Fiduciary Duties(details of MUFG Bank initiatives)
Mitsubishi UFJ Financial Group (hereinafter referred to as MUFG) will formulate and announce “MUFG Basic Policy for Fiduciary Duties” as a common guideline of the Group so as to enforce its customer-oriented undertakings.
MUFG Bank has defined "Pursuing Customers' Best Interests" as follows: "Based on high ethical standards and expertise, we strive to provide appropriate and easy-to-understand products, services, and channels to help customers 'save, increase, protect, and inherit' their valuable assets. We aim to be a partner that customers can trust with their present and future by aligning with their goals, life stages, intentions, and level of understanding." We are committed to putting this into practice.
In addition to adopting the "Principles for Customer-Oriented Business Conduct" established by the FSA, MUFG Bank undertakes the following initiatives under this basic policy.
【Supplementary Principle 1・2・5】
1. Ensure customer-oriented approach
(1)【Principle 2】
2.Developing and providing products that match customers' needs
(1)【Principle 6】・【Supplementary Principle 3・4】
We will develop and provide products and services that serve the interests of our customers according to their needs.
When developing products, we will identify the target customers.
For the products we have developed, we conduct regular monitoring to ensure that the intended product characteristics during development are maintained and that sales are being made to the target customer attributes, and continuously review and make improvements to ensure quality.
3. Implementing customer-oriented consultation and provision of information
(1)【Principle 6】
(2)【Principle 5】
When proposing products, we explain the product features, risks, fees, and market trends in a more understandable manner. Important information is highlighted using larger fonts, colors, etc., to ensure sufficient information is provided. To enhance transparency for customers' investment decisions, we are gradually introducing "Important Information Sheets (Individual Product Edition)" and will continue to provide detailed explanations. We also use tablet devices and other tools to provide easy-to-understand information through simulations, charts, etc., explaining returns, losses, other risks, and transaction conditions.
To make it easier for customers to select products, we present a "Mutual Fund Selection" that introduces representative products by asset class and region, helping customers choose funds that match their investment objectives, experience, and risk tolerance.
When proposing products, we use tablet devices and other tools to present model portfolios and investment simulations based on questions about investment intentions, engaging in dialogue with customers to make better proposals.
For complex or high-risk products, only highly skilled representatives are allowed to explain them, ensuring more detailed explanations. Conversely, for low-risk products like government bonds for individuals, we simplify the sales process by providing concise information.
(3)【Principle 4】
The "Important Information Sheets" clearly present key points such as fees, and we strive to provide detailed explanations, including comparisons with other investment products, covering risks and performance.
(4)【Principle 7】
At the branch level, we have set evaluation items that assess the improvement of total returns for customers holding mutual funds, aiming for stable medium- to long-term investment results based on appropriate asset and time diversification risk control.
(5)【Principle 6】
4. Provision of line of products to meet diverse needs
(1)【Principle 6】・【Supplementary Principle 3】
We have a wide and high-quality product lineup to help customers select appropriate products based on their investment objectives and risk tolerance. We offer many low-risk and low-fee products, making it easier for a broader range of customers, including those with little investment experience, to use our products.
We are also working to improve the convenience of internet transactions and installment transactions, expanding low-cost index funds exclusive to internet banking, and offering fee discounts for mutual fund purchases via internet banking, creating an environment that is easy for customers of all ages to use.
In order to provide products and services that serve the interest of our customers, with respect to these product characteristics, we will continuously share relevant customer attribute information and sales status information with product development companies.
We will strive to understand new customer needs, develop and provide products and services that benefit the diverse needs of our customers.
In order to ensure that we provide appropriate products to our customers, when developing products, we will verify the needs and suitability of the target customers, the complexity and risks of the products, and the costs involved.
(2)【Principle 3】
For individual customers, we implement the following measures to ensure that we do not prioritize products from affiliated management companies during "product selection and resumption," "suspension, pause, and discontinuation," and "sales," nor do we recommend only high-fee products.
【When Selecting, Suspending, Halting, Discontinuing, or Resuming Products】
We consider the following "Selection Points" when determining whether to select, suspend, halt, discontinue, or resume handling products from the same product group.
- Product risk
- Costs
- Performance track record
- Needs and suitability of the target customers, and alignment with the investment environment
- Complexity of the product structure, difficulty of product explanation, and sales channels
- Educational support system for sales company staff provided by the management company
- Compliance with relevant laws and regulations
【When Saling】
To offer the most suitable products that meet our customers' needs, we do not provide excessive incentives for handling products from affiliated management companies. Additionally, in evaluating our staff, we do not favor the sale of products from affiliated management companies over similar products from non-affiliated management companies. Furthermore, to ensure that we do not focus excessively on selling high-fee products, the risk management department conducts regular monitoring to maintain appropriate proposal activities for our customers.
7. Provision of financial services leveraging the Group's consolidated strength
(1)【Principle 2】
We provide comprehensive proposals that include support for loans, inheritance, and asset succession, in addition to investment products, based on customers' goals, life cycles, and needs.
8.Establishment of a structure enabling comfortable, secure and safe transactions
(1)【Principle 6】
We are working to improve customer convenience by simplifying procedures and speeding up responses using tablet devices and other tools, aiming to make better proposals.
We are continuously enhancing the security of internet banking, ensuring that customers can conduct transactions online with peace of mind. We also strive to make the screens easy to understand and operate, aiming to create a comfortable transaction environment. Furthermore, we are establishing a system to handle consultations via video calls for customers who find it difficult to visit our branches.
9. Exertion of professionalism
(1)【Principle 2】
We have established a Wealth Management (WM) personnel system to develop representatives with advanced practical skills, knowledge, and humanity who can respond to diverse customer needs. For example, to develop Senior Wealth Advisors, who are professionals in the WM field, we conduct WM job rotations that provide opportunities to learn specialized knowledge across the group.