View more on these topics

FCA fines JP Morgan International Bank £3.1m for wealth management failings

FCA logo original size

The Financial Conduct Authority has fined JP Morgan International Bank £3,076,200 for systems and controls failings relating to its retail investment advice and portfolio investment services.

The fine follows the regulator’s thematic review into wealth management firms and the suitability of their advice. JP Morgan is now carrying out a past business review to assess investment suitability.

The FCA says over a two-year period JP Morgan’s senior management failed to address that it was unable to demonstrate advice suitability from its client files.

It says while no customer detriment has been found to date, the failings exposed customers to the risk they would be recommended inappropriate investments.

It found client files were not kept up to date and failed to record information such as client objectives, capacity for loss and investment experience.

JP Morgan’s computer-based system did not allow enough information to be kept on file. Suitability reports failed to explain why investments were suitable and explain their disadvantages.

The company also failed to follow its own policy to send clients details of their risk profiles.

The regulator says JP Morgan did not have adequate risk and compliance monitoring in place, and issues that were picked up were not adequately addressed until after February 2012.

JP Morgan was told by the FCA to carry out a skilled person’s report, and has since overhauled its suitability processes.

FCA director of enforcement and financial crime Tracey McDermott says: “Customers of wealth managers should be able to expect the firm to keep complete, up to date client records so they can give the right advice.  

“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.”

The fine against JP Morgan follows Ashcourt Rowan’s £412,000 FSA fine in November for suitability failures of its Savoy Investment Management business. Ashcourt Rowan’s fine was also triggered by the regulator’s thematic review into wealth management firms. 


Celebrities and footballers ‘victims of £125m film investment tax fraud’

A number of celebrities, bankers and football stars have been caught up in an alleged £125m tax fraud that revolved around film investments. According to the Mail on Sunday, West Ham United manager Sam Allardyce, Princess Diana’s former butler Paul Burrell and pop singers Mike Skinner of The Streets and Damon Gough, also known as […]


Japanese stocks regain ground following global sell off

Japanese stocks ended Friday’s session ahead, regaining some ground after the sell-off that was seen in the previous day. The Nikkei 225 closed 0.9 per cent higher at 14,612.45 points, while Topix index was up 0.5 per cent to 1,194.08. Both indices slid by about 7 per cent yesterday after global stockmarkets were spooked by […]

L&G to offer trustee-style governance for contract-based pensions

Legal & General has moved to close the perceived governance gap between trust and contract-based pensions by launching a “trustee style” committee to oversee the provider’s contract-based schemes. The issue of scheme governance was brought to the fore by the Work and Pensions select committee recently, which urged the Government to help employers set up […]


Lloyds to make £450m from selling 15% stake in SJP

Lloyds Banking Group will make £450m from selling a further 15 per cent stake in St James’s Place. Yesterday, reports stated the bank would net £500m from the sale, although an announcement to the stock exchange this morning reveals this figure will be around £450m. The sale will take place on 29 May. On completion […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm