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JP Morgan Receives SEC Inquiry

Regulators probe a relationship between mutual fund administrator Bisys and funds JP Morgan now owns.
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JP Morgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report is coming under regulatory scrutiny in a probe of possible kickbacks to mutual funds.

The bank said late Friday that it received a letter from the

Securities and Exchange Commission

as part of the investigation, according to published reports.

The SEC wants information about services that

Bisys Fund Services

(BSG)

provided to mutual funds of the old Bank One Corp., which is now part of JP Morgan Chase,

TheStreet Recommends

Reuters

reported.

Bisys last month

agreed to pay $21.4 millionto settle SEC charges that it made improper marketing arrangements with mutual fund advisers.

In 2004, the SEC began examining arrangements between Bisys' fund administration unit and mutual fund advisers in which portions of Bisys' administration fees were used to pay for marketing and distribution of the mutual funds.

JP Morgan Chase said it plans to review its records in order to respond to the SEC, according to

Reuters

.

JP Morgan Chase shares fell 48 cents Friday to close at $47.29. Bisys stock finished the session down 44 cents at $10.76.