JPMorgan to Pay $307Million to Settle Probe by SEC and CFTC
JPMorgan Chase & Co. agreed to pay $307 million to end a probe by the Securities and Exchange Commission and the Commodity Futures Trading Commission which lasted for almost two years. The probe disclosed flaws and the bank admitted to two wrong doings.
The main involvement in the settlement were that of the investment advisory business of JPMorgan, the J. P. Morgan Securities LLC and the JPMorgan Chase Bank N. A., which is a nationally chartered bank.
Andrew J. Ceresney, the director of the SEC Enforcement Division said a statement, "Firms have an obligation to communicate all conflicts so a client can fairly judge the investment advice they are receiving. These JPMorgan 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."
JPMorgan was under the scanner while the SEC and the CFTC probed possibilities of inappropriate actions in the sale of in-house investment products by the company to pension funds s well as its wealthy clients.
The inquiry by the SEC was related to the manner in which the investment advisors at JPMorgan recommended financial products to the clients.
New Zealand News
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