JPMorgan fined $307 mn for conflicts of interest
US regulators fined JPMorgan Chase $307 million Friday for failing to disclose conflicts of interests to clients when it recommended proprietary investment products over third-party options.
From 2008-2013, JPMorgan failed to make clear to investment clients numerous conflicts of interests, including its preference for JPMorgan-managed mutual funds over other funds, according to the US Securities and Exchange Commission (SEC).
JPMorgan, the biggest US bank by assets, also did not tell investors that some JPMorgan-managed mutual funds offered a less expensive share class than the one recommended, which meant higher revenues for the JPMorgan affiliate.
It also did not tell clients that JPMorgan preferred to invest clients in third-party-managed hedge funds that shared management or performance fees with JPMorgan, regulators said.
JPMorgan admitted wrongdoing and agreed to pay $307 million in penalties, according to an SEC statement. That includes a $40 million fine the bank will pay to the Commodities and Futures Trading Commission in a parallel case. (AFP)