Masatsugu Nagato, chief executive of Japan Post Holdings, is considering stepping down from his role in the wake of the company’s improper sales scandals. 
“Regarding management responsibility, I will announce it at an appropriate time. There is a broad range of stakeholders, and each has a different responsibility, so the management will need to discuss the matter thoroughly,” said Nagato (pictured) at a Tokyo press conference on December 19, according to Japan Today.
The news follows reports that the country’s Financial Services Agency (FSA) may look to halt certain sales and operations at Japan Post. Operations may be paused as early as December 27, after an on-site FSA investigation found case violations of insurance business. There were 48 cases of legal violations; and 622 in-house rule breaches.
After an internal investigation of 183,000 policies, Japan Post announced the number of confirmed cases of improper sales have reached nearly 13,000 — double the amount in an interim company report released September. The group has set aside US$32 million for investigations surrounding the scandal-linked policies. An updated report will be released in March 2020.
Japan Post Holdings in the period of April to September, saw a 4.8% dip in group revenue to US$54 billion — attributed to the suspension of the group’s own and third-party life insurance products since July. In the first half of the business year, the group’s number of new contracts fell to 580,000 — meaning a decline in new deals of 10%.
The Japanese government owns a 57% stake in Japan Post Holdings.
With these recent developments, it remains to be seen whether the firm’s target of a January 2020 resumption of product sales will move forward.

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