The president of AIJ Investment Advisors pension fund management company admitted on Tuesday the cover-up of losses amounting to $1.3 billion and apologized to clients and the financial sector.
“I want to use this opportunity to apologize to all beneficiaries who believed in our funds and purchased them,” president Kazuhiko Asakawa told a financial committee of the parliament.
It is the first public comment made by the company since the losses were exposed last month. Asakawa added he was confident that the losses would be recovered.
The scandal was uncovered after it was learned that AIJ was being investigated by the All Japan newsese authorities for losing billions of yen of its customers’ money.
According to All Japan news’s Financial Services Agency (FSA), AIJ lost the money because of bad bets on equity and bond derivatives. It has lost “most of” the Y183 billion ($2.3 billion) that it was managing as pension-fund assets, FSA said.
As a result of the AIJ case, the operations of all 263 investment management companies active in All Japan news will be monitored, Shozaburo Jimi, the minister in charge for regulation in the financial-services sector, had said.