The Federal Reserve Board gave J.P. Morgan & Co. permission Monday to acquire 45% of American Centuries Cos., a Kansas City, Mo.-based no-load mutual fund company.

J.P. Morgan also may fill two of the nine seats on the board of directors at American Centuries, the Fed said.

To win approval, J.P. Morgan agreed that an independent company would distribute American Centuries mutual funds. The Fed does not permit banks to distribute mutual funds.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.