Banking Law News

JPMorgan Admits It Didn’t Tell Clients About Conflicts

Dec. 21, 2015, 5:00 AM

JPMorgan Chase & Co. will pay more than $300 million to settle U.S. allegations that it didn’t disclose its preference for putting clients’ money into the bank’s own investment products.

America’s largest bank by assets failed to disclose numerous conflicts of interest tied to certain wealth management clients, the Securities and Exchange Commission (SEC) said Dec. 18. That included placing investors in more expensive proprietary mutual funds, and showing a preference for third-party-managed hedge funds that made payments to a JPMorgan affiliate, it said.

The New York-based bank admitted that two of its units that manage money — its securities...

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