The firm agrees to pay over $151 million for misleading disclosures, fiduciary breaches, and conflicts of interest in multiple enforcement actions.
The U.S. Securities and Exchange Commission (SEC) charged J.P. Morgan Securities LLC (JPMS) and J.P. Morgan Investment Management Inc. (JPMIM) for multiple violations, including misleading investor disclosures, breach of fiduciary duty, prohibited joint transactions, and conflicts of interest. The charges stem from five separate enforcement actions, with the firm agreeing to pay over $151 million in civil penalties and voluntary payments to affected investors.
“JP Morgan’s conduct across multiple business lines violated various laws designed to protect investors from the risks of self-dealing and conflicts of interest… JP Morgan is being held accountable for its regulatory failures,” said Acting Director Sanjay Wadhwa of the SEC’s Division of Enforcement.
These violations harmed investors and led to the imposition of cease-and-desist orders and significant financial penalties. J.P. Morgan agreed to make restitution to investors and enhance its compliance measures.
As the Lord Leads, Pray with Us…
- For Chair Gensler to be discerning as he heads the Securities and Exchange Commission.
- For members of the SEC as they week to enforce federal laws and regulations regarding investment firms and publically-traded companies.
Sources: Securities and Exchange Commission
