Japan Custody Bank Mulls New Structure to Improve Governance

Custody Bank of Japan Ltd. is considering changing its corporate structure to strengthen governance following allegations of misconduct by a former top executive, according to people familiar with the situation.

Custody Bank of Japan lost business after the allegations were made last year and the bank’s majority shareholder, Sumitomo Mitsui Trust Holdings Inc., wants to prevent a recurrence, the people said.

In June, the bank said it found improper conduct by an unidentified former board member and was in contact with authorities for potential criminal offenses. The new structure would create an audit committee with more than half the ...