Source: Financial Advisor
JPMorgan’s broker-dealer and custodian have been fined more than $1 million for supervisory and operational failures related to record keeping, Finra reports.
The regulator has fined J.P. Morgan Securities $775,000, and J.P. Morgan Clearing Corp. $250,000, for failing to provide certain information to customers in two segments of the bank’s global wealth management unit during various times between 2006 and 2014, Finra says in its disciplinary action document.
J.P. Morgan Securities, a brokerage, allegedly failed to send investment objective letters to more than 3,000 JPMorgan Global Wealth Management clients from 2006 to 2012, according to the regulator.
From 2009 through 2013 the firm also allegedly failed to send copies of account records within 30 days of account opening to more than 1,300 Private Bank customers, and from 2007 through 2014, the company failed to deliver transaction confirmations to more than 7,000 Private Bank customers.
The firm also allegedly failed to properly monitor outside brokerage accounts of close to 2,000 of its employees and preserve certain customer correspondence, according to the regulator.
The custodian J.P. Morgan Clearing Corp., meanwhile, allegedly failed to send annual privacy notices from 2011 to 2013, affecting more than 965,000 account holders in 2013, according to Finra.