JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return

From JPMorgan Chase, this is a structured product linked to the S&P GSCI® Crude Oil Index Excess Return (SPGCCLP), which provides a benchmark for the investment performance of crude oil. This index also will usually reflect the theoretical performance of a trader that is purchasing or selling crude oil futures.

JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return are for investors looking to earn Contingent Interest Payments at a rate that is above-market if, on certain, periodic observation dates, the underlying asset closes at or higher than a specific threshold. However, these same investors are also taking on the risk of losing part of or even all of their principal, as well as the risk that there may not be any payments on some or all Review Dates. 

These Auto Callable Contingent Interest Notes are not for most retail or inexperienced investors. Yet unfortunately, there are now investors with little investing experience or low-risk tolerance levels that have suffered serious losses from these JPMorgan Chase structured notes linked to the S&P GSCI® Crude Oil Index Return.

Our structured product losses lawyers at Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing investors who have grounds for pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against JPMorgan Chase for unsuitably marketing and selling these complex products. If you would like to determine whether you too have grounds for an Auto Callable Contingent Interest Note investor claim, contact one of our securities lawyers today.

This is a prepackaged investment with one or more derivatives, as well as more traditional financial instruments. Structured products are complex investments that will typically include certain assets, such as a stock, a basket of securities, currencies, or commodities, and its assets are usually tied to interest. Instead of offering the more standard payment features, like those related to the final principal or periodic coupons, payoffs from structured products are derived from the performance of at least one of the underlying assets and not the issuer’s cash flow.

Typically, a broker-dealer and its financial advisor will earn higher commissions and interest from selling structured products than more traditional, less risky investments. However, the fees can offset the benefits of this kind of complex, illiquid investment, such as the higher yield than they would likely obtain from a money market fund or a CD. Not only that, but this kind of product can be difficult to explain to most unsophisticated investors.

Unfortunately, the high risks involved haven’t stopped financial firms like JPMorgan Chase from creating auto callable notes and selling them to retail customers, including retirees. There also have been reports that brokers may have allegedly misrepresented the risk involved, allegedly causing customers to think that this kind of investment was a safer bet than it has proven to have been, especially with the crude oil market turning volatile in recent years.

Contact Shepherd Smith Edwards and Kantas and ask for a free, initial consultation with one of our expert investor losses lawyers. It may be possible that your financial advisor misrepresented the risks, failed to conduct the proper due diligence to fully comprehend said risks so as to be able to properly explain them to you, or was fully aware that they were unsuitably recommending this Auto Callable Contingent Interest Note to you and chose to forego your best interests.

Identifying securities fraud or broker negligence as a cause of investment losses can be very difficult, which is why you will need the help of highly experienced securities attorneys and investment fraud attorneys working for you. Call (800) 259-9010 today.