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Screenshot of a breaking news alert e-mail from Q2 2017
Japan’s Financial Services Agency (FSA) has once again shown that it is a strict regulator, as it presented kabu.com, a retail FX subsidiary of Mitsubishi UFJ Financial Group Inc (TYO:8306), with a business improvement order.
The latter is in itself a set of measures that the company has to implement to solve the problems the watchdog has identified. In the case of kabu.com, all of the issues concern the risk management procedures and systems.
The order stipulates that the company has until June 25, 2015, to present the regulator with a report on the measures taken to resolve the issues. This includes identification of all past problems related to risk management within the broker, as well as taking steps to improve the situation.
Although the business improvement order is a form of a regulatory sanction in Japan, it does not normally go along with financial penalties. Usually the authorities allow the company to tackle the problem by itself first.
To view the official announcement of the business improvement order for kabu.com, click here.