Important Information
For further details, please read the disclosures below.
The following policies and regulations are in relation to all European legal entities of J.P. Morgan
Introduction
The Common Reporting Standard (“CRS”) is a global tax transparency and reporting regime designed for the automatic exchange of information (“AEI”) between tax authorities, developed by the Organization for Economic Cooperation and Development (“OECD”) to combat tax evasion.
It requires reporting financial institutions that are located in a participating jurisdiction (i.e. a jurisdiction that has implemented CRS) to comply with certain identification and reporting requirements.
CRS came into effect in certain jurisdictions from 1 January 2016 (so called “first adopter jurisdictions”) with the first reporting made during the year 2017. Other jurisdictions decided to implement CRS one year after (so called “late adopter jurisdictions”), with the first reporting to be made during the year 2018.
Implications for Clients
Financial Institutions located in CRS participating jurisdictions are required to determine whether clients/account holders (including controlling persons of certain types of entity account holders) are reportable either by collecting information through a self-certification document or, in the case of accounts opened before the implementation of the CRS, by reviewing the information previously collected.
Further to the due diligence process described above, where the client/account holder is tax resident in a reportable jurisdiction the financial institution will report its personal and financial information to the Tax Authorities of the jurisdiction where the financial institution is located. The Tax Authorities will then exchange the information received from the financial institution with the Tax Authorities of the jurisdiction of tax residence of the client/account holder.
The list of reportable jurisdictions is determined by the jurisdiction in which the financial institution is located.
CRS implementation in Switzerland
Switzerland adopted the CRS by enacting the Federal Act on the International Automatic Exchange of Information in Tax Matters (or “AEI Act”) on 18 December 2015 with an implementation date of 1 January 2017. That means the first period in which financial accounts are reportable in Switzerland is 1 January 2017 to 31 December 2017 with the first reporting to be made by 30 June 2018.
The list of Reportable Jurisdictions, i.e. of Jurisdictions with which Switzerland will exchange information can be found at the following address, which is kept up to date by the Swiss Tax Authorities:
Please note that the exchange of information under CRS will be performed annually.
For more detailed information about CRS and the account information that will be exchanged, please contact your J.P. Morgan representative.
List of Participating Jurisdictions
List of jurisdictions that are participating to CRS: https://www.oecd.org/tax/transparency/AEOI-commitments.pdf
In accordance with the requirements of the Markets in Financial Instruments Directive (2014/65/EU) and associated regulatory technical standards, J.P. Morgan Bank SE (JPMSE) is required to meet certain obligations in relation to what is called Best Execution. Best Execution relates to the way in which we execute, place or transmit orders on our clients' behalf.
A description of the approach taken by J.P. Morgan to achieve Best Execution when executing or transmitting client orders is available here.
The information explains the strategies and tools used by JPMSE to effect and assess the quality of execution of transactions in the asset classes listed.
Should you have any questions, please do not hesitate to contact your J.P. Morgan representative.
The new Payment Services Directive (PSD2) which came into effect on 13 January 2018, is a European legislation which aims to improve and encourage safer and innovative payment services across the European Union (EU).
What you need to know
The original PSD legislation of 2007 established a single market for payments in the EU, and encouraged the ease and efficiency of cross-border payments. Since 2007, changes and modernisation in the payments sector has heralded an update to the original scope of PSD.
The new directive represents a step further towards complete harmonisation of the EU payments market. For further information on the new legislation and its enhanced features, please refer to the Frequently Asked Questions on the European Commission website.
Effective from 1 January 2018, the PRIIPs Regulation requires the creation of a of a Key Information Document for certain product types.
The Key Information Documents aim to help you understand the nature, risks, costs, potential gains and losses of a product. The Key Information Documents are also intended to give more clarity to the key features of a product, so that you can compare it to other products.
Should you have any questions, please do not hesitate to contact your J.P. Morgan representative.
FX Forwards – 6 months
FX Options – 3 months
Effective 22 January 2022
This Notice is issued by JPMorgan Chase & Co. on behalf of itself, its branches, its subsidiaries and its affiliates, identified as Controllers in the table in Section 13 below (together, "J.P. Morgan", "we", "us" or "our") and is addressed to individuals outside our organisation with whom we interact, including visitors to our websites (our "Sites"), customers, Personnel of corporate customers and vendors, and other recipients of our services (together, "you"). Defined terms used in this Notice are explained in Section 14 below.
This Notice may be amended or updated from time to time to reflect changes in our practices with respect to the Processing of Personal Data, or changes in applicable law. We encourage you to read this Notice carefully, and to regularly check this page to review any changes we might make in accordance with the terms of this Notice.
