On July 27th, 2016, JP Morgan Securities (JPMS) and JP Morgan Chase Bank (JPMCB) entered into a Consent Agreement with the Indiana Securities Commission. JPMCP consented to the entry of the agreement that alleged they had engaged in conduct that was outside the standards of honesty and ethics generally accepted in the securities trade and industry, in violation 710 Ind. Admin, Code 4-10-1 (23) (2016).
The agreement alleged that between 2006 and 2014 JPMS failed to disclose pertinent information to Indiana investors concerning their JP Morgan IM account investments.
Specifically the order alleged:
-Between 2008 and 2013 JPMS failed disclose that certain proprietary mutual funds purchased for
Chase Strategic Portfolio (CSP) clients offered institutional shares that were less expensive than institutional shares that JPMS chose for CSP clients.
-Between 2011 and 2014, no account opening document or marketing materials disclosed to Indiana Investment Management account clients or Indiana JP Morgan Investment clients that JPMB preferred to invest client assets in Proprietary Mutual funds and between 2008 and 2014 JPMB did not disclose its preference for investing certain investment management account assets in certain proprietary hedge funds to Indiana clients.
-The agreement also alleged that JMBCP did not disclose its preference for placement-agent-fee-paying third party hedge fund managers in certain investment manager accounts to Indiana clients until August of 2015.
In the consent agreement, JPMCB agrees to pay $950,000 to resolve the ISD’s investigation. They also consented to the agreement with no admission to liability for the purpose of settling the proceedings.
The White Law Group is investigating potential claims against JP Morgan Securities and JP Morgan Chase Bank. To the extent that JP Morgan clients paid too much in fees as a result of investments in JP Morgan proprietary funds, those investors may be able to recover their losses in a FINRA arbitration claim.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in claims against their brokerage firm throughout the country.
For more information on the firm and its securities arbitration practice, visit https://www.whitesecuritieslaw.com. For a free consultation with a securities attorney, please call the firm at 888-637-5510