The UK’s Financial Services Authority has fined JP Morgan Securities £33.3m for failing to keep client money in its futures and options business separate from the bank’s own funds. The fine is the largest ever meted out by the regulator.
The FSA has revealed that, over a period of nearly seven years (November 1 2002 until July 8 2009), the bank’s securities segment failed to segregate client monies from those held by JP Morgan Chase Bank NA, the bank’s private banking and wealth management division.
The error dates back to the 2000 merger between investment bank...