JP Morgan slapped with $900k fine for overcharging clients

Clients were overcharged $7.8 million for clearing and exchange services, according to the CFTC.

JP Morgan has been handed a fine of $900,000 by US regulators for overcharging clients for clearing and exchange services.

The Commodity Futures Trading Commission (CFTC) found JP Morgan failed to supervise the processing of exchange and clearing fees it charged customers for trading Chicago Mercantile Exchange (CME) products.

JP Morgan did not have adequate systems for reconciling invoices from exchange clearinghouses, which was largely manual and carried out by one employee.

“In addition to insufficient staff to complete the fee reconciliation process accurately, [JP Morgan] did not have adequate written policies and procedures in place regarding its clearing and exchange fee reconciliations,” the US regulator said.

The CFTC said some clients were overcharged by an aggregate amount of around $7.8 million between 2010 and 2014.

In August last year, Barclays was fined $800,000 for similar offences regarding fees for clearing and exchange services.

Bank of America Merrill lynch was fined $1.2 million by the CFTC in 2014 for failing to supervise and process futures exchange and clearing fees.