The U.K. markets regulator fined a JPMorgan Chase & Co. unit 3 million pounds ($4.5 million) for failing to keep up-to-date records of clients and lacking risk and compliance controls.
Senior management at JPMorgan International Bank didn’t have “sufficient information and oversight tools” to correct the problem in its wealth management business for two years, the London-based Financial Conduct Authority said in an e-mailed statement today.
“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, director of enforcement and financial crime at the FCA, said. “In this case the firm did not have complete records, nor did its management have the information they needed to recognize this.
The regulator said that the bank’s computer-based record system didn’t hold sufficient information and that its suitability reports didn’t have adequate statements about client needs.
“We have fully cooperated with the FCA and have enhanced our procedures to ensure that they are compliant with regulatory requirements,” the bank said in an e-mailed statement. “As the FCA has noted in its press release, there has been no detriment to customers identified to date.”