Japan Suspends Prudential Financial Units Over Employee Misconduct

The Financial Services Agency of Japan issued business suspension and improvement orders to several units of Prudential Financial after discovering widespread misconduct by sales employees. The regulator prohibited Prudential Life Insurance and the life consultant channel of the Gibraltar Life Insurance division from soliciting new business until January 31, 2027.

These sanctions follow reports that current and former employees violated internal regulations by soliciting customer investments, offering profit-making schemes in exchange for money, and borrowing funds directly from customers. In addition to the solicitation ban, the regulator ordered Prudential Holdings of Japan, Prudential Life Insurance, and Gibraltar Life Insurance to submit comprehensive business improvement plans by the end of November and provide regular progress reports.

Hiromitsu Tokumaru, CEO of Prudential of Japan, responded to the orders by stating the company is working to reshape its operations. He noted that the firm is creating a business that will be more resilient, more accountable, and better equipped to earn and maintain customer trust.