According to reports, JP Morgan Chase recently received subpoenas and inquiries from the Securities and Exchange Commission and other regulators about how it sells its own mutual funds and other proprietary products.
The SEC, other government authorities and a self-regulatory organization are reportedly seeking information about the bank’s use of proprietary products in its wealth-management business.
According to the reports, the SEC’s enforcement division has been looking into whether the bank and its brokerage affiliate adopted a strategy that uses bonuses and other incentives to encourage their financial advisers to steer clients improperly into in-house funds, structured notes and other investments that generate fees for the bank.
The probe includes a review of pensions and other accounts that hold the bank to a fiduciary standard, which obligates it to put clients’ financial interests ahead of its own.
The foregoing information, which is publicly available, is being provided by The White Law Group. 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.
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