JP Morgan has been fined €1.6m by the Central Bank of Ireland over regulatory failures in the country.

The central bank penalised the American banking giant’s JP Morgan Administration Services (Ireland) for four breaches related to outsourcing fund administration activities.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

JP Morgan failed to procure necessary prior approvals to outsource fund administration activities. It also failed to have adequate control systems to fulfil Ireland’s outsourcing requirements.

The lender admitted the breaches for a varying period from seven months to two years and 11 months. All these failures were between July 2013 and June 2016.

The central bank determined that the ‘appropriate fine’ for the branches was €2.29m. However, the figure was reduced by 30% in accordance with the settlement discount scheme.

Central Bank Enforcement and Anti-Money Laundering director Seána Cunningham said: “Outsourcing plays a key role in the provision of regulated financial services and it is vital that regulated firms can demonstrate a clear understanding of their outsourcing arrangements, the associated risks and the effectiveness of the governance and risk management measures in place in respect of those arrangements.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“This is the first enforcement action taken by the Central Bank against a fund administration firm in relation to outsourcing failures.

“When firms outsource activities, they do not outsource their responsibilities. It is important for firms to have strong controls in place around the governance and oversight of all outsourcing arrangements to ensure that they comply with all legal and regulatory requirements.”

Last month, Central Bank of Ireland fined Permanent TSB €21m for tracker mortgage breaches.