JPMORGAN Chase Bank has paid a S$2.4 million civil penalty to the Monetary Authority of Singapore (MAS) for its failure to prevent and detect misconduct by its relationship managers (RMs).

On Monday (Dec 2), MAS said the RMs had provided clients with “inaccurate or incomplete disclosures” which resulted in these clients being charged spreads above bilaterally agreed rates for 24 over-the-counter bond transactions.

The transactions took place between November 2018 and September 2019. They represent a “very small portion” of the total trades processed by the bank, said JPMorgan.

JPMorgan charges clients a spread over the interbank prices, which were unavailable to clients. As a result, the clients had to rely on the RMs’ representations regarding the prices and spreads, said MAS.

The lender’s RMs were said to have misrepresented the price components in the 24 transactions. They also omitted material information that the spreads charged were above the agreed rates.

Both actions by JPMorgan’s RMs were deemed offences under the Securities and Futures Act.

Following the central bank’s review of pricing and disclosure practices in the private banking industry, MAS investigations found that JPMorgan had al...