The Monetary Authority of Singapore (MAS) has fined JPMorgan Chase (JPM, Financial) 2.4 million Singapore dollars ($1.79 million) due to the bank's failure to prevent and detect misconduct by its client managers. The managers provided inaccurate or incomplete information to clients in 24 over-the-counter bond transactions, charging spreads higher than agreed rates.
MAS stated that JPMorgan lacked adequate processes and controls to ensure compliance with pre-agreed spreads. The bank has accepted responsibility for failing to prevent or detect the misconduct and has paid the fine. JPMorgan has refunded the overcharged fees to affected clients and strengthened its pricing framework and internal controls to prevent recurrence.
JPMorgan expressed satisfaction with the resolution, noting the affected transactions were a small portion of their total during the period. In 2020, the bank updated its internal controls, monitoring, and training frameworks to maintain trade governance, pricing transparency, and compliance principles.
