Monetary Authority of Singapore Fines JPMorgan Over Inaccurate Disclosures

Core Points - The Monetary Authority of Singapore (MAS) imposed a civil penalty of SGD 2.4 million (approximately USD 1.8 million) on JPMorgan Chase Bank for misconduct by its relationship managers [1] - The MAS found 24 over-the-counter (OTC) bond transactions where JPMorgan's relationship managers made inaccurate or incomplete disclosures to clients [1][2] - JPMorgan's practice involved charging clients a spread over interbank prices, which were not available to clients, leading them to rely on the relationship managers' representations [2] - The relationship managers failed to inform clients that the spreads charged were above the agreed rates [2] - JPMorgan stated that the instances cited by the MAS represent a very small portion of total trades processed at that time [3] - Following an internal review in 2020, JPMorgan Private Bank updated its internal controls, monitoring, and training framework to enhance trade governance and pricing transparency [4] - The MAS noted that JPMorgan refunded overcharged fees to clients and improved its pricing frameworks and internal controls [4] - Separately, the SEC announced that two affiliates of JPMorgan agreed to pay a combined USD 151 million in civil penalties and voluntary payments to settle enforcement actions [5] - The SEC's actions against JPMorgan affiliates involved allegations of misleading disclosures, breach of fiduciary duty, and failures to act in the best interests of customers [6]