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Introduction
This policy sets out how we integrate shareholder engagement into our investment strategy when managing client portfolios under a discretionary investment mandate. In accordance with such mandates we, J.P. Morgan S.E. (“JPMSE” and including our branches, “J.P. Morgan Private Bank”) may invest directly in shares issued by companies with their registered office in an EU member state and whose shares are admitted to trading on a regulated market situated or operating within an EU member state.
J.P. Morgan Private Bank typically invests in shares indirectly via third party managed portfolios (i.e. mutual funds and exchange traded funds) and also invests in shares directly via separately managed accounts in relation to which a third party investment advisor is appointed (together “Third Party Portfolios”).
J.P. Morgan Private Bank has also delegated the investment management of certain discretionary portfolios in shares to J.P. Morgan Asset Management (UK) Limited (“JPMAM”) or third party Asset Managers. This engagement policy only applies to engagement activities directly carried out by J.P. Morgan Private Bank.
For information on JPMAM’s approach to engagement please see the JPMAM website: https://am.jpmorgan.com/gb/en/asset-management/per/about-us/investment-stewardship/
How we monitor the companies that we invest in
J.P. Morgan Private Bank does not directly undertake monitoring of investee companies. However, J.P. Morgan Private Bank undertakes monitoring of Third Party Portfolios, including the approach of Third Party Portfolio advisors or managers (“Third Party Portfolio Managers”) to monitoring investee companies.
Prior to on-boarding a Third Party Portfolio, J.P. Morgan Private Bank undertakes a detailed due diligence exercise of qualitative and quantitative assessments that reviews, amongst other issues, the investment merits, Environmental Social and Governance (“ESG”) eligibility and principal adverse impact (“PAI”) considerations and priorities of the Third Party Portfolio. Information is collected and analyzed by due diligence teams until such time as the due diligence and portfolio management teams are satisfied that sufficient information has been received to meet J.P. Morgan Private Bank’s on-boarding criteria. Information is then presented to the Investment Review Committee, which decides whether to approve the relevant Third Party Portfolio.
Approved Third Party Portfolios are monitored periodically. The due diligence and portfolio management teams maintain a dialogue with Third Party Portfolio Managers, including a series of questions designed to assess and review the information previously provided. The due diligence and portfolio management teams regularly review collated information received about Third Party Portfolios and conduct interim assessments. These assessments include, but are not limited to, the Third Party Portfolio Manager’s implementation of the stated strategy, ESG eligibility (including review of information on ESG/PAIs), financial and non-financial performance and risk, capital structure and corporate governance, as well as the Third Party Portfolio Manager’s assessment of investee companies. From these reviews, a recommendation for watch, probation, termination or retention of approved status is made to the J.P. Morgan Private Bank Investment Performance Governance Committee. This Committee may challenge, and then either approve or reject, the recommendation.
How we engage with the companies that we invest in
J.P. Morgan Private Bank does not directly undertake shareholder engagement activities with investee companies (because of the nature of its private wealth business and client base). However, J.P. Morgan Private Bank engages with Third Party Portfolio Managers both before and during the period of investment as part of the selection and ongoing monitoring processes described above, including requesting information about Third Party Portfolio Managers’ approaches to engagement with investee companies.
Due diligence teams collect information on Third Party Portfolios via requests for information and questionnaires. These questionnaires may include requests for information on ESG integration and on engagement/stewardship, as well as other ad hoc or thematic questionnaires.
Voting rights and use of proxy voting advisors
At present, J.P. Morgan Private Bank does not exercise voting rights on behalf of clients. However, clients of JPMSE, Frankfurt branch, JPMSE, Milan branch and JPMSE, Madrid branch may exercise their votes on the shares they hold in their investment management account(s) with such branches.
In the future, the exercise of voting rights may be managed via external advisors (either external companies, affiliates or a combination thereof).
Actual or potential conflicts of interest
J.P. Morgan Private Bank’s policy on conflicts of interest applies to all of its engagement activities.
J.P. Morgan Private Bank Code statement
J.P. Morgan Bank SE and its branches ("J.P. Morgan Private Bank") is a member of the JPMorgan Chase & Co. group of companies ("JPMC Group"), an international, multi-service banking group. J.P. Morgan Private Bank provides a range of private banking services to its clients, including discretionary investment management.
Application of the Code
While the majority of J.P. Morgan Private Bank's clients are categorised as retail clients, or are natural persons, discretionary investment management is also carried out for some professional clients that are legal persons. This activity is therefore in scope of the UK Financial Reporting Council's Stewardship Code (the "Code"). This statement sets out J.P. Morgan Private Bank’s policy in relation to the Code [and is publicly available on its website].
Nature of commitment to the Code
J.P. Morgan Private Bank does not commit to the Code, although it does broadly support the Code’s aims of promoting the long-term success of companies in such a way that the providers of capital also prosper. With respect to discretionary investment management for professional clients in scope of the Code, J.P. Morgan Private Bank will generally not exercise voting rights. However, J.P. Morgan Private Bank may from time to time choose to exercise its discretion to vote in circumstances where it believes this to be in its clients' best interests. Any voting activity that J.P. Morgan Private Bank undertakes is treated as a strictly confidential matter between itself and its clients, and, accordingly, such activity will not be publicly disclosed.
