Defendant Name:
J.P. Morgan Securities LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
JPMorgan Chase & Co.
SIC Code:
6021
CUSIP:
46625H10
Document Reference:
33-10001
Document Details
Legal Case Name
In the Matter of J.P. Morgan Securities LLC
Document Name
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
Document Date
06-Jan-2016
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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. "
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Civil Penalty
Individual:
$4,000,000.00
Shared: