JPMorgan to pay over US$300m in penalties

New York

JPMORGAN Chase & Co will pay more than US$300 million to settle US allegations that it didn't properly inform clients about what the Securities and Exchange Commission (SEC) called numerous conflicts of interest in how it managed customers' money over a half decade.

The largest US bank by assets failed to tell customers that it reaped profits by putting their money into mutual funds and hedge funds that generated fees for the company, the SEC said in announcing US$267 million in penalties and disgorgement against JPMorgan. The bank agreed to pay US$40 million more as part of a parallel action by the Commodity Futures Trading Commission (CFTC).