The market watchdog accused the lender for not adopting adequate measures and controls to correct the problem for two years, until the deficiencies was highlighted by FCA.
Without having sufficient information and supervision tools to recognize and deal with these shortcomings, the bank was executing wealth management businesses of clients thus putting customers’ wealth at risk.
The bank neither updated records of clients nor maintained important client suitability information such as client objectives, capacity for loss and investment experience.
Its computer-based record system was not able to contain sufficient information and that its suitability reports didn’t have adequate statements about client demands and needs.
Further, JPMIB also failed to place adequate risk and compliance monitoring and oversight of its business, claims the British market regulatory agency.
FCA enforcement and financial crime director Tracey McDermott said, "No matter who they are, customers of wealth managers should be able to expect the firm to keep complete, up to date client records so that they can give the right advice.
"Firms which fail to keep the right records expose their clients to the risk of inappropriate investments and have no way of checking whether their advice has been appropriate."
The bank has implemented necessary systems and controls to comply with the regulations and to resolve the issues and improve its systems.
