The U.S. Office of the Comptroller of the Currency is fining JPMorgan Chase $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.
But at the end of the third quarter, JPMorgan Chase reported roughly $2.6 trillion in assets under its asset and wealth management division, which it lumps together on its balance sheet and quarterly filings. CNBC reports that the issues mentioned in the consent order relate to the bank’s wealth management division.
The consent order states that the bank neither denies nor admits to the OCC’s allegations, and that the bank has corrected the issues that initially led to this order.
