Some executives of Prudential Financial Group's Japanese subsidiaries will be punished with salary cuts; an expert panel previously issued a report revealing a large number of employee misconduct involving customer funds in this business unit. The company said in a statement on Thursday that Chairman Tokumaru Hiromitsu and two other employees will accept a 30% salary cut over a period of three months to take responsibility for this. The investigation committee found that the problems with Prudential Life Insurance, a Japanese subsidiary of the American insurance group, stemmed from structural flaws in its governance framework and business model. This is the latest case in a series of scandals in the Japanese insurance industry in recent years. According to a source familiar with the matter, Japan's financial regulators are considering punitive measures, including temporary suspension of business, against Prudential Life Insurance. Prudential Life Insurance set up this committee after disclosing the alleged misconduct of more than 100 current and former sales staff, causing customers to lose more than 3.1 billion yen. The case involved employees promoting false investment products and borrowing money from customers. Company executives plan to hold a media briefing later on Thursday.

Some executives of Prudential Financial Group's Japanese subsidiaries will be punished with salary cuts; an expert panel previously issued a report revealing a large number of employee misconduct involving customer funds in this business unit. The company said in a statement on Thursday that Chairman Tokumaru Hiromitsu and two other employees will accept a 30% salary cut over a period of three months to take responsibility for this. The investigation committee found that the problems with Prudential Life Insurance, a Japanese subsidiary of the American insurance group, stemmed from structural flaws in its governance framework and business model. This is the latest case in a series of scandals in the Japanese insurance industry in recent years. According to a source familiar with the matter, Japan's financial regulators are considering punitive measures, including temporary suspension of business, against Prudential Life Insurance. Prudential Life Insurance set up this committee after disclosing the alleged misconduct of more than 100 current and former sales staff, causing customers to lose more than 3.1 billion yen. The case involved employees promoting false investment products and borrowing money from customers. Company executives plan to hold a media briefing later on Thursday.