According to a New York Times report, JP Morgan is coming under scrutiny for pushing its own proprietary products.
Several former JP Morgan financial advisors are on record saying that they were encouraged to “favor JP Morgan’s own products even when competitors had better-performing or cheaper options.”
The benefit to JPMorgan is clear. The more money investors plow into the bank’s funds, the more fees it collects for managing them. The aggressive sales push has allowed JPMorgan to buck an industry trend. Amid the market volatility, ordinary investors are leaving stock funds in droves.
This is not the first time that one of the larger banks or brokerage firms has come under scrutiny for pushing its own proprietary products. In fact, this is such a common issue that it a point of emphasis for regulators.
For the full New York Times report, visit http://dealbook.nytimes.com/2012/07/02/ex-brokers-say-jpmorgan-favored-selling-banks-own-funds-over-others/.
The foregoing information has been provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on the firm, visit http://www.whitesecuritieslaw.com.