Concordia Financial Group Fiduciary Duty Declaration (Revised)

The Concordia Financial Group (the “Group”) shall faithfully act on customers’ behalf in operations pertaining to the formation and management of customers’ assets based on its management philosophy of “contributing to the customers’ affluent lives.”
Accordingly, based on relationships of trust with customers, the Group shall place the highest priority on customers’ true interests, and shall fulfill the duties entrusted to it by customers, by supporting the formation of portfolios that contribute to investment returns over the medium- to long-term, as financial professionals with high levels of expertise and business ethics.
In addition, regular announcements shall be made regarding the status of each Group company’s implementation of this declaration, and it shall be revised in accordance with the status of its implementation.

Customer-oriented Support for Asset Formation and Management

1. The Group shall focus on its customers and support the formation of portfolios that are appropriate for customers’ life stages, and consistent with their true needs and interests.

  • žThe Group shall suggest appropriate portfolios with product compositions that meet customers’ needs, taking into account the status of their assets and liabilities, knowledge, experience, and the objectives of their asset formation and management.
  • žžThe Group shall provide support that contributes to customers’ investment returns over the medium- to long-term.

Provision of the Optimal Investment Products

2. After accurately identifying customers’ needs, the Group shall provide products that contribute to customers’ asset formation and management over the medium- to long-term.

  • ž The Group shall prepare a wide range of investment products to allow it to fulfill the varied needs of its customers.
  • ž After examining the characteristics, risks, and other factors related to various products offered by investment management companies and insurance companies, the Group shall provide products that contribute to customers’ asset formation and management, and suggest portfolios that take diversified investment into consideration.

Provision of Information to Customers

3. The Group shall accurately and promptly inform customers of information related to investment products, market trends, and other information.

  • žWhen suggesting investment products, the Group shall use simple terminology and expressions, and shall utilize IT-based tools to simplify explanation to best elicit understanding from even customers with little investment experience.
  • žThe Group shall explain the characteristics, risks, and other factors related to investment products that it suggests in a careful and easy-to-understand manner, in accordance with the complexity of the product and the level of risk, in order that customers may sufficiently understand the products.
  • žThe Group shall provide follow-up services in a timely, appropriate manner in accordance with customers’ respective asset formation and management objectives, by providing information related to the status of assets held, market trends, and other factors.
  • žThe Group shall enhance transparency, including through providing information related to various fees, in order to contribute to customers’ investment decisions.
  • žThe Group shall promote support for financial education, in order to enhance the financial literacy of regional communities.

Appropriate Management of Conflicts of Interest

4. The Group shall appropriately manage the selection of products and provision of information to customers, to ensure that customers’ interests are not unfairly harmed.

  • The Group shall select high quality products and provide appropriate products to customers, without bias based on fees paid by companies providing products or being Group companies’ products.

Creation of a Structure that Prioritizes Customer Satisfaction

5. The Group shall create an appropriate sales structure that contributes to enhancing customers’ investment results, and shall build systems to verify its effectiveness.

  • The Group shall create various channels as it strives to create an environment where customers can engage in discussions with peace of mind, as well as to enhance convenience for customers.
  • The Group shall build an evaluation system for employees that takes into consideration initiatives consistent with customers’ needs and interests, and relationships of trust with customers.
  • The Group shall regularly measure customer satisfaction in regard to its services, and build internal systems to reflect feedback from customers in improvements to products and enhancements to services.

Training and Securing Personnel

6. As it aims to provide the best financial services to its customers, the Group shall train personnel with a high level of expertise regarding finance, and foster a strong sense of responsibility in regard to fulfilling the duties entrusted to it by customers.

  • The Group shall enhance its employees’ level of expertise and improve its training systems to train personnel with a strong sense of responsibility in regard to fulfilling the duties entrusted to it by customers, in order to thoroughly implement a customer-oriented approach.

(Note) This declaration applies to the following Group companies: The Bank of Yokohama, The Higashi-Nippon Bank, and Hamagin Tokai Tokyo Securities.

(Enacted: September 29, 2016)

(Revised: June 30, 2017)

(Revised: April 1, 2019)

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