FCA Fines J.P. Morgan Over £3.076M Over Systems and Control Failings

On May 23, the new UK conduct regulator, the Financial Conduct Authority (FCA), fined J.P. Morgan for failings in its wealth management business that persisted for two years until 2012.  Specifically, the bank failed to retain and update information on client objectives and risk tolerance.

The investigation, which originally began under the FSA, found that there had been a serious risk of inappropriate investments being made on behalf of clients, as there had been no systems in place to monitor whether appropriate advice had been given.  However, the investigation was unable to find any actual detriment to clients.

The fine levied reflects a 30% discount for cooperation and early settlement by J.P. Morgan.  FCA Notice.