J.P. Morgan Private Bank’s investment strategy
J.P. Morgan Private Bank's overall objective for its discretionary investment management service is to deliver risk-adjusted returns that are appropriate and commensurate with the financial goals and risk tolerances of its clients over time. J.P. Morgan Private Bank implements a holistic investment approach for its clients, and considers a range of assets when undertaking portfolio construction. Where the portfolio construction process determines that exposure to equities is required, this exposure will typically be through vehicles that are managed by JPMC Group or third-party investment managers, such as mutual funds or hedge funds. Each vehicle will be subject to due diligence by full-time specialist due diligence teams before it can be invested in by J.P. Morgan Private Bank portfolio managers, in a process that measures each vehicle against a broad range of attributes. This process has been designed to help deliver sustainable, risk-adjusted returns for J.P. Morgan Private Bank’s clients when investing in equities on a discretionary basis.
Date of publication: 10 March 2021
The Firm’s disciplined pay-for-performance framework focuses on Total Compensation – base salary and incentive pay - so that pay is commensurate with the overall performance of the Firm, respective businesses and individual performance. This includes a balanced discretionary approach to assess the employee’s performance throughout the year against four broad dimensions - business results, client/customer/stakeholder, teamwork and leadership, and risk, controls and conduct. These performance dimensions appropriately consider short, medium and long-term priorities that drive sustained shareholder value, while accounting for risk, controls, and conduct objectives. To promote a proper pay-for-performance alignment, the Firm does not assign relative weightings to these dimensions and also considers other relevant factors, including market practices. When conducting this balanced assessment of performance, for select employees in the Portfolio Management population, regard is given to the performance of relevant funds / strategies. Each Portfolio Manager’s performance is evaluated annually based on a number of factors, including, but not limited to:
- The primary consideration which is blended investment performance relative to the competitive indices or peers, with investment performance generally weighted more to the long term;
- individual contribution relative to the client’s risk and return objectives; and
- adherence with the Firm’s compliance, risk, regulatory and client fiduciary responsibilities including adherence to the sustainability risk policies
An individual performance assessment using the criteria above, in addition to the overall performance of the relevant business unit and investment team, is integrated into the final assessment of IC for an individual Portfolio Manager as part of the assessment of Business Results.
In relation to J.P. Morgan SE legal entity
J.P. Morgan operates a complaints management policy that aims to ensure all complaints are dealt with fairly, consistently and promptly.
Making a complaint
If you are unhappy with any aspect of the provision of our products or services, please contact your usual JP Morgan representative in the first instance. Alternatively, you may wish to contact our independent Complaints function:
- In writing by letter: IPB Employee and Client Experience Team, J.P. Morgan SE, 6 route de Treves, Building C, Senningerberg, LU-LU, L-2633, Luxembourg
- In writing by email: ipb.client.experience@jpmorgan.com
Handling your complaint
All complaints received will be handled by the International Private Bank’s (IPB) Employee and Client Experience Team, an independent office of J.P. Morgan which was not originally involved in the matter giving rise to your complaint.
Once we have received your complaint, we aim to resolve the matter as quickly as possible and in a consistent manner. Your complaint will be promptly acknowledged within a maximum of 10 business days from receipt. Throughout the investigatory process we will aim to keep you up to date with our progress and provide you with a final response as soon as practicable. You should receive a final response within one month of receipt of the complaint, however where this is not possible, you will be advised of this and given a likely resolution date.
In respect of complaints related to payment services, a final response will be sent within 15 business days after the day on which your complaint is received. In exceptional circumstances where a final response cannot be sent within this timeframe, you will receive a holding response by the end of 15 business days, clearly indicating the reasons for the delay and specifying the deadline by which a final response will be sent; which will be no later than 35 business days after the day on which your complaint was received.
Alternative Dispute Resolution
If you have not received a final response within the given timeframes or remain dissatisfied with our response, you may have the right to refer your complaint to the , free of charge within six months of your complaint resolution / final response. Further details; including eligibility, can be found on the website of the Ombusdman in financial conflicts: https://www.ombudsfin.be/fr/particuliers/introduire-une-plainte/
You can also contact the Ombudsman in Financial Conflictsin writing at:
Ombudsfin
North Gate II, Boulevard du Roi Albert II, n°8, bte. 2
1000 Bruxelles
Should you remain dissatisfied, you have the right to take civil action and may wish to seek independent legal advice on this.
J.P. Morgan maintains records of the complaints it receives and the measures taken for their resolution. A summary of this information is reported to the Financial Conduct Authority twice a year.
