Defendant Name: J.P. Morgan Securities LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: JPMorgan Chase & Co.
SIC Code: 6021
CUSIP: 46625H10

Initial Case Details

Legal Case Name In the Matter of J.P. Morgan Securities LLC
First Document Date 06-Jan-2016
Initial Filing Format Administrative Action
File Number 3-17036
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Securities Act
• Sec 17(a)(2)

Resolutions

First Resolution Date 06-Jan-2016
Headline Total Penalty and Disgorgement $4,000,000

Related Documents:

2016-1 06-Jan-2016 Press Release--Administrative Proceeding
SEC: J.P. Morgan Misled Customers on Broker Compensation
On January 6, 2016, the SEC announced that: "J.P. Morgan's brokerage business agreed to pay $4 million to settle charges that it falsely stated on its private banking website and in marketing materials that advisors are compensated 'based on our clients' performance; no one is paid on commission."
33-10001 06-Jan-2016 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Section 15(b) of the Securities Exchange Act of 1934, and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 6, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against J.P. Morgan Securities LLC ("JPMS"). According to the SEC: "This matter arises from false and misleading statements in certain JPMS marketing materials regarding how JPMS compensated registered representatives in its U.S. Private Bank ('JPM Private Bank'). Between 2009 and 2012, JPMS made false and misleading statements in certain marketing materials distributed to its private banking customers concerning the factors JPMS used to determine compensation for its JPM Private Bank registered representatives, also known at JPMS as 'advisors' ('Advisors'). On its private banking website and in certain other JPM Private Bank marketing materials distributed to current and prospective customers, JPMS stated that Advisor compensation was based solely on the performance of the investments in customer accounts. Specifically, JPMS stated that it 'compensate[s] our advisors based on our clients' performance; no one is paid on commission' ('Compensation Misstatement'). Although JPMS did not pay JPM Private Bank Advisors commissions, contrary to JPMS' representations, Advisor compensation was not 'based on clients' performance' but was instead comprised of salary and a discretionary bonus that took into consideration a number of other factors. "