Prudential of Japan Suspends New Sales for 90 Days

Implementing action plan to address employee misconduct and rebuild customer trust

Feb. 3, 2026 at 8:23pm

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Prudential of Japan and its parent company, Prudential Financial, Inc., have announced a voluntary 90-day suspension of new sales activity at Prudential of Japan. This suspension will support the implementation of comprehensive operational, organizational, and governance changes to address previously disclosed incidents of misconduct by employees. Prudential of Japan will also introduce actions to rebuild trust in its business and care for impacted customers, including establishing an independent customer reimbursement program.

Why it matters

The suspension of new sales activity is an important step for Prudential of Japan to rebuild trust and implement necessary changes to its organization after incidents of employee misconduct, including inappropriate investment solicitations. This move aims to address the harm caused to customers and stakeholders and restore Prudential of Japan's reputation as a symbol of exceptional customer care in the country.

The details

Prudential of Japan announced the findings of an internal investigation into instances of misconduct by certain employees, which included inappropriate investment solicitations. The company is implementing measures to reimburse impacted customers, restructure employee incentive compensation, and strengthen oversight of sales practices, governance, and risk management. The plans also include enhanced education, training, and recruitment standards for Prudential of Japan employees.

  • The suspension of new sales activity at Prudential of Japan will begin on February 9, 2026.
  • Kan Mabara, the previous president and CEO of Prudential of Japan, has left the company as of February 1, 2026 and will not be an advisor to the company.

The players

Prudential of Japan

A subsidiary of Prudential Financial, Inc. that provides life insurance and financial services in Japan.

Prudential Financial, Inc.

A global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of December 31, 2025.

Hiromitsu Tokumaru

The new president and chief executive officer of Prudential of Japan, who brings over 20 years of industry experience and a commitment to restoring customer trust at the company.

Brad Hearn

The president and chief executive officer of Prudential Holdings of Japan.

Andy Sullivan

The chief executive officer of Prudential Financial.

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What they’re saying

“I would like to deeply apologize for the harm this matter has caused to our customers and stakeholders. The decision to enter into a voluntary suspension of new sales activity is an important step to rebuild trust and implement necessary changes to our organization.”

— Hiromitsu Tokumaru, President and Chief Executive Officer of Prudential of Japan

“On behalf of Prudential of Japan, we apologize for letting our customers down. The conduct that led to this outcome is completely unacceptable and inconsistent with the standards of excellence we set for ourselves. We are taking focused actions intended to prevent future misconduct; support and reimburse our impacted customers; and restore the deep trust that is the cornerstone of our business.”

— Brad Hearn, President and Chief Executive Officer of Prudential Holdings of Japan

“Doing right by our customers is core to who we are at Prudential and we take this matter extremely seriously. We are taking decisive actions to address the compliance, operational, and governance issues identified by the investigation. Rebuilding customer trust is a top priority. For nearly 40 years, Prudential has been a symbol of exceptional customer care in Japan, and we are committed to restoring the standing that has long set us apart.”

— Andy Sullivan, Chief Executive Officer of Prudential Financial

What’s next

The judge in the case will decide on Tuesday whether or not to allow Kan Mabara, the previous president and CEO of Prudential of Japan, to serve as an advisor to the company.

The takeaway

This case highlights the importance of strong compliance, operational, and governance practices in the financial services industry, especially for companies with a long history of customer trust. Prudential's decisive actions to address the misconduct and rebuild customer confidence demonstrate the company's commitment to its core values and the importance of transparency and accountability in restoring its reputation.