The Japanese securities market regulator is currently investigating allegations as to employees of Deutsche Bank AG providing excessive entertainment and expenses to executives of a Japanese pension fun. The investigation revolved around breach of regulations committed, according to sources familiar with the matter.

The Securities and Exchange Surveillance Commission had found evidence of potential infractions during its audit of Deutsche Securities Inc. Deutsche Securities is the investment banking unit of the German bank in Tokyo. The sources spoke on condition of anonymity as the investigation was ongoing.

Deutsche Bank employees reported large expenses termed entertainment for pernsion fund executives. According to the audit, these raised red fags for regulators as the pension fund executives are considered as public servants and covered by anti-bribery statutes as they handle part of the national pension scheme.

The bank had already instigated its own investigation into the matter before the SESC did its audit last May. It had directly stopped marketing directly to the pension funds as part of its review of its sales and compliance practices according to the anonymous sources.