JPMorgan Fined $1.79 Million by Singapore Regulator for Overcharging Clients in Bond Transactions

JPMorgan Chase is facing a $1.79 million penalty for overcharging clients in Singapore.

The Monetary Authority of Singapore (MAS) has stated that the bank admitted its fault. They failed to detect and stop misconduct by their relationship managers.

These managers provided clients with incorrect information during 24 over-the-counter bond transactions. As a result, customers ended up paying more than they should have.

According to MAS, JPMorgan didn’t have a proper system to ensure that its managers followed the agreed client spread rules.

The bank has refunded the overcharged fees to the affected clients. They have also improved their pricing frameworks and internal controls to prevent this from happening again.

JPMorgan mentioned that this issue affected a “very small” percentage of their total trades.

In 2020, after completing an internal review, JPMorgan Private Bank made significant updates to its internal controls, monitoring, and training framework. This was done to ensure that their trade governance, pricing transparency, and compliance principles are upheld.