JPMorgan Chase & Co (JPMorgan) is under investigation by the Securities and Exchange Commission (SEC) about a potential conflict of interest and breach of fiduciary duty with respect to its sales of mutual funds and other proprietary products.
According to InvestmentNews, JPMorgan received subpoenas and inquiries from the SEC and other government authorities about the firm’s sale and recommendations of mutual funds and other proprietary investment products in its wealth management business. At question is the alleged breach of fiduciary duty, which requires that financial advisors put their customers’ best interests ahead of their own.
Bloomberg reported in March that the SEC’s enforcement division is investigating whether JPMorgan “adopted a strategy that uses bonuses and other incentives to encourage their financial advisers to steer clients improperly into in-house funds, structured notes and other investments that generate fees for the bank.”
Brokerage firms and their financial advisors have a fiduciary duty to make sure that the investments they recommend are suitable for the investor and that the investment is appropriate in light of the investor’s actual age, investment experience, investment objectives, tax and financial condition. If the brokerage firm and its advisors fail in fulfilling this fiduciary duty, investors have the right to recover their investment losses by filing an arbitration claim.
Have you suffered losses in your JPMorgan investment account? Did you purchase a JPMorgan mutual fund that was unsuitable for you given your investment objectives? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 33 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.