Director of Enforcement and Financial Crime at the FCA, Tracy McDermott, said wealth managers were expected to ensure that records are up-to-date and complete at all times as any failure could lead to the wrong advice being given.
The FCA said JP Morgan International had failed to update its records over a two year period. However, the bank admitted to discovering deficiencies after conducting its own investigation into the matter.
Because the bank agreed to settle with the regulators the fine was reduced by 30 per cent. The poor record keeping was also found not to have materially affected any clients. The FCA also said it was satisfied that the failings had been addressed and improved systems introduced.
In November a similar investigation by British regulators found that Savoy Asset Management Ltd was also failing to manage its portfolios adequately. The company was fined £412,000.