Japan’s Financial Services Agency is considering ordering two subsidiaries of Japan Post Holdings to halt some of its operations, according to reports.
The agency may order Japan Post Insurance and Japan Post halt sales and some other operations as early as December 27 after an on-site investigation lasting three months found cases violating the insurance business law.
The insurance and mail delivery units, which postponed the restart of suspended insurance sales from October to January, will have to push back the schedule further.
The orders will only cover insurance sales, while postal, deposit and other services will be excluded, according to the sources.
An internal probe by parent Japan Post Holdings has found 48 cases of insurance products sales that violate the law, such as providing false explanations to customers.
It also discovered a further 622 cases of improper sales that breached in-house rules, including signing contracts with elderly customers with no family members present, people close to the matter said. The probe is still underway.
 

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