JPMorgan Chase to Pay $307 Million in Fine for Improper Investment Advice to Its Customers

JPMorgan Chase, the American multinational banking and financial services have been fined $307 million for misleading its customers and steering them to some of the investments that are connected to its own businesses.

JPMorgan Chase admitted of the wrong doing saying that it did not tell its customers clearly about conflicts of interest about how it managed their money.

On Friday, the Securities and Exchange Commission said that the bank pushed its wealth management clients towards its own mutual funds as well as hedge funds without informing them that they had higher fees compared to what its competitors offered.

The fines which JPMorgan will pay will be split between the SEC and the Commodities Futures Trading Commission. SEC will receive $267 million and $40 million will be received by the Commodities Futures Trading Commission.

In a statement, director of the SEC Enforcement Division, Andrew Ceresney said, "These J.P. Morgan subsidiaries failed to disclose that they preferred to invest client money in firm-managed mutual funds and hedge funds, and clients were denied all the facts to determine why investment decisions were being made by their investment advisers."