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SEC Investigating JPMorgan Over Potentially Improper Proprietary Fund Sales, Fiduciary Standard Violations

Attorney Advising Disclaimer

The Securities & Exchange Commission along with other regulators are looking into JPMorgan Chase & Co.'s use of proprietary products according to filings submitted by the firm to the SEC.

According to JPMorgan's self-filed notice regarding litigation and legal proceedings, the firm is a party to multiple proceedings, which include not just private civil litigations, but regulatory/government investigations as well.

Notable actions in which JPMorgan is listed as either a defendant or subject of investigation include investment management litigation, LIBOR and other benchmark rate investigations in which some plaintiffs have accused JPMorgan and other notable Wall Street firms of manipulating currency exchange rates, mortgage-backed securities investigations, and proprietary products investigations.

As the subject of the proprietary products investigation, JPMorgan received several information requests and subpoenas from the SEC and other like agencies and regulators regarding JPMorgan's sales of mutual funds and other proprietary products in its wealth management business.

According to Bloomberg, the SEC is trying to determine whether JPMorgan improperly encouraged its financial advisers to sell customers structured notes and in-house products, such as the J.P. Morgan Mutual Fund, by offering the advisers incentives and bonuses for keeping the sales in-house, which would be financially beneficial for the firm but not necessarily for its clients.

If it violated its obligations to put clients' financial interests ahead of its own, JPMorgan may likely have failed to meet the industry's fiduciary standard regarding investments and wealth management.

If you have invested with JPMorgan Chase or with any broker, financial adviser or firm whose recommendations or actions regarding proprietary products or other securities have been beneficial for the firm/representative at the expense of your interests, and in failing to meet this fiduciary standard, these actions have proven harmful to your investments, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

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