Japan regulator to sanction Deutsche Securities for excessive client entertainment: sources

TOKYO (Reuters) - Japan's securities market watchdog will recommend that a Tokyo-based unit of Deutsche Bank be sanctioned for excessive entertainment of pension fund executives considered public employees under the law, sources with knowledge of the matter said on Wednesday. The Securities Exchange and Surveillance Commission (SESC) had been investigating entertainment by Deutsche Securities because the clients involved managed part of the Japanese national pension scheme, making them public employees in the eyes of the law and subject to anti-bribery statutes, Reuters reported in September. The Financial Services Agency, which carries out the recommendations of the SESC, will likely issue an order to Deutsche Securities to improve its business practices, the sources told Reuters on condition of anonymity because no official decision on a sanction has been announced. A spokesman for Deutsche Securities in Tokyo declined to comment. (Reporting by Noriyuki Hirata; Writing by Nathan Layne; Editing by Chang-Ran Kim)