JP Morgan Chase has been ordered to pay a surprisingly high fine of $300mio and has admitted to wrong-doing in order to settle with the US CFTC and US SEC linked to its sales of investment products to wealth management clients this week. The bank in essence has acknowledged that it failed to disclose dual activities to private bank clients of investment promoter and also other roles in the underlying commodity and hedge funds. The underlying funds linked to JP Morgan where in fact a more expensive share class of mutual funds. Such actions may be allowed under US law but need to be fully disclosed up front to investors. The settlement relates to actions taken by Chase from 2008 to 2013 and products sold via bank branches. A former JP Morgan banker/broker was a whistleblower in the case, an increasingly prevalent feature in such bank related cases.
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