Singapore’s central bank said on Monday it fined US lender JPMorgan Chase S$2.4 million ($1.79 million) for failing to prevent and detect misconduct committed by its relationship managers.
The Monetary Authority of Singapore (MAS) said JPMorgan’s relationship managers provided inaccurate or incomplete information to clients in 24 instances of over-the-counter bond transactions, charging them spreads above the agreed rates.
MAS said in a statement that JPMorgan Chase did not have adequate processes and controls to ensure that relationship managers adhered to pre-agreed spreads with clients.
The central bank said the bank had admitted liability for its failure to prevent or detect the misconduct and had paid MAS the civil penalty.
“The bank has refunded the overcharged fees to affected clients. The bank has also enhanced its pricing frameworks and internal controls to prevent the recurrence of such misconduct,” MAS said.
JPMorgan Chase said in a statement it was pleased the matter had been resolved and that it “represents a very small portion of the total trades processed during the related period”.
“In 2020, after completing our internal review, JPMorgan Private Bank undertook a comprehensive update to its internal controls, monitoring and training framework to ensure our trade governance, pricing transparency and compliance principles continue to be upheld,” the U.S. lender said.
MAS said it was also looking into the individual relationship managers involved in the misconduct.