If you have any queries in relation to our internal complaint handling procedure, please contact the IPB Employee and Client Experience Team.
J.P. Morgan operates a Complaints Management Policy that aims to ensure all complaints are dealt with fairly, consistently and promptly.
Making a complaint
If you are unhappy with any aspect of the provision of our products or services, please contact your usual JP Morgan representative in the first instance. Alternatively, you may wish to contact our independent Complaints function:
- In writing by letter: IPB Employee and Client Experience Team, J.P. Morgan SE, 6 route de Treves, Building C, Senningerberg, LU-LU, L-2633, Luxembourg
- In writing by email: ipb.client.experience@jpmorgan.com
Please ensure you indicate your account number (where applicable), name, contact details and a brief description of your complaint.
Handling your complaint
All complaints received will be handled by the International Private Bank’s (IPB) Employee and Client Experience Team an independent office of J.P. Morgan which was not originally involved in the matter giving rise to your complaint.
Once we have received your complaint, we aim to resolve the matter as quickly as possible and in a consistent manner. Your complaint will be acknowledged promptly upon receipt. Throughout the investigatory process we will aim to keep you up to date with our progress and provide you with a final response as soon as practicable. You should receive a final response which will clearly set out our position within 8 weeks of receipt of the complaint. However, if we are unable to resolve your complaint within 8 weeks, we will contact you to advise why we require additional time and provide you with a likely resolution date. Please note that you may be able to refer your complaint to the FOS and other alternative dispute resolution regimes if the complaint has not been dealt with within 8 weeks.
In respect of complaints related to payment services, a final response will be sent within 15 business days after the day on which your complaint is received. In exceptional circumstances where a final response cannot be sent within this timeframe, you will receive a holding response by the end of 15 business days, clearly indicating the reasons for the delay and specifying the deadline by which a final response will be sent; which will be no later than 35 business days after the day on which your complaint was received.
Alternative Dispute Resolution
If you have not received a final response within the given timeframes or remain dissatisfied with our response, you may have the right to refer your complaint to the Financial Ombudsman Service (FOS), free of charge within six months of your complaint resolution / final response. Further details; including eligibility, can be found on the website of the Financial Ombudsman: http://www.financial-ombudsman.org.uk/.
You can also contact the FOS in writing at:
Financial Ombudsman Service, Exchange Tower, London E14 9SR.
Telephone: 0800 023 4567 or 0300 123 9123 or +44 (0)20 7964 0500
Email: complaint.info@financial-ombudsman.org.uk
In the event that you have any complaint which remains unresolved, in relation to the services we provide to you under these Private Client Terms, subject to General Term 13.7, and notwithstanding General Term 4.1, the following alternative dispute resolution regimes may also be available:
- As J.P. Morgan SE participates in the dispute resolution scheme run by the consumer arbitration body, you may have a right to refer your complaint to the German Private Banks’ Ombudsman (www.bankenombudsmann.de). Further details on the German Private Banks’ Ombudsman’s procedures are available on request or can be downloaded from www.bankenverband.de.
- In addition, you may have the right to refer your complaint to the BaFin out-of-court complaint resolution procedure, either by post, fax or email addressed to Bundesanstalt für Finanzdienstleistungsaufsicht, Graurheindorfer Straße 108, 53117 Bonn, Fax: +49 (0)228 4108-1550, email: poststelle@bafin.de or by using the online form available via www.bafin.de.
- Furthermore, the European Commission has set up a European Online Dispute Resolution platform (ODR platform) which is available via www.ec.europa.eu/consumers/odr. A consumer can use the ODR platform to settle a dispute out of court arising from an online contract with a company established in the EU.
Should you remain dissatisfied, you have the right to take civil action and may wish to seek independent legal advice on this.
J.P. Morgan maintains records of the complaints it receives and the measures taken for their resolution. A summary of this information is reported to the Financial Conduct Authority twice a year.
If you have any queries in relation to our internal complaint handling procedure, please contact the IPB Employee and Client Experience Team.
J.P. Morgan operates a Complaints Management Policy that aims to ensure all complaints are dealt with fairly, consistently and promptly.
Making a Complaint
If you are unhappy with any aspect of the provision of our products or services, please contact your usual JP Morgan representative in the first instance. Alternatively, you may wish to contact our independent Complaints function:
- In writing by letter: IPB Employee and Client Experience Team, J.P. Morgan SE, 6 route de Treves, Building C, Senningerberg, LU-LU, L-2633, Luxembourg
- In writing by email: ipb.client.experience@jpmorgan.com
Please ensure you indicate your account number (where applicable), name, contact details and a brief description of your complaint.
Handling your Complaint
All complaints received will be handled by the International Private Bank’s (IPB) Employee and Client Experience Team, an independent office of J.P. Morgan which was not originally involved in the matter giving rise to your complaint.
