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JP Morgan Chase to pay $307m for steering investors toward own products
Source: The Guardian
JP Morgan Chase to pay $307m for steering investors toward own products
Bank admits wrongdoing, an unusual move in such cases, for charges of failing to
disclose conflicts of interest when promoting investments to wealthy clients
Dominic Rushe
Friday 18 December 2015 18.51 GMT
JP Morgan Chase agreed to pay $307m on Friday to settle charges that two of its wealth management units failed to disclose conflicts of interest when promoting investments to its wealthy clients.
Regulators said that JP Morgan Securities and its nationally chartered bank, JPMorgan Chase Bank, steered retail investors towards the firm’s own investment products without properly disclosing that preference.
The bank admitted wrongdoing, an unusual move in such cases, and has agreed to pay $267m to the Securities and Exchange Commission (SEC) and $40m to the US Commodity Futures Trading Commission (CFTC).
“Firms have an obligation to communicate all conflicts so a client can fairly judge the investment advice they are receiving,” said Andrew Ceresney, director of the SEC enforcement division.
According to the SEC between 2008 and 2013 the bank failed to properly disclose its preferences to both retail mutual fund customers and high net worth clients.
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Bank admits wrongdoing, an unusual move in such cases, for charges of failing to
disclose conflicts of interest when promoting investments to wealthy clients
Dominic Rushe
Friday 18 December 2015 18.51 GMT
JP Morgan Chase agreed to pay $307m on Friday to settle charges that two of its wealth management units failed to disclose conflicts of interest when promoting investments to its wealthy clients.
Regulators said that JP Morgan Securities and its nationally chartered bank, JPMorgan Chase Bank, steered retail investors towards the firm’s own investment products without properly disclosing that preference.
The bank admitted wrongdoing, an unusual move in such cases, and has agreed to pay $267m to the Securities and Exchange Commission (SEC) and $40m to the US Commodity Futures Trading Commission (CFTC).
“Firms have an obligation to communicate all conflicts so a client can fairly judge the investment advice they are receiving,” said Andrew Ceresney, director of the SEC enforcement division.
According to the SEC between 2008 and 2013 the bank failed to properly disclose its preferences to both retail mutual fund customers and high net worth clients.
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Read more: http://www.theguardian.com/business/2015/dec/18/jp-morgan-chase-307-million-investors-conflict-of-interest
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