JP Morgan Policy Allegedly Conflicted with Best Interest of Customers

by InvestorLawyers on June 20, 2013

in Arbitration,FINRA,J.P. Morgan,Mutual Funds,Securities Fraud,Suitability

Investment fraud lawyers are currently investigating claims on behalf of customers of JP Morgan Securities LLC. At issue is whether the customers received recommendations that were unsuitable or not in their best interest because of a JP Morgan policy that conflicted with brokers’ responsibilities to their customers.

JP Morgan Policy Allegedly Conflicted with Best Interest of Customers

According to a securities arbitration claim filed by a former JP Morgan broker, the firm allegedly “had a policy to only recommend in-house product to customers, irrespective of whether that product was the best choice for customers to meet their investment objectives.” Furthermore, the firm continued to discourage the selling of outside products by allegedly making it difficult for brokers to collect commissions and fees for those products. In addition, the claim alleges that the firm’s continuing insistence on the sales of proprietary mutual funds created a perpetual conflict between the firm’s policies and a broker’s responsibility to his or her clients.

Financial Industry Regulatory Authority rules have established that firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.  The alleged practices of JP Morgan would have discouraged and/or made it difficult for brokers to act in the best interest of their clients.

If you are a JP Morgan customer and you received an unsuitable recommendation of a proprietary mutual fund, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.

 

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