JP Morgan affiliates to pay $151M to resolve SEC enforcement actions

The Securities and Exchange Commission charged J.P. Morgan Securities and J.P. Morgan Investment Management ,both affiliates of JPMorgan (JPM) Chase & Co., in five separate enforcement actions for failures including misleading disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers. Without admitting or denying the findings in the SEC’s orders, the two affiliates agreed to pay more than $151M in combined civil penalties and voluntary payments to investors to resolve four of the actions. The SEC did not impose a penalty in one of the actions, taken against JPMS, because JPMS cooperated in the investigation and undertook remedial measures. “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,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “With today’s settlements, which include multiple self-reports and large voluntary payments to harmed investors, JP Morgan is being held accountable for its regulatory failures.”