Once we have received your complaint, we aim to resolve the matter as quickly as possible and in a consistent manner. Your complaint will be promptly acknowledged within a maximum of 10 business days from receipt. Throughout the investigatory process we will aim to keep you up to date with our progress and provide you with a final response as soon as practicable. You should receive a final response within one month of receipt of the complaint, however where this is not possible, you will be advised of this and given a likely resolution date.
If you are still not satisfied with our response, you have the right to appeal directly to the senior management or executive of JPMSE – Luxembourg Branch; appropriate contact details will be provided in such instances.
In respect of complaints related to payment services, a final response will be sent within 15 business days after the day on which your complaint is received. In exceptional circumstances where a final response cannot be sent within this timeframe, you will receive a holding response by the end of 15 business days, clearly indicating the reasons for the delay and specifying the deadline by which a final response will be sent; which will be no later than 35 business days after the day on which your complaint was received.
Alternative Dispute Resolution
If within 10 business days after the receipt of your complaint, you have not received at least an acknowledgment of receipt or if within one month after having sent your complaint to you remain dissatisfied with our response, you can file a request for an out-of-court complaint resolution with the Commission de Surveillance du Secteur Financier (CSSF), acting in its capacity as the dispute resolution body in Luxembourg. This service is free of charge. Additional information such as the CSSF’s contact details, complaints procedure, blank complaints form can be found via their website: https://www.cssf.lu/en/customer-complaints/. Please note that requests filed to the CSSF must be done so within one year of the date of your complaint to us.
You have the right to take civil action on the matter and may wish to seek independent legal advice on this.
J.P. Morgan maintains records of the complaints it receives and the measures taken for their resolution. A summary of this information is also shared with CSSF on an annual basis.
If you have any queries in relation to our internal complaint handling procedure, please contact the IPB Employee and Client Experience Team.
Date of publication: 22 January, 2022
I. Principal Adverse Impacts of Investment Decisions
This document summarises J.P. Morgan SE’s (“JPMSE”) due diligence policies and procedures in respect of the principal adverse impacts (“PAI”) of our investment decisions on sustainability factors. JPMSE currently takes a principles-based approach to the identification and prioritisation of PAIs, and as set out below, is in the process of integrating a more comprehensive PAI framework into its discretionary management business.
This document is divided into four sections:
- Information about our policies on the identification and prioritisation of principal adverse sustainability impacts and indicators
- A description of the principal adverse sustainability impacts and of any actions taken or planned
- A brief summary of our shareholder engagement approach
- A reference to JPMorgan Chase’s adherence to responsible business conduct codes and internationally recognised standards for due diligence and reporting
The statement is published in accordance with Article 4 of the EU Sustainable Finance Disclosure Regulation (“SFDR”).
1. Information about JPMSE’s Principal Adverse Sustainability Impact policies
JPMSE has enhanced certain of its existing due diligence procedures to incorporate the identification and prioritisation of adverse sustainability impacts and indicators. Our procedures with regards to PAI address sustainability from the perspective of the negative effects that investment decisions might have on “sustainability factors”, being relevant environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. With regards to JPMSE’s discretionary management business, these procedures are part of a broader investment process which considers environmental, social and governance (“ESG”) risk management along with any positive impact of ESG decisions. Depending on the investment strategy, portfolio managers may choose to prioritise certain PAIs. Our future approach towards the prioritisation of PAIs will generally be based on JPMorgan Chase’s firm-wide ESG priorities.
With regards to JPMSE’s discretionary management business, JPMSE has enhanced its existing third-party fund manager (which, in this context, includes collective investment schemes managed by J.P. Morgan Asset Management) due diligence procedures to include a focused PAI outreach process. This outreach process involves asking third-party fund managers, on a periodic basis, a series of questions designed to identify the current and potential PAIs of funds/strategies approved for use in JPMSE’s products and whether and how the fund managers intend to prioritise and reduce those PAIs. The expectation is that, over time, this process will be complemented by data supplied by third-party data provider(s) as well as any PAI disclosures made by external managers that are in scope of SFDR (either at an entity or product level). JPMSE conducts the same PAI outreach process where it makes use of third-party investment advisors in its strategies (which is currently the case for all strategies which include direct investments in transferable securities). The PAI outreach process is a recent enhancement to the existing third-party manager/advisor due diligence procedures and initial responses are expected to be received as managers and advisors finalise their respective approaches to PAI. Once JPMSE has a more complete picture of PAIs across its third-party funds and strategies, the information will be made available to the portfolio management team for consideration as part of their investment decision-making and external fund/fund manager selection process. All responses received by the due diligence teams are considered as part of the broader qualitative analysis of third-party managers/advisors. JPMSE is enhancing its processes and systems to collate data on the PAI scores of approved funds/strategies as well as information from third party managers/advisors about the steps that they intend to take to reduce and/or mitigate PAIs.
