Deutsche Bank AG's Japanese brokerage unit faces regulatory penalties after the nation's securities watchdog found that its employees improperly shared information about a company's earnings with clients.
The Securities and Exchange Surveillance Commission recommended that the Financial Services Agency take administrative action against Deutsche Securities Inc., the SESC said in a statement Tuesday, without specifying the type of penalties sought. The firm's governance and compliance are weak, the commission said.
This is the second time for Deutsche Securities to face regulatory sanctions in Japan in two years. The FSA ordered the firm to improve operations in December 2013 after finding that it provided excessive benefits to pension fund managers, who are treated like civil servants in Japan. A former employee was convicted of bribery and the firm cut pay of senior executives.
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