Ethical Performance
inside intelligence for responsible business
 

inbrief

inbrief



Fine affair…The Financial Conduct Authority (FCA) has fined JPMorgan Chase Bank N.A. £137,610,000 ($220 million) for serious failings related to its Chief Investment Office (CIO).

JPMorgan's conduct demonstrated flaws permeating all levels of the firm: from portfolio level right up to senior management, resulting in breaches of Principles 2, 3, 5 and 11 of the FCA's Principles for Businesses - the fundamental obligations firms have under the regulatory system.

Tracey McDermott, the FCA's director of enforcement and financial crime said: "When the scale of the problems at JPMorgan became apparent, it sent a shock-wave through the markets. Maintaining the integrity of markets is a key part of our wholesale conduct agenda. We consider JPMorgan's failings to be extremely serious such as to undermine the trust and confidence in UK financial markets."

"This is yet another example of a firm failing to get a proper grip on the risks its business poses to the market. There were basic failings in the operation of fundamental controls over a high risk part of the business. Senior management failed to respond properly to warning signals that there were problems in the CIO. As things began to go wrong, the firm didn't wake up quickly enough to the size and the scale of the problems. What is worse, they compounded this by failing to be open and co-operative with us as their regulator."

"Firms must learn the lessons from this incident and ensure that they have business practices, values and culture to control the risks in their businesses."
 




JPMorgan Chase | Global | Corporate governance

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