With regards to our internally managed ESG strategies, the portfolio management team incorporates ESG qualitative and quantitative assessments and considerations into their investment process (where appropriate) which broadly comprises economic and market analysis, portfolio construction, vehicle selection and ESG research, and in doing so may have regard to the PAIs of specific investments. The portfolio management team maintains an active dialogue with the manager solutions team and the underlying fund managers when assessing the merits of individual funds both in isolation as well as in aggregate. Similarly, the portfolio management team uses insights and data from third-party ESG research and ratings providers to review both individual funds and the aggregated portfolio along ESG-related lines, in absolute terms as well as relative to traditional benchmark indices.
As part of the ongoing monitoring process of certain ESG strategies, the portfolio management team utilises third-party research tools periodically to generate reports which are used to assess and review impact, portfolio characteristics and performance against relevant ESG criteria. These reports include ESG ratings and trends as well as ESG risks which the portfolio management team can then factor into their portfolio construction and management process as necessary. The reports identify relevant environmental, social, employee and human rights risks associated with the strategy, via certain indicators, for example: carbon emissions, carbon intensity, high water risk, violation of UN Global Compact principles, controversial weapons and violations of human rights and labour norms. For certain ESG strategies, the portfolio management team considers these risks, and the associated negative impacts, alongside the other ESG data, ratings and trends featured in the report to inform their investment decision making. Going forward, the portfolio management team will continue to evaluate accessible PAI data via their existing third-party data providers as their services evolve to meet the PAI requirements. Further, the portfolio management team will benefit from the enhancements to the fund manager selection process detailed above as well as the data initiatives referenced in section 2 below.
With respect to our other internally managed strategies, as set out in the next section, JPMSE is taking steps to enhance its existing framework to integrate PAI considerations within its broader discretionary management business.
In respect of JPMSE’s agency securities lending business, JPMSE acts as an agent with limited discretion and re-invests cash collateral in accordance with investment guidelines approved by its clients. JPMSE is in the process of considering how to evaluate the PAI of its investment decisions for such portfolio management activity on sustainability factors, including, but not limited to, evaluating regulatory and technical advice in this context.
2. Description of the principal adverse impacts and action taken or planned
The SFDR will require JPMSE to collect data on adverse impact indicators for the purpose of reporting those impacts annually in this statement.The first reference period for this data collection is likely to be January 1st to December 31st 2022 with the results for that reference period to be published by June 30th 2023. Historical data will then be reported year on year. Any actions planned or taken with respect to PAI and indicators will also be included.
JPMSE is in the process of integrating a full PAI framework into its discretionary management business, including further development of the existing procedures and processes described in the previous section. The enhancements will focus on the following key areas:
- expanding PAI data sources – the sourcing of PAI information on underlying investments from preferred third-party vendor(s), third-party managers or other external channels;
- prioritisation and reduction of PAIs – development of prioritisation and reduction targets which complement JPMorgan Chase’s firm-wide ESG priorities;
- onboarding and monitoring - integration of PAI considerations and priorities into fund/fund manager onboarding and monitoring processes;
- broader consideration of PAI data by portfolio managers – dissemination of PAI data and PAI priorities/reduction targets to portfolio management teams for consideration in their investment decision-making processes; and
- technology infrastructure – technology enhancements for the collection and analysis of PAI data, including the aggregation of PAI indicators at legal entity level.
3. Summary of shareholder engagement approach
JPMSE’s discretionary management business does not directly undertake shareholder engagement activities with investee companies (because of the nature of its private wealth business and client base). However, pursuant to disclosures made under Article 3g of the Directive (EC) 2007/36 of the European Parliament and of the Council, as amended by Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 (Shareholder Rights Directive II – SRD II), JPMSE engages with external fund managers both before and during the period of investment to collate information as part of the selection and ongoing monitoring processes, including information about the fund managers’ approaches to engagement. JPMSE’s due diligence teams collect information on third party funds via requests for information and manager/strategy level questionnaires. These questionnaires may include requests for information on ESG integration and on engagement/stewardship, as well as other ad hoc or thematic questionnaires. Once a fund or strategy is approved for distribution, an ongoing monitoring process commences which includes, but is not limited to, periodic operational, investment and ESG information reviews.
4. Adherence to responsible business codes and international standards
This section summarises the approach taken at JPMorgan Chase group level with respect to responsible business codes, ESG international standards and ESG initiatives generally. Although JPMSE does not directly adhere to these codes and standards, it will from time to time have regard to them within its business in accordance with group wide policies and procedures (e.g. the firm’s Environmental and Social Policy Framework).
