The Business Times

JPMorgan to pay over US$300m in penalties

Bank admits it didn't tell customers about conflicts of interest in how it handled their money from 2008 to 2013

Published Sun, Dec 20, 2015 · 09:50 PM
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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).

JPMorgan admitted disclosure failures from 2008 to 2013 related to two units that manage money - its securities subsidiary and its nationally chartered bank - as part of the SEC settlement. The New York-based bank said that the omissions in its communications were unintentional and t…

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