LONDON - British regulators fined JPMorgan Chase £3.1 million ($4.7 million) on Thursday for failings in its wealth management division.
The Financial Conduct Authority said that unit’s senior management had failed to provide clients adequate advice and carried out poor recording-keeping related to individuals’ investments from January 2010 to February 2012.
The problems included not keeping client files up to date and failing to notify customers of the suitability of financial products.
“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,†Tracey McDermott, the Financial Conduct Authority’s director of enforcement and financial crime, said in a statement.
The regulator said poor record-keeping had not materially affected any JPMorgan client. The bank received a 30 percent discount for settling with authorities. The fine would have been £4.4 million without the discount.
Over the last three years, other banks, including HSBC and Barclays, have also faced stiff penalties related to the inappropriate sale of financial products to clients.
The new fine is the latest in a series of regulatory problems for JPMorgan.
In the United States, for example, the Federal Energy Regulatory Commission is investigating charges that the bank misrepresented energy prices in a number of states. At least eight federal agencies are investigating JPMorgan, including the Commodity Futures Trading Commission and the Securities and Exchange Commission.