JPMorgan Chase participates in, is a member of or has committed to various initiatives and principles that address business and sustainability matters, including the United Nations (“U.N.”) Principles for Responsible Investment (through the Asset Management business of the group), and has served as a member of the Task Force on Climate-related Financial Disclosures since it was established.
In 2020, JPMorgan Chase also became a founding partner of RMI’s Center for Climate-Aligned Finance, which is developing practical solutions for financial institutions seeking to pursue the goals of the Paris Agreement in relation to relevant business activities.
JPMorgan Chase acknowledges the U.N. Guiding Principles on Business and Human Rights as the recognised framework for corporations to respect human rights in their own operations and through business relationships. The firm is a member of the Wolfsberg Group, an association of 13 global banks that aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to anti-money laundering and counter-terror financing policies.
II. Principal Adverse Impacts of Investment Advice
JPMSE does not consider the adverse impacts of investment advice on sustainability factors as we are monitoring further regulatory guidance and the development of industry and market practice in this area.
Date of publication: 22 January 2022
The EU’s Sustainable Finance Disclosure Regulation (2019/2088) (“SFDR”) requires financial market participants and financial advisers to publish on their websites information about their policies on the integration of sustainability risks into their investment decision-making and investment advice.
“Sustainability risk” is defined in SFDR as an environmental, social or governance event or condition which, if it occurs, could cause an actual or potential material negative impact on the value of an investment.
Examples of sustainability risks which are potentially likely to cause a material negative impact on the value of an investment, should those risks occur, are as follows:
- Environmental sustainability risks may include climate change, carbon emissions, air pollution, rising sea levels or coastal flooding, or wildfires;
- Social sustainability risks may include human rights violations, human trafficking, child labour, or gender discrimination; and
- Governance sustainability risks may include a lack of diversity at board or governing body level, infringement or curtailment of rights of shareholders, health and safety concerns for the workforce, or poor safeguards on personal data or IT security.
J.P. Morgan SE (“JPMSE”) has integrated sustainability risks into its investment decision-making process for all discretionary investment management strategies. JPMSE has also integrated sustainability risks into its investment advice process for all Undertakings for Collective Investment in Transferable Securities (“UCITS”) funds and alternative investment funds (“AIFs”). JPMSE’s policies on the integration of sustainability risks into its investment decision-making and investment advice process have been incorporated into handbooks and team specific procedures across its business.
JPMSE’s portfolio managers are provided with information on sustainability risks and are encouraged to take sustainability risks into account when making an investment decision. JPMSE’s investment advisers provide investment advice in relation to UCITS funds or AIFs which are monitored, including regarding sustainability risks, as part of JPMSE’s due diligence processes. For discretionary investment management strategies that have been customised at client request, and which use standard discretionary investment management strategies to incorporate customised investment restrictions, JPMSE has integrated sustainability risks in its investment decision-making process for the standard discretionary investment management strategies and such client customisations may therefore alter the sustainability risk profile of an investment portfolio. Sustainability risk would not in itself prevent JPMSE from making or recommending an investment. Instead, sustainability risk forms part of JPMSE’s overall risk management processes, and is one of many risks which may, depending on the specific investment opportunity, be relevant to JPMSE’s determination of risk.
A link to the relevant disclosure statement for other areas of JPMSE’s activities outside of Wealth Management can be found here.
J.P. Morgan SE is a participant in the UK Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to claimants if an institution is unable to meet its financial obligations. The FSCS is only available to certain types of claimants and claims. Payments to eligible claimants under the FSCS will vary depending on the type of protected claim the claimants hold with respect to the relevant institution. Payments under the FSCS in respect of protected deposits are subject to a limit on the maximum compensation that any eligible depositor is entitled to claim. Payments under the FSCS in respect of Designated Investment Business (as defined under the FSCS) are subject to a maximum payment per eligible investor. Details of these deposit and investment limits can be found at https://www.fscs.org.uk./what-we-cover/investments/. The compensation limits relate to the combined amount in all the eligible claimant’s accounts with the relevant J.P. Morgan firm.
Please note that financial instruments and other Investments which are not deposits for UK regulatory purposes are not protected in the same manner as deposits. This means that should the issuer or product provider of such a financial instrument or other Investments fail to pay under the instrument or should the instrument fall in value, you would not be entitled to any protection under the FSCS solely on the basis of such a failure or such fall in value. FSCS cover may be available for claims against a party who provides investment business to you where the claim is directly related to the provision of that investment business, for example, if you have a claim against J.P. Morgan SE in relation to such investment business and we are unable to meet our obligations under that claim.
A detailed description of the FSCS (including information on how to make a claim, eligibility criteria and the procedures involved) is available from the FSCS, who can be contacted at 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU or accessed online at www.fscs.org.uk.
In addition, deposits with J.P. Morgan SE are covered by the German private banks’ statutory compensation scheme for depositors and investors (Entschädigungseinrichtung deutscher banken, EdB).
