JPMorgan Chase executives have been questioned by American regulators in recent on whether private bank advisors guide clients to buy the firm’s own financial products, according to a report published in the Wall Street Journal.
As a result of the questioning regarding potential conflicts of interest, the bank has sharpened its disclosures to clients, the publication reported citing undisclosed sources.
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The latest changes were set in motion several months ago when the Office of the Comptroller of the Currency, one of JPMorgan’s primary regulators, began asking officials at the firm about the percentage of clients’ assets that were being directed to JPMorgan’s own funds and products instead of third-party options, the sources revealed.
According to the report, the OCC raised its questions in weekly and quarterly meetings with bank executives. The regulator routinely monitors banks’ sales of in-house financial products to clients.
"Being transparent is part of our normal course of business and it’s what drives our client communications," said Darin Oduyoye, a spokesman for JPMorgan’s asset-management unit.
However, it is not known how big a percentage of client assets resides in JPMorgan financial products.
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By GlobalDataIt also isn’t clear whether regulators consider the matter fully closed.
