MUFG Penalized by Japan’s Regulator for Client Info Breach (3)

Japan’s financial regulator penalized Mitsubishi UFJ Financial Group Inc.’s flagship banking unit and two joint ventures for violating client confidentiality rules, potentially dealing a further blow to their business.

The Financial Services Agency ordered MUFG Bank Ltd., Morgan Stanley MUFG Securities Co. and Mitsubishi UFJ Morgan Stanley Securities Co. to improve their operations. The FSA also asked for reports by July 24 on the cause of the breach and planned measures to prevent a recurrence.

The scandal has shaken confidence in the country’s largest banking group, causing some clients to take bond underwriting business elsewhere. Japan forbids commercial ...