JPMorgan Questioned on Private Bank’s Hedge Fund Disclosures
ByJPMorgan Chase & Co. said authorities are examining what its wealth management businesses and private bank told customers when selling them the company’s own investment products and enlisting hedge funds.
The firm, in a regulatory filing Monday, disclosed more detail about inquiries and subpoenas from the U.S. Securities and Exchange Commission and other government authorities looking at how the company steers clients into investments. JPMorgan had said in May that regulators were examining sales of its own investment products, such as mutual funds.
On Monday, JPMorgan said authorities have asked about how it disclosed conflicts during those sales, and what its private bank told clients about the use of hedge funds that paid placement-agent fees to the firm’s broker-dealer affiliates. It didn’t elaborate. Placement agents typically help asset managers such as hedge funds win mandates to oversee money for big investors…
JPMorgan Questioned on Private Bank’s Hedge Fund Disclosures
