JPMorgan Asset Management has received a dressing down from Japan’s Financial Services Agency, which claims the firm violated financial laws in connection with the management of client assets through discretionary-investment agreements, Dow Jones Newswires reports. The FSA, in ordering the JPMorgan unit to clean up its business operations, says a dealer at the firm allegedly misplaced foreign-exchange orders, which the agency claims resulted in monetary losses to the clients. The FSA also claims that the firm violated the law by allegedly lending money to clients.
In a statement, JPMorgan says it “takes this matter very seriously” and is fully committed to strengthening internal-control systems. This was the second brush with the FSA in March for JPMorgan. Earlier in the month, the agency punished JPMorgan Securities Asia‘s Tokyo branch for allegedly manipulating stock futures contracts and failing to provide sufficient corporate-bond information to customers.
