JP Morgan Scandal
The Financial Supervisory Service said on November 14 that it has taken disciplinary measures against the Seoul branch of JPMorgan for disclosing its clients’ deal information without their consent.
According to the Korean financial watchdog, the local office of the US investment bank provided, without its clients’ consent, confidential information of its clients’ trades between July 2009 and October 2012 to their 79 executives in over six of its overseas affiliates.
They also provided the information to 65 institutional investors online, over a total of 1,705 times during the cited period.
The FSS imposed an institutional warning on the investment bank and forewarned four of the executives involved in the scandal along with a penalty of 37.5 million won (US$35,151).
The FSS has also revealed that JP Morgan Securities in Seoul provided information on large-scale stock purchases from other clients to about 79 institutional investors before they were released on the market.