MAS Reprimands JPMorgan Chase Bank, N.A., Singapore Branch for Contraventions of Section 23B(3)(a) of the Financial Advisers Act (Cap. 110) ["FAA"] and Section 99B(3)(a) of the Securities and Futures Act (Cap. 289) ["SFA"]

1       On 24 December 2014, MAS reprimanded JPMorgan Chase Bank, N.A., Singapore Branch [“JPMorgan”] for contraventions of section 23B(3)(a) of the FAA and section 99B(3)(a) of the SFA.

2       Section 23B(3)(a) of the FAA stipulates that a principal shall not permit any individual to provide any type of financial advisory service on its behalf unless the individual is an appointed or provisional representative in respect of that type of financial advisory service.  Section 99B(3)(a) of the SFA stipulates that a principal shall 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.

3       JPMorgan has contravened section 23(B)(3)(a) of the FAA as it had permitted two representatives, who were not appointed or provisional representatives, to provide the financial advisory service of advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning structured deposits,  on its behalf from 26 November 2010 to 16 January 2013.  JPMorgan has contravened section 99B(3) of the SFA as it had permitted four representatives, who were not appointed, provisional or temporary  representatives, to carry out the regulated activities of dealing in securities and fund management, on its behalf from 26 November 2010 to 16 January 2013.

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.

Last Modified on 26/11/2016