by Kabu.com, click here.

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