SOW: Ex-J.P. Morgan broker: Firm pushed house funds

Some things never change

via Ex-J.P. Morgan broker: Firm pushed house funds.

I published Secrets of the Wirehouse over a decade ago, it seems not a lot has changed:



“They have a supervisory system, which seems to flag the nonproprietary products and requires reps to jump through all sorts of hoops that they wouldnt [by selling] a J.P. Morgan product,” Mr. Aidikoff said.Mr. Tchan also claimed that the bank brokerage used financial planning software to direct clients into proprietary products.Mr. Tchan claims that a few weeks after he complained about the supervisory system last fall, his direct supervisor and a compliance official confronted him about switches he made from proprietary stock mutual funds into nonproprietary bond funds.In his claim, Mr. Tchan said that the trades were done to make his clients portfolios more consistent with their objectives, but that his supervisors did not believe him and “implied he would be terminated.”



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