Sources say Japanese Prime Minister Kishida Fumio intends to leave the faction he heads in the ruling Liberal Democratic Party while he is serving as prime minister and LDP president.

The LDP has recently faced criticism over allegations that five factions of the party underreported revenues in political funds reports.

Kishida instructed all LDP factions on Wednesday to refrain from holding fundraising events for the time being. He said his party must have a strong sense of crisis.

Members of both the ruling and opposition parties raised points about Kishida remaining faction chief after becoming prime minister. They said the prime minister should distance himself from his faction given the standpoint of political impartiality.

But Kishida dismissed the claims.

Observers say Kishida's latest move shows that he is trying to show a more neutral stance following the scandals.