The Monetary Authority of Singapore (MAS) has imposed a civil penalty of USD2.4m on JPMorgan Chase Bank, N.A., for failing to prevent and detect misconduct by its relationship managers (RMs) in 24 over-the-counter (OTC) bond transactions. The RMs made inaccurate or incomplete disclosures to clients, resulting in spreads charged above the bilaterally agreed rates.
MAS’s investigation revealed that JPMorgan’s RMs misrepresented price components or omitted material information about the spreads, violating sections 201(c) and 201(d) of the Securities and Futures Act (SFA). The bank admitted liability under section 236C of the SFA and has refunded the overcharged fees to affected clients. JPMorgan has since enhanced its pricing frameworks and internal controls to prevent future occurrences. MAS continues to review the conduct of the individual RMs involved.