J.P. Morgan Securities find £33.3 million
The UK arm of US banking giant J.P. Morgan securities has been hit with a £33.3 million after the company was found for mixed client money with company money. This is one of the basic rules of the FSA, that kind of money and company money must be kept separate at all times although it appears problems have occurred between November 2002 and July 2009.
It is believed issues arose because of the merger of J.P. Morgan and Chase although money owned by clients of the J.P. Morgan securities futures and options arm, ranging from US$1.9 billion to US$23 billion over the period in question, had inadvertently been held in and then segregated bank account. The level of J.P. Morgan Chase Bank company funds held in the bank account at the same time is unclear but what is clear is that client's money was effectively put at risk.
The FSA arrived at the £33.3 million fine based upon an equivalent equal to 1% of the unsegregated client accounts money held with the company's own money. While dishing out the large fine the FSA also confirmed that no clients all of J.P. Morgan Securities suffered as a consequence of the issues which led to the penalty.
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