The Office of Comptroller of the Currency (OCC
) apparently warned J.P. Morgan[profile]
a year ago that it had wrongfully advised retirement plan participants to invest in in-house investment products, OnWallStreet
's Jeff Horwitz revealed. The non-compliance with in-house financial products happened in late 2011, OCC examiners said according to Horwitz' anonymous source.
J.P. Morgan has declined to comment to the pub specifically on the asset management conflicts. Yet J.P. Morgan Asset Management spokesman Darin Oduye made broader comments to OnWallStreet
Our business model is to offer both JP Morgan and third party products," Oduyoye said in an email. "We are proud of our platform and it is why many clients come to us for advice. We think it's best to be able to offer clients a broad selection of products to prepare a balanced portfolio.
In the worst case scenario, J.P. Morgan will have to pay restitution but friction between J.P. Morgan and the OCC is increasing, Horwitz writes. The bank has continued to expand its proprietary management business despite criticism from regulators who may have a chip on their shoulder after allegations of lax oversight of the financial crisis.
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