Mubasher: Ireland’s central bank on Wednesday said it fined an Irish subsidiary of JP Morgan EUR 1.6 million ($1.8 million) for “serious failings” relating to the firm’s fund administration activities.

This was the first action taken against a fund administration firm in relation to outsourcing failures, the central bank enforcement director Seána Cunningham said.

The fine came after the US banking giant admitted to four breaches of regulations between 2013 and 2016, including failure to receive prior approval from the central bank.

In addition, JP Morgan failed to have adequate control systems to ensure compliance with the Irish central bank’s outsourcing requirements for fund administers.

The appropriate fine was initially set as EUR 2.3 million, but it was reduced by 30% in accordance with the settlement discount stipulated in the Prudential Handbook for Investment Firms.

In response, JPMorgan stated that it “cooperated fully” with the central bank, while it carried out changes to its controls procedures in Ireland.