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Fiduciary Duties(details of MUFG Bank 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.
MUFG Bank 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 MUFG Bank initiatives (as of end-Mar. 2018)."PDF

Ensuring customer-oriented approach

MUFG Bank seeks to ensure judgment and behaviors among its employees based on “Principles of Ethics and Conduct” and “MUFG Basic Policy for Fiduciary Duties” through training programs. In addition, MUFG Bank will strive to improve customer satisfaction by gathering feedback from customers and undertaking various initiatives in light of their views for in the best interest of customers.

Implementing customer-oriented provision of information and consultation

(1) Implementing customer-oriented provision of information and consultation

When proposing products, MUFG Bank selects products based on customers’ knowledge, experience, financial circumstances and transaction purposes. MUFG Bank strives to propose products that fulfill customers’ needs based on their life stages and attributes. Particularly with elderly customers and customers with limited investment knowledge and experience, MUFG Bank will propose products with lower risks.

MUFG Bank 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 decisions in case of considerable market fluctuations.

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

Upon proposing products, MUFG Bank makes efforts to explain the characteristics, risks and fees of the products as well as market trends in easy-to-understand expressions and important information highlighted by such means as larger text and coloring, thereby providing necessary and sufficient information. Moreover, MUFG Bank utilizes tablet terminals and other devices to provide its customers with easy-to-understand information – explaining returns, losses and other risks, terms and conditions of transactions with simulations, graphic charts and other tools. In addition, by way of showing the customers “Selection of Investment Trust Products” that introduces leading products by asset and region in order to facilitate their choice of products, MUFG Bank will seek to be of service to them to select the funds suited for their purpose and experience of investment and risk tolerance.

When proposing products, MUFG Bank 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 their investment goals.

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

(3) Greater transparency in fees to contribute to customers’ investment decisions

MUFG Bank adopts an approach to increase transparency in fees for each product and provide in-depth explanations to contribute to customers’ investment decisions.

(4) Developing a performance evaluation system that suits customer-oriented approaches

MUFG Bank has introduced a performance evaluation system for comprehensive evaluation of sales activities that contributes to customers’ benefits and needs without inclining to sales of specific investment products. Furthermore, MUFG Bank will develop a system to serve in the best interests of its customers from a long-term perspective, including extending a period for performance evaluation and adopting a performance evaluation system that assesses such factors as expanded customer base and continuously accumulated deposit balance in a well-balanced manner.

(5) Approach to investment education

In order to provide the customers and the younger generation who will newly start asset building with necessary information that contributes to broaden their knowledge of finance and investment, MUFG Bank will enrich the contents of brochures, website, as well as various communication tools. Moreover, MUFG Bank provides information including seminars for customers to be held on a regular basis.

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Providing line of products to meet diverse needs

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

MUFG Bank offers a diverse and high quality line of products that enable customers to select appropriate products according to their investment goals and risk tolerances.

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

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

MUFG Bank will select products and services that contribute to customers’ benefits by soliciting ideas for products from diverse investment management companies and insurance companies, as well as utilizing evaluations by third-party assessment service providers, as necessary.

In addition, MUFG Bank adopts following approaches to preclude prioritizing the products developed by affiliated investment managers at time of “selecting, stopping, suspending, discontinuing, and resuming products” for individual customers, and only recommending the products with high distribution fees.

At the time of selecting, stopping, suspending, discontinuing, and resuming products

Taking into account the “selection points” noted below, MUFG Bank considers whether or not selecting, stopping, suspending, discontinuing, or resuming the products among the same types of products.

< Selection points >

(1) Risks of products

(2) Costs

(3) Track record of performance

(4) Needs of potential customers, suitability, and consistency with investment environment

(5) Complexity of product structures, degree of difficulty in products explanations, and distribution channels

(6) Structures to support to be provided by investment managers for training for officers and employees of distributors

(7) Conformity with relevant laws and regulations

As a result of consideration, products developed by affiliated investment managers may be selected.

At the time of sale

MUFG Bank does not provide excessive incentives for handling the products of its affiliated investment managers in order to propose to the customers the products best suited to their needs. In addition, upon performance evaluation of officers and employees, MUFG Bank does not give preference to sales of products of affiliated investment managers over the products of other investment managers. Moreover, in order to preclude offering the products with high fees to customers, the divisions in charge of risks conduct monitoring on a regular basis, thereby maintaining the activities to make appropriate proposal to customers.

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Providing financial services leveraging the Group’s comprehensive capabilities

MUFG Bank strives to make proposals by leveraging the comprehensive capabilities of Group companies including Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities to fulfill diverse needs of the customers. Moreover, MUFG Bank will satisfy the changing needs of customers by conducting proposal activities on an ongoing basis that reflect customer’s intentions.

MUFG Bank makes comprehensive proposals not only on investment products but also on lending and support for inheritance and succession according to customers’ life cycles and needs.

Establishing a structure enabling comfortable, secure and safe transactions

MUFG Bank seeks to increase convenience for customers based on the notion of “open innovation” by proactively utilizing technologies and ideas acquired at home and abroad in cooperation with external parties and research institutions, such as additional services and functions in digital channels.

Using devices such as tablet terminals, MUFG Bank will strive to further increase convenience for customers by simplifying the procedures and speeding up the responses, as well as making better proposals.

MUFG Bank puts a framework in place to enhance security of Internet banking system day by day enabling customers to make transactions online with a sense of security.

Exerting professionalism

MUFG Bank seeks to strengthen its staff’s knowledge and skills in relation to products and investment environment through providing them with training and encouraging them to obtain outside professional qualifications, thereby developing expertise as professionals. Furthermore, MUFG Bank makes efforts to improve quality of its officers and employees by encouraging the persons in charge of visiting individual customers to acquire qualifications including financial planner (FP). At the same time, MUFG Bank strives to improve the knowledge and skills of its officers employees concerning products and investment environment by providing various training programs depending on their experience and level of positions.

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