Reuters exclusively reports little-known fees help Japan trust banks

Reuters exclusively reported a little-known practice among Japan’s biggest trust banks: a break fee of 2,000 yen per shareholder when a bank loses a client in the shareholder record-keeping business. The bank that takes the new client typically pays the fee. Insiders told Reuters this arrangement keeps a profitable business in the hands of a few big trust banks because newcomers balk at the cost. Japan’s three largest trust banks, Sumitomo Mitsui Trust, Mitsubishi UFJ Trust and Banking Corp and Mizuho Trust & Banking Co Ltd control at least 97% of the market, according to an internal bank document.