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Fiduciary Duties(details of The Bank of Tokyo-Mitsubishi UFJ' initiatives)

Mitsubishi UFJ Financial Group (MUFG) has formulated and announced new window"MUFG Basic Policy for Fiduciary Duties" as a common guideline of the Group so as to enforce its customer-first undertakings.
The Bank of Tokyo-Mitsubishi UFJ is, in addition to adopting the "Principles for Customer-Oriented Business Conduct" established by the FSA in March 2017, carrying out the following initiatives under this basic policy. Also, for specific indicators of progress (KPI) toward implementing customer-first business operations, please refer to new window"Status of The Bank of Tokyo-Mitsubishi UFJ' initiatives."PDF

Enforcement of customer-first undertakings

The Bank of Tokyo-Mitsubishi UFJ (BTMU) seeks to enforce, through training etc., judgment and behaviors among its employees based on the Principles of Ethics and Conduct and the MUFG Basic Policy for Fiduciary Duties. In addition, we will strive to improve customer satisfaction by gathering feedback from customers and implementing various measures based on their views in order to achieve the greatest benefits for customers.

Implementing customer-first consulting and provision of information

(1) Implementing customer-first consulting and provision of information

In proposing products, BTMU selects products based on customers' knowledge, experience, financial circumstances and transaction purposes. It strives to propose products that match customers' needs based on their life stages and attributes. Particularly with elderly customers and customers with limited investment knowledge and experience it seeks to propose products with low risk.

BTMU will provide timely and adequate follow-up services including providing customers with a market outlook, status of investments and other information needed for their investment judgment in such events where the market fluctuates significantly.

(2) Providing detailed information tailored to customers' level of understanding

In proposing products, BTMU strives to explain the products' characteristics, risks and fees as well as market trends with easy-to-understand expressions and important information highlighted by such means as larger text and coloring and thereby to provide necessary and sufficient information. Moreover, BTMU utilizes tablet terminals and other devices to provide its customers with easy-to-understand information – explaining returns, losses and other risks, transaction terms and conditions with simulations, graphic charts and other tools.

In proposing products, BTMU seeks to make even better proposals through dialogues with its customers including presenting model portfolios and performance simulations on tablet terminals and other devices based on asking questions about their investment intensions.

BTMU has built a system where products involving complexity or high risks are explained even more carefully including only by highly-skilled personnel in charge. On the other hand, BTMU applies a simple procedure to the sale of JGBs with limited risks to individual investors, including providing concise information.

(3) Improvement of transparency of fees so as to contribute to customers' investment judgment

BTMU will seek to enhance transparency of fees for each product and provide in-depth explanations so as to contribute to customers' investment judgment. In addition, regarding fees on insurance sales, we have since October 2016 been disclosing handling fees for specified insurance contracts.

(4) Developing a performance evaluation system that reflects customer-first undertakings

BTMU has introduced a performance evaluation system comprehensively evaluating sales activities that contribute to customers' benefits and needs without placing an excessive emphasis on the sales of certain investment products. Furthermore, it will develop a system to pursue its customers' best interest from a long-term perspective, including introducing a longer performance evaluation period and a performance evaluation system that assesses such factors as expanded customer base and continuously accumulated deposit balance in a well-balanced manner.

(5) Initiatives of investment education

BTMU provides information when necessary including presenting investment awareness raising brochures to its customers and regularly holding seminars for customers.

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Provision of line of products to meet diverse needs

(1) Provision of line of products to meet diverse needs

BTMU will offer a diverse and high quality line of products that enables customers to select appropriate products according to their investment objectives and risk tolerances.

We will offer a product lineup including products with low risks or low fees so as to allow as many customers as possible including those with little investment experiences to utilize its services. It also seeks to improve convenience in the utilization of online transactions and periodic investment plans and thereby to allow customers of broad age groups to use its services.

(2) Selection of products that contribute to customers' asset building and provision of sales procedures

BTMU will select products and services that contribute to customers' benefits from among many product designs proposed by a variety of investment management firms, insurance companies etc. while utilizing evaluations by external assessment agencies where necessary. When selecting and selling products we strive to implement the following undertakings not to give priority to the products of our business affiliated companies and not to recommend only products that generate high fees on sales.

At the time of selecting products

The products we handle are selected from among the same types of products taking into account the "selection points" noted below.

< Selection points >

(1) Risks of products

(2) Expenses

(3) Performance

(4) The needs of the anticipated sales customers, appropriateness, and compatibility with the investment environment

(5) The complexity of the product structure, the level of difficulty in explaining products, and sales channels

(6) Structures for training and support for the executives and employees of sales companies by investment management firms

(7) Conformity with related laws and regulations

Consideration might result in selecting a product offered by our business affiliated companies.

At the time of sale

We do not provide excessive incentives for handling products of our business affiliated companies in order to ensure that we propose to customers optimal products for their needs. In addition, in our performance evaluations of sales staff we do not give preference to sales of products of our business affiliated companies over those of non-business affiliated companies. Furthermore, the second line of defense, in order to maintain appropriate proposals activities for customers, undertakes periodic inspections to ensure that preference is not given to sales of products that generate high fees.

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Provision of financial services leveraging the Group's consolidates strength

BTMU strives to leverage the consolidated strength of Group companies including Mitsubishi UFJ Trust & Banking and Mitsubishi UFJ Morgan Stanley Securities to meet customers' diverse needs-, and to make proposals based on the act of constantly confirming customers' intentions to satisfy their changing needs.

BTMU makes comprehensive proposals not only on investment products but on lending and support for inheritance and succession according to customers' life cycles and needs.

Establishment of a structure enabling comfortable, secure and safe transactions

BTMU seeks to improve customers' convenience based on the notion of "open innovation" by proactively utilizing technologies and ideas that it acquires from Japan and other countries in cooperation with external companies and research institutions, including the introduction of new additional services and functions provided through digital channels.

BTMU strives to further improve customers' convenience as well as its proposals by utilizing tablet terminals and other devices for simplified procedure and accelerated responses.

BTMU, day by day, improves the security of its online banking system to enable customers to complete transactions through the internet with a sense of security.

Exertion of professionalism

BTMU seeks to strengthen its staff's knowledge and skills in relation to products and investment environment including providing them with training and encouraging them to obtain external specialized qualifications and thereby to enhance their expertise as professionals. Furthermore, it seeks to improve quality of its directors and employees by, in the case of those who visit individual customers, encouraging them to obtain financial planner (FP) and other external qualifications and to enhance their knowledge and skills relating to products and investment environment by providing them with diverse forms of training according to their experience and organizational positions.

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