Another fine for JP Morgan. So far, no word of any consequences for board members or top executives.
JPMorgan Chase has agreed to pay $307 million to settle accusations that it improperly steered clients to the company’s in-house mutual funds and hedge funds.
From 2008 to 2015, brokers and financial advisers in several divisions of JPMorgan gave preference to investment products created by the bank’s asset management division when deciding where to put client money, regulators said on Friday.
In some cases, regulators said, the clients were put into products with higher fees, which earned JPMorgan more money, even when the same JPMorgan product was available for a lower fee.
Note that the settlement will not prevent them from maintaining this conflict of interest; it will just require slightly better disclosure, though not enough for customers to evaluate the costs of the conflicted fund selection.