SINGAPORE - Regulators reprimanded the Singapore branch of JP Morgan Chase Bank on Wednesday, for contravening the Financial Advisers Act (FAA) and the Securities and Futures Act (SFA).
JP Morgan had contravened the section of the FAA which forbids financial institutions from allowing any individual to provide any type of financial advisory service on its behalf, unless the person is an appointed or provisional representative in respect of that type of financial advisory service.
JP Morgan had contravened a section of the SFA with a similar rule.
That is, a financial institution should not permit any individual to carry on business in any type of regulated activity on its behalf unless the individual is an appointed, provisional or temporary representative in respect of that type of regulated activity.
JP Morgan had permitted two representatives, neither of whom were appointed or provisional representatives, to provide such financial advisory service.
These two individuals advised others, "either directly or through publications or writings, and whether in electronic, print or other form", concerning structured deposits on JP Morgan's behalf.
This took place from Nov 26, 2010 to Jan 16, 2013, the Monetary Authority of Singapore (MAS) said in a statement yesterday.
JPMorgan had also contravened the SFA by allowing four representatives, who were also not appointed, provisional or temporary representatives, to carry out the regulated activities of dealing in securities and fund management on its behalf during this same period, the MAS added.
"All financial institutions should have robust systems and controls to ensure that they do not permit any individual to conduct any type of financial advisory service under the FAA or regulated activity under the SFA on their behalf, unless the individual is an appointed or provisional representative in respect of that type of financial advisory service or an appointed, provisional or temporary representative in respect of that type of regulated activity," the MAS said.
