Fiduciary Duties(details of MUFG Bank initiatives)

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.

When proposing products, we use a "Consultation Sheet" to select products that match the customer's knowledge, experience, financial situation, and objectives. Especially for elderly customers or those with insufficient investment knowledge and experience, we propose low-risk products. We also use simulation tools like the "MUFG Goal Planning System (GPS)" to make goal-based proposals that address customer issues and propose products that meet their needs.

We provide easy-to-understand information for elderly customers and those with little investment experience, considering their knowledge and experience.

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.

When soliciting and selling financial products, we confirm customers' understanding using "Important Information Sheets" that summarize key points based on pre-contract documents, prospectuses, and sales materials.

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.

To evaluate comprehensive sales activities that benefit customers' interests and needs, we not only inform our officers and employees about customer-centric policies and initiatives but also maintain a performance evaluation system that does not favor the sale of specific investment products. We have introduced a performance evaluation system that balances the steady expansion of the customer base and the continuous accumulation of individual customer balances. Additionally, we are building a system that pursues the best interests of customers by extending the performance evaluation period to a longer-term perspective.

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.

To provide information that enhances the financial and investment knowledge of customers starting asset formation and younger generations, we are enhancing brochures, websites, smartphone apps, and various communication tools. We also regularly hold customer seminars and provide information as needed.

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.

We solicit many product ideas from various investment management companies and insurance companies and select products and services that benefit customers, utilizing external evaluation agencies as needed.

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.