The EdB (Burgstraße 28, 10178 Berlin, Germany, http://www.edb-banken.de) protects deposits and certain liabilities arising from securities transactions at certain credit institutions to the extent provided for under the German Deposit Guarantee Act, and if applicable, in connection with the German Investor Compensation Act. Private individuals as well as partnerships and corporations are entitled to compensation. Deposits of banks and institutional investors, such as financial institutions and investment firms, undertakings for collective investments in transferable securities, insurance undertakings and deposits of public authorities are not covered. The EdB protects deposits up to a limit of EUR 100,000 per depositor and 90% of liabilities arising from investment business, limited to the equivalent of EUR 20,000. Liabilities in respect of which a bank has issued bearer instruments such as bearer bonds and bearer deposit certificates are not protected. Compensation is provided in connection with investment business particularly if, contrary to its duties, a bank is unable to return monies owed to a customer in connection with securities transactions and/or financial instruments owned by the customer and held in custody on its behalf.
In relation to J.P. Morgan (Suisse) SA legal entity
Effective 13 February 2022
This Booklet illustrates the scenarios under which J.P Morgan (Suisse) SA may be required to or allowed to share certain information to third parties or affiliates.
The Booklet may be amended or updated from time to time to reflect changes in our practices with respect to the disclosure of client data in Switzerland or abroad, or changes in applicable law. We encourage you to read this Booklet carefully, and to regularly check this page to review any changes we might make.
Are my deposits protected under the deposit insurance esisuisse?
Yes, like any bank and any securities firm in Switzerland, J.P. Morgan (Switzerland) Ltd is required to sign the Self-regulation “Agreement between esisuisse and its members”. This means clients’ deposits are protected up to a maximum of CHF 100,000 per client. Medium-term notes held in the name of the bearer at the issuing bank are also considered deposits. Depositor protection in Switzerland is provided by esisuisse, and the depositor protection system is explained in detail at https://www.esisuisse.ch/en
What is it?
The Swiss Financial Services Act (FinSA), which came into effect on 1 January 2020, specifies the rules of conduct that financial service providers must adhere to in order to strengthen investor protection and increase market transparency.
FinSA applies both to financial services provided to clients domiciled in Switzerland as well as to financial services provided in Switzerland.
What does it mean for me?
Client Classification
One of the requirements under FinSA is for financial service providers to classify their clients as retail, professional or institutional. Retail clients are all clients that are not classified as professional clients. Institutional clients are a subcategory of professional clients. Depending on your knowledge, experience and financial expertise, you will fall within either one of these three categories.
Investor Protection
These three classifications have various effects on your protection and your investments with us. Retail clients benefit from the highest level of investor protection under FinSA with very stringent information, reporting and documentation duties but have a limited access to our products.
You may request to change categories at any time over the course of your relationship with us depending on whether you wish to access our full product range or whether you wish to benefit from a higher level of investor protection. Please note however that any request is subject to conditions.
If you would like to request a change in your classification or if you have any questions, please contact your J.P. Morgan Representative.
Complaints
If you are unhappy with any aspect of the provision of our products or services, please contact your J.P. Morgan Representative in the first instance whether in person, by telephone, email or in writing at:
J.P. Morgan (Suisse) SA
35, rue du Rhône
Case postale
1211 Genève 3
Switzerland
Please note that any communication to a legal entity other than J.P. Morgan (Suisse) SA is not covered by Swiss banking secrecy.
Swiss Banking Ombudsman
If no mutually agreeable solution can be found to a dispute with the Bank, you can apply to the Swiss Banking Ombudsman, a free and impartial information and mediation service.
Generally, the Ombudsman only gets involved after the client has made a complaint in writing to the bank and the bank has had the opportunity to respond.
Swiss Banking Ombudsman
Bahnhofplatz 9 Postfach
8021 Zurich
Phone: +41 43 266 14 14
Fax: +41 43 266 14 15
Additional Information
J.P. Morgan (Suisse) SA is authorized to operate as a bank in Switzerland. It is subject to the Swiss Federal Banking Act and is supervised by the Swiss Supervisory Authority (FINMA) with head offices in Bern.
Swiss Financial Market Supervisory Authority FINMA
Laupenstrasse 27
CH-3003 Bern
Phone: +41 31 327 91 00
Fax: +41 31 327 91 01
E-mail: info@finma.ch
The financial markets present many different risks of which investors should be aware prior to investing. It is the policy of J.P. Morgan (Suisse) SA (the “Bank” or “J.P. Morgan” or “we”) to draw the attention of its client(s) (the “Client” or “Investor” or “you”) to the risk factors which may make certain investments more risky and/or more complex than standard investments. This Risk Disclosure Booklet forms part of the J.P. Morgan Terms and Conditions Applicable to Clients (the “Private Client Terms”).
