Japanese regulators have raided the offices of pension fund manager, AIJ, in search of $2.4 billion worth of clients’ funds. The 84 pension co-operatives that have invested with AIJ represent 880,000 employees, all of whom will be greatly affected by the loss.
In turn, the Financial Services Agency (FSA) has stripped AIJ of its asset manager license, says Minister Shozaburo Jimi:
“Today, we have stripped AIJ Investment Advisors of its registration, as well as ordering the Tokyo-based brokerage ITM Securities to suspend operations for six months, in order to ensure the preservation of client assets.”
As a response to public criticism that the agency could have prevented the scandal, the FSA is carrying out a similar investigation into all 256 Japanese asset managers.