THE UK financial regulator today announced that it has fined JP Morgan’s wealth management unit over £3m for failing to give clients the correct advice.
The Financial Conduct Authority said that it had discovered the bank’s failings as part of its thematic review of wealth management firms in Britain and the suitability of their advice.
Issued identified included client files not being kept up to date and inadequate reports explaining why investments were suitable.
“No matter who they are, customers of wealth managers should be able to expect the firm to keep complete, up to date client records so that they can give the right advice,” said Tracey McDermott, director of enforcement and financial crime at the FCA.
“In this case the firm did not have complete records, nor did its management have the information they needed to recognize this.
“Firms which fail to keep the right records expose their clients to the risk of inappropriate investments and have no way of checking whether their advice has been appropriate.”