Japan Post Executives Queried by Lawyers on Sales Scandal: NHK

(Bloomberg) -- Top executives of Japan Post Holdings Co. have been interviewed by lawyers who are investigating a scandal involving improper sales practices at its insurance unit, NHK reported, citing people with knowledge of the matter.

The special investigation committee, composed of external lawyers, has conducted hearings with three executives, including Masatsugu Nagato, chief executive officer of Japan Post Holdings, and Mitsuhiko Uehira, president of Japan Post Insurance Co., NHK reported. The committee is scheduled to compile a final report by the end of this month regarding the insurer’s improper sales practices.

The lawyers have asked the executives about whether or not the insurer had sufficient structures in place to avoid the problem. They were also asked about precautionary measures to prevent any future sales violation for its insurance products, the public broadcaster said.

In an interim report released in September, Japan Post said it found about 6,300 cases of insurance sales at post offices that possibly violated the law or company rules. The scandal came to light in June with revelations that customers were potentially getting worse terms after switching to new policies recommended by Japan Post salesmen.

To contact the reporter on this story: Chikafumi Hodo in Tokyo at chodo@bloomberg.net

To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net, James Mayger

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