03:02 PM EDT, 06/21/2024 (MT Newswires) -- Mitsubishi UFJ Financial Group's ( MUFG ) MUFG Bank unit and two ventures face penalties as soon as Monday by Japan's Financial Services Agency for violating client confidentiality rules, Bloomberg reported Friday, citing people with knowledge of the matter.

The Japanese regulator is expected to issue business improvement orders on MUFG Bank, Morgan Stanley MUFG Securities and Mitsubishi UFJ Morgan Stanley Securities following a recommendation by Japan's securities watchdog earlier this month, the report said.

The Securities and Exchange Surveillance Commission said the firms exchanged information at least 26 times to get business, Bloomberg said.

MUFG declined to comment to MT Newswires. and Morgan Stanley ( MS ) did not immediately respond to a request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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