JPMorgan Chase Fined S$2.4 Million by Singapore’s Central Bank for Misconduct
On Monday, Singapore’s Monetary Authority (MAS) announced that it has fined JPMorgan Chase S$2.4 million (approximately $1.79 million) for failing to prevent misconduct by its relationship managers. The fine follows the discovery of 24 instances in which JPMorgan’s relationship managers provided inaccurate or incomplete information to clients during over-the-counter bond transactions, charging clients spreads above the agreed-upon rates.
MAS revealed that the bank lacked adequate processes and controls to ensure that relationship managers adhered to pre-agreed spreads with clients. JPMorgan Chase admitted liability for its failure to prevent or detect the misconduct, and the fine was paid to MAS.
In response, JPMorgan Chase has refunded the affected clients for the overcharged fees and implemented measures to enhance its pricing frameworks and internal controls to prevent similar incidents in the future. The bank emphasized that the issue represented only a small portion of the total trades processed during the related period.
JPMorgan also highlighted that, following an internal review in 2020, it undertook comprehensive updates to its internal controls, monitoring, and training to ensure better governance, pricing transparency, and compliance. The central bank has also indicated it is investigating the individual relationship managers involved in the misconduct.
JPMorgan Chase’s swift response and efforts to enhance internal practices demonstrate its commitment to upholding financial integrity.
