July 27 JPMorgan Chase & Co executives
have faced regulators' questions on whether private bank
advisors guide clients to buy the firm's own financial products,
according to a report in the Wall Street Journal.
As a result of the questioning regarding potential conflicts
of interest, the New York-based bank has sharpened its
disclosures to clients, the newspaper said, citing sources.
The Office of the Comptroller of the Currency, one of JP
Morgan's regulators, has been in discussions with the bank
regarding the potential conflicts of interest in recent months,
according to the report. The matter may still be open, the
"Being transparent is part of our normal course of business
and it's what drives our client communications," Darin Oduyoye,
a spokesman for JP Morgan's asset-management unit, told Reuters
If brokers push clients to buy the in-house brand of
financial product, rather than provide impartial financial
advice, the bank could stand to benefit at the expense of the
JP Morgan's Private Bank advisors are paid salary and bonus,
not commission, Oduyoye said.
The Office of the Comptroller of the Currency did not
immediately respond to a request for comment.
(Reporting By Mike Stone; Editing by Andrea Ricci)