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.
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.
1. Ensure customer-oriented approach
(1)【Principle 2】
Through training and other means, we ensure that our officers and employees adhere to the "Code of Conduct" and the "MUFG Basic Policy for Fiduciary Duties" in their judgments and actions. Additionally, to serve the best interests of our customers, we collect direct feedback from them through surveys and implement various measures based on their opinions to improve customer satisfaction.
Through training and other means, we ensure that our officers and employees adhere to the "Code of Conduct" and the "MUFG Basic Policy for Fiduciary Duties" in their judgments and actions. Additionally, to serve the best interests of our customers, we collect direct feedback from them through surveys and implement various measures based on their opinions to improve customer satisfaction.
3. Implementing customer-oriented consultation and provision of information
(1)【Principle 6】
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.
In cases of significant market changes, we provide timely and detailed follow-up by offering necessary information for customers' investment decisions, such as market outlooks and product performance. Additionally, in MUFG Wealth Management, we have established the "GMAP" as our house view*, and customer representatives share market perspectives with customers and provide advice on portfolio construction and review.
(*) "House view" refers to the official "investment opinion" of an organization in asset management.
(2)【Principle 5】
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 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】
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.
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】
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.
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】
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.
4. Provision of line of products to meet diverse needs
(1)【Principle 6】
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.
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.
(2)【Principle 3】
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.
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.
＜Selection Points＞
- 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
As a result of this consideration, we may select products from affiliated management companies.
【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.
【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】
To meet the diverse needs of our customers, we leverage the comprehensive strengths of group companies such as Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities, au Kabucom Securities, and WealthNavi to make proposals. We also continuously reflect customer intentions in our proposal activities to respond to changing customer needs.
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.
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】
By incorporating the concept of "open innovation," which actively utilizes excellent technologies and ideas from external companies and research institutions, we are adding new services and functions to digital channels to improve customer convenience.
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.
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】
Through training and encouragement to obtain external professional qualifications, we are enhancing knowledge and skills related to products and the investment environment, raising the professionalism of our staff. We encourage representatives who visit individual customers to obtain external qualifications such as FP, aiming to improve the quality of our officers and employees. We also conduct various training programs according to experience and job level to enhance knowledge and skills related to products and the investment environment.
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.
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.