JPMorgan Chase pays $250 million penalty over weak controls in its wealth management division

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JPMorgan Chase agreed on Tuesday that a US regulator had to pay a $ 250 million fine after finding “a pattern of malpractice” in its property and wealth management division.

The Office of the Comptroller of the Currency said in a release that the New York-based bank’s risk management controls were “lacking” and that the firm could not avoid a “conflict of interest” in the business.

The OCC said in a consent order, “For many years, the bank maintained a weak management and control framework for its ironic activities and inadequate audit schedules, and inadequate internal controls.”

However, the bank neither accepted nor denied the allegations, and the OCC stated that JPMorgan had already rectified the deficiencies that led to the fine. There was no mention in the order that the bank’s actions had caused financial losses to its customers.

A bank spokesperson said, “We are committed to providing best-in-class control to our business, and we have significantly invested and enhanced our platform over the past several years in our control platform.”

It was the second time in two months that the bank had agreed to pay a large-scale settlement to US regulators on how it operated the business. In late September, JPMorgan agreed to pay $ 920 million to settle investigations from three federal agencies over their role in manipulation of global markets for metals and the US Treasury.

JPMorgan hinted that a penalty could be in place earlier this month, but neither the bank nor the regulator gave more detail on the potential mess and conflict of interest that led to the fine. In late 2015, JPMorgan agreed to pay a fine of more than $ 300 million after the Securities and Exchange Commission failed to disclose that it put some customers in high-fee products made by the firm gave.

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