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 31-Oct-2024
Initial Filing Format Administrative Action
File Number 3-22278
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 31-Oct-2024
Headline Total Penalty and Disgorgement $45,000,000

Related Documents:

34-101494 31-Oct-2024 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On October 31, the SEC instituted settled administrative and cease-and-desist proceedings against J.P. Morgan Securities LLC, stating: "This matter arises from disclosure violations by J.P. Morgan Securities LLC (“JP Morgan Securities”), a dually registered investment adviser and broker-dealer, in connection with its advisory program known as the Portfolio Manager Program (“PM Program”). Since at least July 2017 until October 11, 2024 (the “Relevant Period”), JP Morgan Securities failed to fully and fairly disclose the financial incentive of itself and certain of its financial advisors2 to recommend the PM Program over advisory programs offered by JP Morgan Securities that use third-party managers."
2024-178_3-22278 31-Oct-2024 Press Release--Administrative Proceeding
JP Morgan Affiliates to Pay $151 Million to Resolve SEC Enforcement Actions
The SEC stated: "between July 2017 and October 2024, JPMS failed to fully and fairly disclose the financial incentive it and some of its financial advisors had when they recommended JPMS’s own Portfolio Management Program over third-party managed advisory programs offered by JPMS. During the relevant period, assets under management in the program’s strategies grew from approximately $10.5 billion to morethan $30 billion."