The UK financial markets regulator FSA has announced that investment bank JP Morgan has been fined a record £33.3 million ($48.2 million) for failing to protect its clients’ money.
JP Morgan was penalized for not separating its clients’ money from its own funds over a period of seven years, the FSA stated. Margaret Cole, the director of law enforcement and financial crime suppression at the FSA, called this error a serious violation of FSA regulations aimed at protecting clients from losses in the event of the bank’s insolvency. "This fine sends a strong message to companies of all sizes that they must ensure their clients’ money is separated in accordance with FSA regulations," she said, adding that several other companies are currently under investigation. JP Morgan acknowledged the error after it was discovered and cooperated with regulators throughout the investigation, the FSA emphasized. The bank’s improper conduct was not intentional and no client suffered a loss, so the initially imposed fine of £47.6 million was reduced by 30%. (H)
