The U.S. Securities and Exchange Commission (SEC) announced on Friday that two J.P. Morgan wealth management subsidiaries have agreed to pay US$267 million, and to admit wrongdoing, to settle charges that they failed to disclose conflicts of interest.

At the same time, the U.S. Commodity Futures Trading Commission (CFTC) also settled similar allegations, ordering another $100 million in penalties and restitution.

An SEC investigation found that the firm’s investment advisory business, J.P. Morgan Securities LLC, and a bank subsidiary, JPMorgan Chase Bank N.A., favoured the firm’s own proprietary investment products without properly disclosing the preference, the SEC says in a statement.

According to the SEC’s order settling the case, the firms failed to disclose numerous conflicts of interest to wealth management clients between 2008 and 2014. The subsidiaries agreed to jointly pay US$127.5 million in disgorgement, US$11.815 million in prejudgment interest, and a US$127.5 million penalty.

“Firms have an obligation to communicate all conflicts so a client can fairly judge the investment advice they are receiving,” says Andrew Ceresney, director of the SEC’s enforcement division. “These J.P. Morgan subsidiaries failed to disclose that they preferred to invest client money in firm-managed mutual funds and hedge funds, and clients were denied all the facts to determine why investment decisions were being made by their investment advisors.”