JPMorgan Chase Fined $250M for Poor Internal Controls in Fiduciary Business
The U.S. Office of the Comptroller of the Currency (OCC) is fining JPMorgan Chase (NYSE: JPM) $250 million for having poor risk management practices and internal controls relating to its fiduciary activities.
The consent order states that JPMorgan, America's largest bank, had an "insufficient audit program" as well as "deficient risk management practices and an insufficient framework for avoiding conflicts of interest."
By saying fiduciary activity, the OCC is likely referencing JPMorgan's asset and wealth management division, but it's a bit unclear which one specifically. According to the consent order, JPMorgan Chase operates one of the most complex fiduciary businesses in the world, with total fiduciary assets (meaning those invested on behalf of clients) of $1.3 trillion.
Source Fool.com
