THE CITY’S new financial watchdog has fined a wealth management unit of JP Morgan Chase £3.08m for being unable to show it was giving clients the right advice.
The Financial Conduct Authority (FCA) said yesterday the failings were not corrected until the regulator brought them to the bank’s attention in the course of its wider review of wealth management firms.
“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,” the FCA’s director of enforcement, Tracey McDermott, said in a statement.
“In this case the firm did not have complete records, nor did its management have the information they needed to recognise this.”
The FCA said the failings persisted over two years, exposing customers to the risk that they would be given the wrong advice and inappropriate investments though no actual harm to customers has been found so far.
JP Morgan, whose fine was cut by 30 per cent due to an early stage settlement, said it has fully cooperated with the FCA and has enhanced its procedures to ensure they comply with regulations.
City A.M. Reporter